DMG INFORMATION

KEY DEVELOPMENTS:

1_UNDERLYING REVENUES GREW BY 17%

2_UNDERLYING OPERATING PROFIT* GREW BY 11%

3_BOLT-ON ACQUISITIONS ENHANCED OUR MARKET-LEADING POSITION

4_OPERATING PROFIT* MARGINS ROSE TO 24% EVEN AFTER ABSORBING AMBITIOUS INTERNAL DEVELOPMENT PROGRAMMES TO FUEL FURTHER GROWTH

DMG Information had an excellent year with a strong financial performance and a wide range of developments in the business. These have further enhanced our position as an independent provider of essential information, analytics and insight to customers in our chosen niche markets. On a like for like basis, adjusting to exclude acquisitions and disposals made in the second half of 2006, and using constant exchange rates, underlying revenues increased by 17% to £293 million and operating profit* by 11%.

INSURANCE AND FINANCIAL

Operating profit* from DMGI’s insurance and financial division rose by £4 million or 14% to £35 million on revenues up 20% to £110 million. Risk Management Solutions (RMS) makes up more than half of this division.

RMS, the world’s leading provider of solutions to assist the insurance sector in quantifying and managing catastrophe and other risks, once again was a strong performer. The company is pursuing an aggressive strategy of increasing geographic coverage of its models, widening the number of perils covered and providing enhanced analytical and data related services to its clients.

Our financial information companies, Trepp and Lewtan, also had an outstanding year. The level of new issuance in the commercial mortgage-backed securities market, served by Trepp, was at record levels although the tightening of the US credit markets in the late summer is expected to cause a slowdown in activity. Lewtan saw good growth in products and services to both the issuers and investors in asset-backed securities. Although there is now a significant amount of turmoil in financial markets, our financial information businesses continue to see good levels of activity and demand for their services.

PROPERTY

Operating profit* from the property division rose by £4 million or 16% to £29 million on revenue up 20% to £106 million.

Landmark Information Group, based in the UK, had an exceptional year with underlying revenues growing by 18%.

In the UK housing market transaction volumes remained robust and this, together with increasing market penetration, fuelled strong growth. This was combined with continuing growth in sales of electronic mapping and environmental reports to participants in a commercial property market that was buoyant throughout the year. Landmark also entered the Dutch home property market during the year and expects to enhance its continental European presence in the near future.

In the USA, Environmental Data Resources, the leading provider of information used in commercial property due diligence, also showed pleasing growth despite relatively flat commercial property transaction volumes. In particular EDR continued to grow its sales to commercial property lenders.

Both Landmark and EDR were successful in completing bolt-on acquisitions to enhance their product offerings to existing customers. In April EDR acquired Parcel, an electronic platform for creating and delivering commercial real estate due diligence reports. In July Landmark acquired Quest, the market-leading provider of systems designed to manage the exchange of valuation and survey information between lenders and surveyors.

Property & Portfolio Research enjoyed a good year with an increasing rate of sales growth.

OTHER B2B

Operating profit* from DMGI’s other business information companies rose by £3 million to £11 million on revenue up 25% to £77 million. Sanborn, serving the geo-spacial information market, continues to grow revenues strongly and to improve profit margins.

In its first full year after acquisition Genscape grew sales satisfactorily, and continued to research and launch new products. In the US the company launched a natural gas monitoring service covering Texas while in Europe it continued to expand geographic coverage for the electricity market.

Hobsons had an outstanding year with strong sales and profit growth in Europe, Australia and the US. In addition to organic growth, two bolt-on acquisitions were completed in the US, with the addition of Naviance, a leading provider of planning and advice systems to high schools, and AY Recruiting Solutions, a provider of recruitment technology and services to educational institutions.

OUTLOOK

The prospects for the new financial year remain encouraging for DMGI. Member companies continue to identify growth opportunities and we are executing a programme of revenue investment, designed to maintain good growth rates in the medium-term.

The continuation of uncertainties in the credit markets and a downturn in property transactions could reduce the rate of growth in certain products, but DMGI’s business models are strong and newer products are growing well.

* Adjusted operating profit (before exceptional items and amortisation and impairment of intangible assets).