EKY Ekay

    Ekay PLC                                    

       Acquisition of Wallace Barnaby & Associates Ltd for �1.75 million       

                                      and                                      

                            Directorate Appointment                            

Ekay PLC ("Ekay" or the "Company"), the advertising and marketing agency
specialising in the SME market, announces that it has on 24 November 2006
completed the acquisition of the Guernsey based Wallace Barnaby & Associates
Ltd and its subsidiaries ("Wallace Barnaby"), one of Britain's largest offshore
marketing and advertising agencies, from Wallace Barnaby Holdings Limited (the
"Vendor").

The consideration of �1.75 million has been satisfied by the issue at
completion of 1,942,105 new ordinary shares in Ekay (the "Consideration
Shares") and a payment at completion of �1,012,000 in cash ("Cash Portion"). At
completion �350,505 was paid to Wallace Barnaby out of the Cash Portion by way
of settlement of a debt owed by the Vendor to Wallace Barnaby. In addition, at
completion �95,000 was repaid to Wallace Barnaby by a senior employee.
Accordingly, on completion the net cash outflow from Ekay and its subsidiaries,
including Wallace Barnaby (together, the "Group") for the purposes of the
acquisition was �566,494 (before transaction costs).

Wallace Barnaby is an advertising and marketing agency with a subsidiary in
Guernsey and Jersey and a number of prestigious clients. It provides a number
of media related services including strategic planning, international media
buying, creative advertising solutions, event management, PR and online
marketing solutions.

Based on its unaudited financial results for 6 months ended 30 September 2006,
Wallace Barnaby achieved a turnover of �15,204,000 giving a gross profit of �
813,000 and a profit after taxation of �125,000. Based on its audited financial
results for the 12 months ended 31 March 2005, Wallace Barnaby achieved a gross
profit of �1,215,000 and a profit after taxation of �84,000 on sales of �
21,598,000. Wallace Barnaby had net cash of �954,000 as at 30 September 2006.

The board of directors of Ekay ("Board") believes that following integration of
the Company and Wallace Barnaby and alignment of the financial calendars of the
two companies, Wallace Barnaby will add significantly to Ekay's turnover and
profit.

The acquisition provides an excellent opportunity for Ekay to expand its
services, acquire specialisation in specific sectors and geographic areas, and
more fully target the demand for tailor-made advertising and marketing
programmes. In addition, there will be numerous new marketing opportunities
arising from the acquisition. Although these synergies have yet to be
quantified, the Board believes they will have a positive impact on
profitability almost immediately. The Board believes that an additional
strategic benefit to the Group arising from the acquisition in terms of the
Group's ongoing acquisition strategy is that the enlarged Group presence will
enhance the quality of the Group's potential acquisition targets.

Ekay and Wallace Barnaby have enjoyed a long standing customer relationship
with each other, and it is expected that this will assist greatly in the post
acquisition integration process.

Bruce Wallace, managing director of Wallace Barnaby, will join the Board of
Ekay with responsibility for the development of the Channel Islands business of
the Group.

Bruce Wallace's service agreement with the Group provides for an annual salary
of �100,400, an annual travel and entertainment allowance of �23,000 and
certain pension and other employment benefits, and a reciprocal notice period
of 6 months.

Application has been made for the Consideration Shares to be admitted to
trading on AIM. It is expected that dealings in the Consideration Shares will
commence on AIM on 30 November 2006. The Consideration Shares represent
approximately 4.96 per cent of the issued share capital of the Company as
enlarged by the issue of such shares. Save for in certain specified
circumstances, the recipients of the Consideration Shares being the Vendor and
certain persons with an interest in the Vendor, may not dispose of such shares
before the first anniversary of the date of completion of the acquisition.

Eddie Powell, Chief Executive, Ekay Plc commented:

"The acquisition of Wallace Barnaby represents an important step in Ekay's
growth. Not only will this be immediately earnings enhancing, but the expected
cross marketing and shared services opportunities, should augment future
profitability."

Bruce Wallace, Managing Director, Wallace Barnaby commented:

"This is a significant step forward for Wallace Barnaby in terms of increasing
our market presence and scope of services we can provide to our clients. We can
work with Ekay's successful strategy for growth in the advertising and
marketing sectors, and will look to increasing the profile and capacity of our
business in addition to our PR division, White Knight."

Bruce William Wallace, age 60, has held the following directorships:

Current Directorships                  Directorships within the past five    
                                       years                                 
                                                                             
Wallace Barnaby & Associates Ltd       The 2003 World Island Games Co Ltd*   
                                                                             
The Isle Of Sark Shipping Company Ltd                                        
                                                                             
World island Tourism Ltd                                                     

*The 2003 World Island Games Co Ltd was incorporated to organise the 2003
Channel Island games and was dissolved in 2004 on completion of its role.

Bruce Wallace has nothing further to declare under Schedule Two, paragraph (g)
of the AIM Rules For Companies.

                                                               24 November 2006

Enquiries:

Ekay PLC                                                                     
                                                                             
Eddie Powell, Chief Executive          0147 433 4343                         
                                                                             
Nexus Financial Ltd                    020 7451 7050                         
                                                                             
Nicholas Nelson, Managing Director                                           



END

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