FRE Freeplay

RNS No 9488t
FREEPAGES GROUP PLC
22nd December 1997


                        FREEPAGES GROUP plc
                  ("Freepages" or the "Company")
                                 
     Preliminary Results for the year ended 30 September 1997

Freepages Group plc, the interactive consumer information  service
operating  under the Scoot trading name in the UK and Holland,  is
pleased  to  announce preliminary results for the  year  ended  30
September 1997.

* Revenue  for  the  financial year ended 30  September  1997
  increased  to  #15.4 million from #4.7 million  representing  an
  increase of 228 per cent.   Revenue in the 4th quarter amounted
  to # 4.6 million.

* Net  loss per share after exceptional items amounted  to  3.4
  pence for the year.

*  Gross new classified contract value amounted to #6.2 million
  (including #1.2 million of contract renewals) in the 4th quarter
  versus #5.4 million in the 3rd quarter 1997.

* Operating cash outflow well controlled: net cash balances at
  30th September 1997 of #34.6 million available for investment in
  the growth of the business.

* During  the  4th  quarter the number of telephonic  readouts
  increased by 24 per cent to 2.6m and the number of internet readouts 
  increased by 36 per cent to 3.4m compared to the 3rd quarter 1997.

* Scoot   Netherlands   continues  to  substantially   exceed
  management budgets with 30 per cent higher revenue and  15  per
  cent lower costs.

* Successful  rebranding of the UK services into  the  'Scoot'
  brand  resulting in increases in advertiser renewal  rates,  new
  business conversion rates and higher quality consumer responses.

* The  Company  last week announced that it is in  discussions
  with  VNU  about substantially extending the scope  of  the  co-
  operation agreement between the two companies.

* It  is  expected that the Company will move to the  Official
  List of the London Stock Exchange during 1998.

In his statement to shareholders, Dick Eykel, Chairman said:

"Trading  in  the  new  financial year  following  the  successful
rebranding  continues to be strong.  Based on the deferred  income
level  and  advertiser  retention rates, management  expects  that
revenue  will  continue  to  grow  strongly  during  the  1997/98
financial year.   The revenue in the UK and overseas is likely  to
be  fuelled  by  additional  alliances and  expected  geographical
expansion."

Contacts:

Robert Bonnier, Freepages Group plc               0171 368 3900
Ronald Dorjee, Freepages Group plc                0171 368 3900
Mark Edwards, Buchanan Communications             0171 466 5000

                           Freepages Group plc/Preliminary Results

                       CHAIRMANS STATEMENT

This last financial year has been a period of major development in
the  Companys  history. The major events that  have  taken  place
during the year are summarised in chronological order below.

October 1996

The  Company  announced an alliance with Virgin.Net,  an  internet
service  provider  in  the United Kingdom,  offering  a  directory
service under the name of Virgin.Net Scoot.

January 1997

Announcement  of  a 50:50 joint venture with VNU  introducing  the
Scoot  services  into  the  Benelux  countries,  starting  in  the
Netherlands.  The joint venture partners committed to spend  #  14
million in the Netherlands to finance the start-up.

February 1997

An exclusive strategic alliance was formed in the Netherlands with
Libertel,   the  second  largest  provider  of  mobile   telephone
services, to offer the Libertel Scoot service to its subscribers.

March 1997

The  Company  raised  #43  million  net  of  expenses  through  an
international  equity offering with a NASDAQ  listing.   This  has
provided  the  Company with the financing to further  develop  its
consumer  services  and  to  expand geographically,  enabling  the
Company  to  execute  its  planned  growth  strategy  during   the
forthcoming years.

August 1997

Distribution channels were increased through the launch of a range
of CD-ROM titles marketed through our associated company TDS Group
Ltd.

Introduction of the Companys free internet fax/E-mail service.

September 1997

Opening of a new dedicated 400 person call centre in Telford.

The  Company  announced  a #1.25 million strategic  investment  in
RequesT (UK) Ltd, a marketing technology company, which will allow
the  Company  to  deliver additional purchasing benefits  for  its
consumers  and highly targeted sales solutions for large corporate
clients.  This service is expected to become available sometime in
1998.

The following events occurred after 30 September 1997:

October 1997

The  Company  decided to rebrand its service in the UK  to  Scoot,
enabling it to build a generic international brand reflecting  the
service proposition it offers to both consumers and advertisers.

Introduced the innovative free Short Message Service  ("SMS")
with Vodafone allowing consumers to receive advertiser information
directly on the mobile phone display.

Partnership  with  Excite creating Excite Scoot,  a  comprehensive
easy-to-use and locally-driven finding service.

November 1997

The  Company subscribed for a #1.5 million convertible loan in TDS
Group  Ltd.  which  continues to develop its  business  activities
successfully and is a key partner in the provision of high quality
business information to Scoot.

Partnership with AT&T developing a new mid-call diversion  service
for  consumers  calling the 0800 192 192 number.  Mid-Call  Divert
enables  the  consumer  to  be automatically  transferred  to  the
business  of  their choice and will be a breakthrough  in  the  UK
telecommunication market.

December 1997

The  Company  announced that it is in discussions with  VNU  about
substantially  extending the scope of the  co-operation  agreement
between the two companies.

Results

Revenue  for the 12 months to 30 September 1996 was #15.4  million
compared  with # 4.7 million for the previous year and represented
an  increase  of 228 per cent. In addition, a number of  important
large contracts were in principle agreed during the fourth quarter
but  will  only  be  accounted for during the first  half  of  the
1997/98 financial year.  Operating cash outflow is slightly  lower
than expected with net cash balances at the financial year-end  of
#34.6 million.

The  underlying sales trends continue to be strong with gross  new
contract  value  of  #6.2  million being achieved  in  the  fourth
quarter.  This  includes #1.2 million of renewal  contracts  value
which  has  exceeded management expectations.   Revenue  for  the
fourth  quarter  amounted to #4.6m showing a  positive  underlying
growth since the third quarter revenue was influenced by two major
contracts.

Renewals  are  fundamentally important for the  business  and  are
typically sold 45 days prior to contract expiry, resulting  in  an
additional  time lag in terms of revenue recognition,  whilst  all
associated  costs are immediately expensed through the profit  and
loss account.

Operating  loss  amounted  to  #11.5 million  (before  exceptional
items) compared to #10.1 million for the previous financial  year.
Loss per share (after exceptional items) for the year was 3.4p  on
a weighted average number of ordinary shares of 443.1 million.  It
is  the  Companys  policy not to declare a  dividend  whilst  the
current investment phase continues.

Operating costs continue to be well controlled.  In the  last  two
quarters,  a charge of #1.5 million was made for potential
bad  debts  (some  of  which  relate to  sales  made  in  previous
financial  years).   The Companys credit control  procedures  have
been  significantly strengthened and therefore the Company expects
substantially less bad debt expense in the future.   The  Company
continues  to  incur substantial consultancy, legal & professional
fees which do not relate to the operational business.

In  light  of  the one-off rebranding cost to Scoot,  the  Company
decided to take a one-off exceptional item of
#2.25  million in the fourth quarter.  This figure is higher  than
originally estimated due to increased marketing effort during  the
rebranding  period, which has already led to substantially  higher
renewal rates in the current quarter.

Operational Review

Employees

Ongoing recruitment of senior and middle management resulted in  a
substantial  reduction  of  staff  turnover  creating   a   stable
environment  that allows employees to develop in their  individual
and  team roles in a more focused and professional manner.  During
the  final  quarter  the  number in sales and  call  centre  staff
increased  significantly  and initial productivity  and  retention
results  have proven to be very satisfactory. The number of  total
employees  grew  from  386  to 589 during  the  financial  1996/97
period.

Infrastructure

The  Company has now substantially completed its UK infrastructure
aligning the sales offices with three regional centres in Glasgow,
Manchester and Harrow.  The major initiative during the  year  was
the  opening  of  a  national call centre  in  Telford,  which  on
projected  call traffic will reach full capacity  by  the  end  of
1998.

Controls and Procedures

Key  controls and operating procedures throughout the Company have
been  further  improved.  In addition,  the  Company  conducted  a
detailed top down and bottom up budgeting exercise for the 1997/98
financial   year.   This  has  resulted  in  enhanced   management
information systems.

Scoot Netherlands

Scoot  Netherlands  continues to substantially  exceed  management
budgets  with  30 per cent higher revenue and 15 per  cent  lower
costs.   On  the first of September 1997 the service was  launched
nationally  following a three month test period. At the  financial
year-end there were approximately 250 employees.

Key Operating Statistics

           Dec-95  Mar-96  Jun-96  Sep-96  Dec-96  Mar-97  Jun-97  Sep-97

Telephone 
readouts 
millions      0.2     0.4     0.5     0.7    1.1      1.7     2.1    2.6
Growth 
percentage      -    +100     +25     +40    +57      +56     +24    +24
Internet 
readouts 
millions**      -     0.3     0.5     0.7    1.4      2.5     2.5    3.4
Growth 
percentage      -       -     +66     +40   +100      +78       0    +36
Gross new 
classified 
contract 
value per 
sales 
executive  #9,117 #11,585 #15,349 #15,349 #16,876 #19,400  #25,600 #26,600
Growth 
percentage      -     +27     +32       0     +10     +15      +32     +4
Gross new 
classified 
revenue #m *  1.2     1.8     2.9       3     3.3       4      5.4    6.2
Growth 
percentage      -     +58     +58      +2     +11     +23      +35    +15

*Total gross value of all new contracts entered into during the
 period.  Due to defaults and cancellations, not all the gross
 contract value may ultimately be realised by Scoot.

**    Internet service launched March 1996.
 

Strategic Review

Our  strategic  aim  is  to  become one  of  the  worlds  leading
interactive consumer services companies, providing consumers  with
powerful  decision making information and connecting them directly
with sellers through mass distribution channels.

Brand proposition

Scoot  represents a transportable brand proposition that  reflects
the  underlying values of our business.  The new brand 

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