Corporate update

NBNK Investments plc

('NBNK' or the 'Company')

Corporate update

Following its renewed offer to Lloyds Banking Group ('LBG') for the acquisition of the Verde asset package, the Company announces that it was unable to find a way forward on the transaction that would have been in the best interests of NBNK's shareholders and that is acceptable to LBG.

Accordingly, the Company today announces that all discussions which could have led to an acquisition of banking assets constituting a reverse transaction under the AIM Rules have now terminated. Consequently, trading in the Company's shares will be restored as the Company is no longer in contemplation of a reverse takeover.

NBNK has had strong and patient support from its investors. It prepared three offers for retail banking assets which it considered to be compelling both financially and operationally. The Company undertook a level of due diligence on each proposal that was essential to ensure that the offers would have created long term value for its shareholders.

The Directors of NBNK have concluded that there are no other UK banking assets available for sale that would meet the Company's objectives and, consequently, they expect to commence steps to wind-up the Company. This is consistent with the prospectus issued at the time of admission to AIM in August 2010, which states that if the Company was unable to fulfil its strategic mandate then it will be wound-up and any remaining cash would be returned to shareholders. As part of this process the Company will seek cancellation from AIM.

Whilst a significant proportion of the Company's initial capital has been expended, particularly during the elongated Verde bidding process, it is envisaged that the cash returned to shareholders will be nearly 40% of that initial capital.

Commenting on the cessation of bidding activities, NBNK's Chief Executive, Gary Hoffman, said: "We are disappointed that the door has now been closed on this opportunity, with the result that we will be unable to deliver our vision of banking, bringing a vibrant new challenger to the high street, devoted to providing the level of service that customers want and deserve."

"We would have provided more local decision making, flexible opening hours, new modern systems and a guarantee of no short term bonuses - everything we believe that people want."

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