Acquisition of Compass Costs

Embargoed for release until 10.00am 2 April 2013

Quindell Portfolio Plc

("Quindell", the "Company" or the "Group")

Acquisition of Compass Costs

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to announce the acquisition of Compass Costs Consultants Limited ("Compass Costs"), one of the UK's leading legal costs consultancy and costs drafting firms.

Highlights

·; Acquisition of one of the UK's largest costs draftsmen for shares at a significant premium

·; Earnings enhancing in the current year and significantly earnings enhancing for 2014

·; Fast tracks Quindell's growth in this key legal services area

·; Ensures our legal operation now includes the largest costs practice in the UK

The terms of the acquisition were satisfied by the issue of 80,000,000 Quindell shares representing approximately 2% of the Group's issued share capital. Based on the agreed valuation of £14.0 million the transaction gives an implied value of 17.5p per Quindell share. The shares are subject to lock in of between 12 and 36 months from the date of issue. In return, Compass Costs has warranted a profit after tax of £2.0 million and operating cash flow of £1.5 million for the year ending 31 December 2013. The most recently filed accounts for Compass Costs, being for the year to 31 January 2012, showed record turnover of circa £6.4 million and profit before tax of circa £1.3 million. The acquisition is expected to be earnings enhancing in the current year and significantly earnings enhancing in 2014 due to the volume of costs work that the Group can direct to Compass Costs associated with its legal services volume, estimated at over £20 million per annum by 2014, making Compass Costs the UK's largest costs draftsmen.

As already one of the largest costs practice in the UK, Compass Costs operates across a broad range of legal case types, specialising in high value and clinical negligence costs recovery, as well as personal injury costs recovery and litigation. Compass Costs, which will operate as a division within Quindell Legal Services ("QLS"), will enable QLS to achieve its full potential by providing its services across the whole of QLS's portfolio of cases, and further enhance the Group's ability to deliver its insurance market offering maintaining its leading position in an evolving market place in light of the recent Ministry of Justice costs reforms and LASPO implementation.

Quindell has been working with Compass Costs since October 2012 and the operational model that will be in place following this acquisition has been running on test since the start of the current year. During this test period Quindell has validated the quality of the service provided, examined the operational savings, the excellent results obtained and also the strength of the team and business model moving forward that will enable Quindell to maintain its growth in this area, which otherwise would have been difficult to manage organically in the time available.

Rob Terry, Chairman and Chief Executive of Quindell said: "Compass Costs is already one of the UK's largest cost draftsmen, but with the benefit of our volume, it becomes the largest. Its operation is well respected in the industry for delivering value to its clients, and is both ethical and market leading in its approach. The acquisition has been completed in line with our stated strategy of only issuing stock at a premium to current market valuation and it is expected to be earnings enhancing in the current year and significantly earnings enhancing in 2014.

"Compass Costs operates in such a specialist area, that we could not expect to grow ourselves organically in such a short period of time, particularly as we continue to take on more of our own volume, This, combined with taking into account the proposed Ministry of Justice costs reforms and introduction of LASPO from 1 April 2103 were also key drivers towards the acquisition."

Phil Hodgkinson, Chief Executive of Compass Costs said:"With our detailed understanding of the legal services market it is clear to the board and shareholders of Compass Costs that Quindell has a winning formula, is gaining significant blue chip clients and has been undervalued by the market. As a result, we are very happy to accept our consideration based on shares at 17.5 pence and look forward to sharing in the benefit of the share price correction that we believe will occur once the Quindell model is more fully understood.

"Following the acquisition, Compass Costs will continue to focus on working with existing clients and commercial partners to provide legal services and costs solutions within the new post LASPO arena and will be hosting a series of exclusive presentations to its existing client base to include LASPO compliant funding solutions and documentation over the coming weeks. Operational control of Compass Costs will remain within the existing structure, with the Quindell Group supportive of the delivery of enhanced revenue and costs recovery to Compass Costs' existing client base."

Application has been made for the 80,000,000 new shares to be admitted to trading on AIM. Admission of the shares is expected to occur on 9 April 2013. Following Admission Quindell will have 3,758,775,910 ordinary shares in issue. The Company has no ordinary shares held in treasury. The total of 3,758,775,910 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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Notes to Editors:

About Quindell Portfolio Plc

Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors. Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million. Post gaining approval by the Solicitors Regulation Authority and the acquisition of our legal businesses in December 2012, including the law firm Silverbeck Rymer, Quindell finished 2012 with run rate revenue of more than £300 million.

Our Industry Sectors

In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.

Our Solutions

The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.

With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.

For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique and ethically based proposition for the insurance industry today.

Our Customers

Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.

Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.

For further information, please visit www.quindell.com