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2nd December 2008

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CSS sells PFD

18.06.08 Anna Richardson

CSS Stellar has agreed to sell its subsidiary talent agency Peters Fraser & Dunlop to PFDH, a newly formed company backed by a consortium of investors led by media mogul Andrew Neil.

The decision to dispose of PFD followed an operational review by the CSS board, in which it became clear that there were "no benefits to continuing to develop the activities of PFD and CSS's other operations within the same group", the company announced in a statement this morning (18th June).

The deal is worth a maximum of £4m, of which £3.75m is payable in cash on completion, with the balance of £0.25m due in 2011, dependent on PFD's earnings in the three years to 2010.

PFD's operating profit for the year ended 31 December 2007 was £0.4m on turnover of £9.4m, with net assets at 31st December 2007 of £1.7m. CSS added that "due to the size of PFD relative to the CSS Group", the sale is conditional on the approval of the CSS shareholders at an Extraordinary General Meeting to be held on Monday 7th July 2008.

It is expected that completion will take place following the EGM. The proceeds from the sale will be used to reduce the Group's borrowings and for reinvestment in group activities.

David Buchler, chairman of CSS Stellar, said the group's future was "best served by focussing on our core business of Sports Marketing and Events".

"This disposal comes at the right time for CSS, providing value for shareholders and creating a more streamlined business which is in a good position to now move forward," he added. "PFD has been through a traumatic period of change and this sale will provide a platform for the business to return to a market leading position."

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