Extension of Trading Plan in Lloyds Banking Group

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL

1 June 2015

UK Financial Investments Limited ("UKFI")

Intention to continue selling shares in Lloyds Banking Group plc through Trading Plan

UKFI today announces that it intends to continue to sell part of Her Majesty's Treasury's ("HMT") shareholding in Lloyds Banking Group plc (the "Company") over the coming months pursuant to an extension of the pre-arranged trading plan originally announced on 17 December 2014 (the "Trading Plan"). The Trading Plan will continue to be managed by Morgan Stanley & Co. International plc ("Morgan Stanley"). Under the Trading Plan, Morgan Stanley will have full discretion to continue to effect a measured and orderly sell down of shares in the Company on behalf of HMT.

Following the extension, the Trading Plan will now terminate no later than 31 December 2015. The plan continues to include a provision that up to, but no more than, 15% of the aggregate total trading volume in the Company may be sold over the duration of the trading plan. The actual number of shares sold under the Trading Plan will depend on market conditions, among other factors. As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share paid for them.

From the period beginning on 17 December 2014 to 29 May 2015, approximately 4.2 billion ordinary shares have been sold under the Trading Plan at an average price of greater than 80p per share. HMT currently owns approximately 13.6 billion ordinary shares in the Company, which represents just under 19% of the issued ordinary share capital of the Company.

J.P. Morgan Cazenove is acting as Privatisation Strategy Adviser to UKFI. Freshfields Bruckhaus Deringer LLP is acting as Legal Counsel to UKFI in respect of English and US law.

Contact:

UKFI Communications: George Trefgarne +44 (0) 20 7379 5151

This press release is for information purposes only and does not constitute or form a part of an offer to sell or a solicitation of an offer to purchase any security of the Company in the United States or in any other jurisdiction where such offer or solicitation is unlawful. The securities of the Company described in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any applicable state or foreign securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. There shall be no public offering of securities in the United States or any other jurisdiction.

J.P. Morgan Limited (which conducts its UK investment banking business under the name J.P. Morgan Cazenove) and is authorised and regulated in the United Kingdom by the Financial Conduct Authority, J.P. Morgan Securities plc (which conducts its UK investment banking business under the name J.P. Morgan Cazenove), Morgan Stanley & Co. International plc and Morgan Stanley Securities Limited (together with J.P. Morgan Cazenove, the "Banks"), which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, are acting on behalf of HM Treasury and UKFI and no one else in connection with the trading plan and will not be responsible to any other person for providing the protections afforded to any of their respective clients or for providing advice to any other person in relation to the trading plan. Neither of the Banks will regard any other person as its client in relation to the trading plan. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by either of the Banks or by any of their respective affiliates or agents as to or in relation to, the accuracy, completeness or sufficiency of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers in connection with HM Treasury, UKFI, the Company, the trading plan or any of arrangements described herein, and any liability therefore is expressly disclaimed.