22 September 2008

Yell Group plc

Capital structure and banking facilities

Following the announcement on 24 July, 2008 of its financial results for the three months ended 30 June, 2008, Yell Group plc confirms that its trading and financial performance continue to be on track to meet market expectations, with strong cash generation leading to lower levels of indebtedness. Yell also confirms that it is operating within its financial covenants.

In order to achieve an appropriate level of flexibility for the business and given the continuing challenging conditions in the credit markets and the wider economy, the Board of Yell today announces the following.

First, Yell aims to reduce its indebtedness to under 4 times EBITDA as rapidly as it may. Secondly, with this in mind, the Board of Yell is suspending dividend payments until this target level of indebtedness has been reached. Thirdly, Yell intends to seek additional financial flexibility from its lenders through an increase in its future covenant headroom. Yell has entered into conversations with a number of its largest lenders who have already pre-approved this request in principle and HSBC, as facility agent, is today contacting the remaining lenders for their consent, a process which is expected to take several weeks. 

Enquiries

Yell - Investors                                   Yell - Media

Rob Hall                                              Jon Salmon

Tel              +44 (0)118 950 6838         Tel            +44 (0)118 950 6656

Mobile      +44 (0)7793 957848         Mobile     +44 (0)7801 977340

Citigate Dewe Rogerson

Anthony Carlisle

Tel              +44 (0)20 7638 9571

Mobile      +44 (0)7973 611888

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