Note 23: Increase in holdings in subsidiary undertakings

a. On 31 October 2006, the Company paid £570,000 ($1,079,000) relating to the deferred consideration for the purchase of OutCast Communications Limited (“OutCast”) in June 2005. The £569,000 comprised cash of £323,000 ($613,000) with the remainder in shares.

b. On 30 November 2006, the Company acquired a further 25% stake in the UK public relations company Lexis Public Relations Limited (“Lexis”), by the acquisition of a 25% stake in Panther Communications Group Limited (“Panther”), the parent company of Lexis. The stake was acquired for a total consideration of £2,072,000 of which £1,553,000 was satisfied in cash and the remainder in shares, taking the Company’s total stake to 76%. Based upon the acquisition balance sheet at 30 November 2006, goodwill of £2,039,000 has been capitalised, including £10,000 of legal and professional fees, and will be amortised over its useful economic life of 20 years. It is the intention of the Company to acquire the whole of Panther by 2010 and Panther’s existing management has agreed to sell further stakes in the company over the next three years.

c. On 1 January 2007, the Company paid £144,000 as deferred consideration for the purchase of Credo Communications Limited (“Credo”) in December 2005. The £144,000 comprised cash of £72,000, with the remainder in shares.