Convertible Loan Note Issue and Portfolio Update

EW Group Limited

("EW Group" or "the Company")

Issue of convertible loan notes to raise £375,000 and

Portfolio update

The board of EW Group is pleased to announce that is has secured the investment of a further £375,000 pursuant to the loan note instrument constituted and first issued in October 2012. The Company is also pleased to provide an update on the progress of one of its investee companies, European Wealth Management Group plc ("European Wealth").

Fundraising

The Board is pleased to announce that a further £375,000 has been raised by the Company through the issue, at par for cash, of 2 year 10% convertible loan notes under the Company's existing loan note instrument, as described in the Company's announcement on 19 October 2012 ("EWG Loan Notes"). This takes the aggregate issue of EWG Loan Notes to £1.0 million, following the issue of £450,000 on 19 October 2012, £125,000 on 31 October 2012 and £50,000 on 27 November 2012. The Board does not envisage raising any further funds on the terms of the EWG Loan Notes.

£275,000 of the proceeds of the EWG Loan Notes have been lent to European Wealth under a short term unsecured loan attracting 10 per cent. interest p.a. ("Short Term Loan") which is substantially the same terms as the previous non-convertible loans made by EW Group to European Wealth in the first half of 2012. This will provide European Wealth with additional working capital. The balance of the fundraising has been retained by the Company for general working capital.

Related Party Matters

Under AIM Rule 13, the Short Term Loan is a related party transaction by virtue of Kishore Gopaul, a director of the Company, also being a shareholder and director of Courvoisier & Associés S.A., a 30.9 per cent. shareholder in European Wealth.

The independent directors of the Company, having consulted with Daniel Stewart & Company, the Company's nominated adviser, consider the terms of the Short Term Loan to be fair and reasonable insofar as EW Group's shareholders are concerned.

Update on European Wealth

European Wealth is a fast growing private wealth management business providing investment management and financial planning services with multiple offices across the Southern Counties of the UK. 

EW Group first invested in European Wealth in April 2012, at which time European Wealth had approximately £155 million of contracted assets under management ("AUM"). That has now increased nearly fourfold to more than £0.6 billion, with the expectation of at least a further £100 million of AUM to be added over the following 6 months.

The carrying value of the Company's holding in European Wealth in the last set of accounts was approximately £0.92 million. As a result of the strong performance of European Wealth during 2012 and early 2013, the Board expects to increase this carrying value significantly and is currently undertaking an exercise to revalue its investment in European Wealth for inclusion in the audited report and accounts of EW Group Limited for the year ended 31 December 2012.

EW Group Limited

Paul Everitt: +44 (0)14 8173 2888

www.ewgrouplimited.com

Daniel Stewart & Company Plc - Nominated Adviser and Broker

Antony Legge, Director, Corporate Finance: +44 (0)20 7776 6550

GTH Communications

Toby Hall: +44 (0)20 3103 3903

Suzanne Johnson Walsh: +44 (0) 20 3103 3902