LOOKS LIKE WE HAVE A FLYER.

Yep wasnt expecting that - not sure if teh market likes it yet though? Marked down a penny pre open so far so could still my 130/135 buy in price....


Premier Direct Group ("PDG") announces that heads of agreement have been signed
for the acquisition by PDG of Oriflame UK Limited ("Oriflame UK"), the wholly
owned, UK subsidiary of the Swedish cosmetics group Oriflame Cosmetics S.A.
("Oriflame Cosmetics").

Oriflame UK's high-quality natural skin care products are exclusively marketed
to customers through an extensive network of independent, self-employed
salespeople, known as sales consultants. Products are typically offered through
catalogue distribution, at in-home demonstrations, or simply shared among
friends and family.

Oriflame Cosmetics is publicly listed on the Swedish stock exchange,
Stockholmsborsen and has annual sales of approximately € 650 million. The group
has more than 1.5 million sales consultants in 46 countries and produces over 64
million catalogues annually in 35 languages.

The initial consideration price is a nominal amount. PDG will pay Oriflame
Cosmetics a contingent deferred payment based on a reducing percentage of
turnover over the first three years. This consideration is capped at a maximum
of £5m, although it is anticipated to be substantially lower. Oriflame Cosmetics
will settle all outstanding third party liabilities of Oriflame UK on completion
which is expected to be in the first quarter of 2006.

Oriflame UK was previously a successful business which has experienced a number
of years of declining trade due primarily to difficulties recruiting
consultants. PDG brings substantial recruitment skills which the Board believes
will help turn the Oriflame UK business around. In particular, PDG's directors
have over 20 years experience in cosmetic sales. The directors of PDG plan to
restructure the operations of Oriflame to eliminate the ongoing losses and
believe that the acquisition will have little impact on current year results and
be earnings enhancing in its first full year of ownership.

In the year ended 31 December 2004, Oriflame UK reported turnover of £3.5m, a
loss before taxation of £1.6m and net liabilities of £126,000, although
additional losses since then and a planned capital restructuring will change the
position before completion. Further details will be provided when the deal is
concluded.

Commenting on the acquisition, Eric McClenaghan said, "We are delighted to have
agreed terms for the purchase of Oriflame UK. We see the principle task facing
the business being consultant recruitment, which we have both an exceptional
knowledge of and a proven track record of delivering. The business both extends
and complements our existing direct sales operations. We believe that the
extensive specialist direct sales experience of our board will enable us to
develop and grow the UK Oriflame business progressively".