TOU Touch Grp

    Embargoed Release: 07:00hrs Monday 12th November 2007

                                Touch Group plc                                

                                 (`the Group')                                 

                                Equity Disposal                                

Touch Group plc the international business-to-business publishing group, today
announces that it has entered into an agreement with its former wholly owned
subsidiary Touch Local Limited (`Touch Local') pursuant to which Touch Local
has agreed, on a conditional basis, to repurchase the majority of the 27.5 per
cent minority shareholding that the Group holds in Touch Local, for a cash
consideration of �2 million (the `Transaction'). Following completion of the
Transaction the Group will retain a number of shares in the capital of Touch
Local equal to 3.75 per cent of Touch Local's issued share capital. It is
expected that completion of the Transaction will take place on 17 December
2007.

The decision to dispose of the majority of the Group's shares in Touch Local
results from the Board's determination to focus efforts and resources on
growing the Group's publishing business. Whilst the Board remains supportive of
Touch Local's business model and prospects it recognises that a disposal at
this time brings about three key advantages to the Group and its shareholders:

 1. The Transaction enables the Group to access further funds to support the
    growth of its core business without having to dilute existing shareholders
    or increase operational gearing.
   
 2. We have been successful in continuing the development of Touch Briefings
    into a recognised advertising channel, which our clients increasingly
    contract for ahead of time. Whilst this new business model has a greater
    requirement for working capital to support longer lead times, this move
    from one-off sales to long-term relationship management across the business
    and its product mix will contribute significantly to securing the future
    business potential of Touch Briefings with a view to providing both
    stability and growth potential for the future.
   
 3. The Transaction will enable the Group to install the latest server
    technology and upgrade its Customer Relationship Management, Document
    Management, Content Management and Telephone systems. Whilst the investment
    is considerable the Board believes that the related increases in efficiency
    and operating margin will exceed the cost, even within the first year.
   
Vincent Isaacs, Chairman, commented:

`I am delighted to announce this transaction, which brings to completion our
transformation at a corporate level into a focussed business-to-business
publishing company and provides shareholders with greater clarity with which to
assess the business moving forward. The Transaction provides cash to fund our
investment plans to support our ongoing organic growth and allows us to focus
on the task of building a world class publishing business in our chosen sectors
where we already enjoy an enviable reputation for content quality and
delivery.'

Further information required by Schedule Four of the AIM Rules:

Touch Local owns a network of local search directories and websites in the UK.
As at 30 June 2007, the carrying value of Group's investment in Touch Local was
�3.5 million. The sale will have the effect of reducing Touch Group's net
assets by �1.2 million. No income was derived from the investment in Touch
Local during the year ended 31 December 2006 and during the six month period
ended 30 June 2007.

For further information:

Touch Group plc

Vincent Isaacs

Executive Chairman Tel: 020 7452 5224

Hansard Group

Andrew Tan Tel: 020 7245 1100

Shore Capital and Corporate Limited

Nominated Adviser to the Company

Dru Danford Tel: 020 7408 4090



END

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