Director Shareholding

AIM: MERC

MERCHANT SECURITIES GROUP PLC

("Merchant Securities" or "the Company")

Director Shareholdings

Merchant Securities, the financial services group, announces that the Board today approved the grant of options over the Company's ordinary shares, under the terms of the Merchant Securities Group plc Executive option scheme, and that the trustees of the Merchant Employee Benefit Trust ("EBT") have allocated a proportion of the ordinary shares of 1p each in the Company ("Shares") held by the EBT to Directors of the Company.

The Board has granted options over 550,000 ordinary shares ("Options") to Patrick Claridge, Chief Executive of the Company. The Options have been granted at 30p per share, representing a premium of 25 per cent. over the closing middle-market price on 22 July 2010. The Options vest as to one third on the first anniversary of the date of grant, one third on the second anniversary of the date of grant and the balance on the third anniversary of the date of grant. Upon vesting, the Options are exercisable until 22 July 2020.

Following the grant of these Options, Mr Claridge holds options over the following ordinary shares in the Company:

In addition, Mr Claridge and Mr Foster-Powell, Chief Financial Officer of the Company, have been allocated 87,500 and 18,750 Shares, respectively, as part of the deferred equity element of an incentive award made by the Remuneration Committee, currently held by the EBT, relating to the financial performance of the Company in the year ended 31 March 2010. These Shares will be held by the Trustees of the EBT as nominee and will transfer on the second anniversary of the date of allocation.

Following the allocation by the EBT, Mr Claridge and Mr John Foster-Powell will be beneficially interested in 2,735,528 and 618,750 ordinary shares of 1p each respectively, equivalent to 5.83 per cent. and 1.32 per cent. of the issued share capital of the Company, respectively.