RAF Real Affinity

    Trading Update
             



3 December 2007

                          REAL AFFINITY PLC

                     FUNDING AND TRADING UPDATE


Real Affinity plc ("Real Affinity" or "the Company"), the  AIM-listed
marketing services  company,  announces  that  following  the  recent
restructuring which took effect from  30 June 2007, Real Affinity  is
now operating  as two  integrated divisions  with new  management  in
place and whilst longer term prospects are encouraging, the Company's
trading  performance  has  yet  to   reflect  the  benefits  of   the
restructuring.   The interim  results  for the  six months  ended  30
September 2007  to  be  published  in  December  will  show  a  small
operating profit before plc and exceptional costs.

As stated  in the  2006  Report and  Accounts, John  Ross,  Chairman,
continues to support the Company  through a combination of loans  and
equity investment.  On 2 August  2007, Red Kite Capital Partners  Ltd
("Red Kite"), a company controlled by Mr Ross, agreed to provide a �1
million funding facility to the Company in the form of a  convertible
redeemable unsecured loan note. At  30 September 2007, the loan  note
amounted to �390,000. The loan note  is convertible at any time  into
ordinary shares at a price equal  to the nominal value of the  shares
at the time  of conversion.  The loan  note currently  does not  bear
interest. The  Directors  (other  than Mr  Ross)  have  entered  into
discussions with Red Kite to place  the funding facility on a  formal
structured basis to meet the ongoing working capital requirements  of
the Company.

The funding facility  is a  related party transaction  under the  AIM
Rules. The Directors of  the Company (other  than Mr Ross)  consider,
having consulted with HB Corporate, the Company's Nominated  Adviser,
that the terms of the funding facility are fair and reasonable so far
as the shareholders of the Company are concerned.

Shareholders will be  aware that  the Company's share  price has  for
several months been below the par value of the shares.  The Board  is
considering  implementing  a  reorganisation  of  the  share  capital
(subject to shareholder approval at an extraordinary general meeting)
to make the shares  more attractive to new  investors and to  provide
more visibility to the market.

Shareholders will be  advised of  the details of  the proposed  share
capital reorganisation on publication of the interim results.



Enquiries:


Real Affinity plc                               0113 290 8730
Martyn Archer, Group Finance Director
Brent Fitzpatrick, Non-executive Director

HB Corporate                                    0207 510 8600
Edward Hutton / Rachel Kane

Bankside Consultants                            0207 367 8888
Michael Padley / Susan Scott

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