EB4U has instead opted for the Priory Partnership after a competitive pitch. The two-year brief involves media relations and a monthly newsletter distributed to 7,000 homes in the Brighton area.
Midnight Communications and Phoenix Community Publishing also pitched.
Although once EB4U's in-house department, East Communications has developed as a not-for-profit agency servicing other clients in the public sector.
EB4U deputy project director Sean Hambrook said: 'We are hoping to get out to local events more and set up more of our own events. We want to make it clear we are funding projects and, over the next two years, ensure that those projects are sustainable.'
EB4U has also enlisted Ruth Price, head of PR and events at Working Links - set up to reduce unemployment - as comms manager.