Share price: 112.80p

INVESTMENT IN BRAND CONSULTING OPERATION

26th June 2006

Cello invests in brand consulting operation

Cello Group plc (‘Cello’) (AIM: CLL), the research and data led marketing services group, is strengthening its brand consulting operating platform with the acquisition of Farm Communications Limited (‘Farm’) for a total maximum consideration of £2,332,000 in a mixture of cash and new ordinary shares. The initial consideration consists of up to £700,000, of which up to £300,000 will be paid in cash and the balance satisfied by the issue of 326,532 new ordinary shares.

In addition, there are further performance related payments in respect of the period to 31 December 2007 of up to £1,632,000 payable £408,000 in cash and the balance in new ordinary shares.

Farm will be merged with Leith London. Its clients include Smile, SACLA, Youngs, ICI, Smart and COI. For the year end 31 December 2005, Farm achieved £1.6m of gross profit, and at December 31 had net assets of £87,000.

Application has been made to the London Stock Exchange for the new shares to be admitted to AIM and it is expected that admission will take place by 1 July 2006.

 

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Dianna Hillier

Dianna.Hillier@cellohealth.com

Phone 020 7812 8468

Address

Cello Health plc

Queens House

8-9 Queen Street

London

EC4N 1SP

Registered Office

Queens House

8-9 Queen Street

London

EC4N 1SP

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in England no.05120150