Mr. Michael Sifton reports

DATA GROUP ANNOUNCES CANCELLATION OF RIGHTS OFFERING AND UPDATED OUTLOOK

The Data Group Ltd.'s previously announced rights offering to the holders of common shares of the company has been cancelled and will not proceed. The standby commitment from, and potential private placement of common shares to, Michael Sifton in connection with the rights offering will similarly not proceed.

The company's decision to cancel the rights offering was taken as part of its continuing review of Data Group's capital structure, the company's results of operations and the recent decline in the price of the company's common shares. In connection with that review, the company is considering a range of alternatives intended to improve Data Group's financial flexibility and its capital structure in order to better position the company for long-term growth. Initiatives relating to strengthening the company's balance sheet may include refinancing or redeeming the company's outstanding 6-per-cent convertible unsecured subordinated debentures, and refinancing the company's bank borrowings and equity issuances. No decision with respect to any such alternative has been taken by the company. Data Group believes that its existing cash resources and projected cash flows from operations will be sufficient to finance its currently projected operating requirements, and that it will continue to remain compliant with its covenants and other obligations under its credit facilities.

The company also announced that management has revised its financial targets for 2015 in light of its year to date and projected results of operations for the remainder of 2015. The company is withdrawing its outlook regarding 2015 net income and return on shareholders equity. The company's targeted revenues for 2015 are largely consistent with its 2014 consolidated revenues. Targeted debt reduction remains consistent at approximately $10-million.

"As the company continues its capital structure review, we feel that it is important to focus on alternatives that will position the company for long-term growth, and our board and senior management team remain committed to that process," said Mr. Sifton, president and chief executive officer of Data Group.

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