Appointment of Administrators

COMPANY HEALTH GROUP PLC

Appointment of Administrators

3 March 2010

Company Health Group Plc (the "Company") announces that Jason Godefroy and Andrew Stoneman, Recovery & Reorganisation partners of MCR, have been appointed as the joint administrators of the Company.

The Company had expected to enter into a contract with a third party (the "Prospective Purchaser") for the sale of the Company's operating subsidiaries this week subject to resolving the outstanding winding up petition ahead of the court hearing of the petition on 26 February 2010. On 24 February 2010, Iain Mackinnon, on behalf of the Petitioners, agreed to a settlement proposal which would have allowed the Company to proceed with the proposed sale of the operating subsidiaries. However, on 25 February 2010, agreement to the settlement was withdrawn resulting in the withdrawal of the Prospective Purchaser from the proposed sale and which left the Board with no alternative but to appoint administrators.

The Board has made every effort to conclude a transaction over the last six months and a number of solutions had been considered. The Board appreciates the significant efforts made by the Prospective Purchaser and their advisers and the Company's staff and advisers with a view to concluding the proposed sale which would have benefitted all the Company's creditors, its employees and its shareholders.

 The Board has taken all the necessary steps to ensure that the value of its subsidiaries was protected and would like to thank shareholders, employees, suppliers and landlords who have been extremely supportive of the business.

Trading in the Company's ordinary shares on the AIM Market of the London Stock Exchange ("AIM") has been suspended since June last year. The listing of its shares on AIM will now be cancelled.

The Board of Directors

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