Direct Group Acquires Coupon Service Corporation

Acquisition Marks Significant First Step in Direct Group’s Aggressive Expansion Strategy

TRENTON, NJ, June 29, 2004 — The senior management of Direct Group (DG), together with funds advised by private equity firm Schroder Ventures US (SVUS), announced today that they have acquired Coupon Service Corporation (CSC) of Jersey City, NJ. Both DG and CSC are leading companies in the premium high-volume, time sensitive segment of the direct mail industry. Terms of the transaction were not disclosed.

This acquisition marks the first step in DG’s aggressive strategy to expand through both internal development and targeted acquisitions. DG’s senior management and SVUS acquired DG just two months ago to serve as a growth platform for building a world-class direct marketing business.

"In analyzing this transaction, we looked at CSC's customers and markets served, its capabilities and reputation. CSC’s considerable strengths in these areas, together with its New Jersey location, made it a perfect fit for the Direct Group as we work towards substantially expanding the scale of our business and breadth of our product and services offering," said Manny Ortiz, Direct Group president and chief executive officer. “Our combined nationwide customer base will enjoy expanded capabilities and capacity that were not available to them previously.”

Monty Yort, a partner at Schroder Ventures US, said, "We believe that DG is well positioned to capitalize on the significant opportunity that exists in the direct marketing sector. To that end, our plan is to provide investment capital that will help DG achieve its objective of growing its business to solidify its competitive positioning. The acquisition of CSC, coupled with DG’s internal growth initiatives, marks a very strong start to the realization of this strategy.”

About Direct Group

DG provides a full suite of direct mail services, including printing, letter shop, laser and other personalization, fulfillment, data services and creative consulting through long-term partnerships with world-class customers throughout the U.S. The Company’s three operating facilities and corporate offices are in New Jersey.

About Schroder Ventures US

Schroder Venture Partners LLC (Schroder Ventures US) is one of six affiliated international private equity organizations advising over $7.5 billion of funds under management in 11 offices located in North America, Europe and Asia. The firm is focused on middle-market investment opportunities in the media, business services, communications and technology services sectors in partnership with management. Schroder Ventures US currently advises the $270 million Schroder Ventures US Funds. Further information can be found on the web at www.svus.com.

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Contacts:

For Direct Group                          For Schroder Ventures US

Chris Ryan                                    Molly Morse/Micheline Tang

Executive Vice President                Kekst and Company

(856) 241-9400                               (212) 521-4800