RNS Number:3449P
Prestbury Holdings PLC
03 September 2003


Prestbury Holdings PLC
3 September 2003

               Prestbury Holdings PLC ('Prestbury' or 'the Company')

                                    Placing

Prestbury Holdings PLC has raised #2.5 million before expenses through the placing of 2,777,778 new ordinary shares of 
5p each at a price of 90 pence per share, in an offering arranged by Durlacher which was oversubscribed. The funds, 
raised through a placing with institutional investors, will provide additional working capital for the Company.

Francis Maude, Chairman of Prestbury, said: "We believe that Prestbury's new model of low cost financial services 
distribution represents the way of the future.  Evolving consumer preferences and regulatory change mean that the old 
model is under intense pressure, which is likely to increase in the months ahead.  This placing allows Prestbury to face
the challenges and embrace the opportunities that lie ahead with confidence and enthusiasm."


Lee Birkett, Chief Executive Officer, said: "Our revenues are progressing in line with expectations, and there are 
opportunities aplenty to expand further.  We are looking to recruit many more financial intermediaries who are choosing 
to transact their low risk business (life assurance, mortgages and loans) through our low cost electronic Solution 
Network platform.  The conventional IFA networks, with regulatory obligations and a business model attuned to the 
selling of higher risk investments products, no longer provide a cost-effective vehicle for the distribution of low risk
product.  Prestbury's recent agreement with FSAS, a Scottish IFA network, for them to transact their low risk business 
through Solution Network, illustrates the way ahead."


"In addition there are many more opportunities for Prestbury's consumer division, Moneybrain, to expand through white 
label and joint marketing ventures such as those with the Telegraph Group and the Express Group announced in recent 
months.  All these expansion opportunities carry up-front development costs and require us to have access to working 
capital.  We're delighted to have taken the chance to raise additional equity capital so that we can pursue the 
opportunities whole-heartedly."


"Furthermore the FSA has made clear that under the new regulatory regime being rolled out in 12-18 months time 
distributors will need a significant sum in regulatory capital.  This fund-raising puts Prestbury ahead of the game by 
securing that regulatory capital well before it is needed."


"I would like to welcome the new institutional shareholders onboard and look forward to working with them during these 
exciting times at Prestbury"

The placing is conditional upon admission of the new shares becoming effective on or before 4 September 2003 (or such 
later date as the Company and Durlacher Limited may agree, being no later than 18 September 2003).

Application has been made for the new ordinary shares to be admitted to trading on the AIM Market of the London Stock 
Exchange with dealings expected to commence on Thursday 4 September 2003. The new ordinary shares will rank pari passu 
in all respects with the existing shares in issue.

Pursuant to sections 324 to 328 of the Companies Act 1985 and rule 15 of the AIM Rules the following information falls 
to be disclosed.

                                          % of Original   % of Enlarged
                             Shareholding         ISC             ISC
Directors:

Lee Birkett                     8,353,125        58.11%          48.70%
Stephen Keenan                  2,784,375        19.37%          16.23%
Francis Maude                     126,500         0.88%           0.74%
Robert David Anderson               2,500         0.02%           0.01%
Keith Lycett                        2,500         0.02%           0.01%

Other Notifiable interests:

BRIT Insurance Holdings Plc     1,117,500         6.52%          6.51%
New Opportunities Trust plc       937,500         6.52%          5.47%
Principal Corporate Inv Plc       737,250         5.13%          4.30%
ISIS Equity Partners Ltd          670,000         0.00%          3.91%
Laing & Cruickshank Inv Mgmt      650,000         0.00%          3.79%






For further information, please contact:

Lee Birkett
Chief Executive Officer                              01625 591401
                                                     077 20101536

Durlacher Limited
Matthew Robinson/Jonathan Retter                     020 7459 3600

Public Relations:
Sara Pearson
The SPA Way                                           020 7928 2626


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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