2008 Financial highlights Turnover up 8% to US$165.3 million (2007: US$153,2 million) Revenue down 3% to US$149.9 million (2007: US$155.2 million) Gross profit up 8% to US$55.4 million (2007: US$51.2 million) Loss before income tax US$57.3 million (2007: profit of US$9.5 million) Generated US$10 million in cash from operations (Cash used in 2007 of US$2 million) Cash of US$6.7 million (US$8.3 million as at 31 December 2007) Operational highlights As 31st of December 2008, the Group operated across 14 countries, the majority of which are situated in the emerging markets: Russia, Ukraine, Kazakhstan, Armenia, Tadjikistan, Uzbekistan, Turkey, India, Hungary, Greece, Romania, Bulgaria, Sweden, and UK. In 2008 the Group successfully completed 3 acquisitions: • One Media, a Swedish direct marketing agency, one of the leading direct marketing companies in the Nordic Region. • Elektrik, the Turkish events organizing agency, one of the fastest growing marketing communication services companies in the Turkish market. The agency was integrated under IMSG’s umbrella of event businesses branded One2Remember International. • EY ZHN, the Greek event agency, a leading event management and production company in the Greek market with activities in the Balkans, Russia and the Middle East. The Group operates across five principal areas: 1) Outsourced Sales & Trade Marketing: the Group has operations in Russia, India, Hungary, Romania and Turkey. Revenue decreased from US$45.1 million (2007) to US$30.7 million (2008), a variance of 32%. 2) Events and Consumer Marketing: the Group's revenue from Consumer Marketing decreased from US$82.7 million (2007) to US$54.5 million (2008), a variance of 34%. 3) Multi Channel Marketing: the Group's data driven businesses include IMS Interactive (internet projects), Eurocontact (call-centre), IRG (market research) and IMCA (market research). The Group’s revenue from this service area increased from US$11.1 million (2007) to US$29.6 million (2008), an increase of 166%. 4) Retail Marketing and Consultancy: IMS Retail - the Group’s business unit targeted at the fast growing retail trade sectors. The Group's revenue from Retail increased from US$12.2 million (2007) to US$19.7 million (2008), an increase of 62%. 5) PR and IR: the Group has continued to grow in this service area in 2008, following acquisitions made in 2007. The Group’s revenue for PR and IR has increased from US$5.4 million (2007) to US$18.7 million (2008), an increase of 248%.