Further Clarification Regarding Press Speculation

For release 7am 13 May 2013

Quindell Portfolio Plc

("Quindell", the "Company" or the "Group")

Further clarification regarding press speculation

At the start of last week we announced record results and guided that we were preparing for our full listing. Since this time we've seen significant share price turbulence which is not related in any way to the performance of the underlying business. The Board is aware of continuing press speculation regarding the equity swap and an active short position in relation to the Company's ordinary shares. The active shorters have also called into question the quality of the Group's debtors in relation to its outsourcing business as other companies in this sector have had issues in this area. In light of this, the Board wishes to provide further clarification that following its recently reported results, the Group has a strong balance sheet, good debtor controls and continues to trade profitably with significant traction in the insurance sector.

·; 2012 Results significantly ahead of market expectations

·; Equity swap does not expose Company to any further share issue or payment of cash

·; All shares related to equity swap already issued and included in basic EPS calculations

·; Equity swap related receivable of £13.3 million is only 6.6% of receivables at year end

·; Group will receive further cash from the equity swap once share price is at substantially higher levels

·; Outsourcing debtors represent c.90% of trade debtors and accrued income at 31 December 2012

·; Cash representing c.50% of outsourcing debtors at December 2012 collected in 4 months to April 2013

·; Strong balance sheet and debtor control underpins profitable growth and cash generation in 2013

·; Certain directors of the Company intend to acquire shares once permission has been received

The Board knows of no valid reason for the recent share price decline. Furthermore, the equity swap asset, which has also been subject to speculation, accounts for only a small part of the Group's receivables being £13.3 million of £202.3 million at 31 December 2012 and is not a material contract in relation to the size of the Group. Included within trade and other receivables, as well as the equity swap of £13.3 million, was the deposit payment for Accident Advice Helpline of £19.8 million which is now no longer in other receivables as the acquisition was completed in April 2013 and this amount is therefore now included in the balance sheet as a cost of acquisition.

Of the remaining £169.2 million receivables in the Group balance sheet on 31 December 2012 it should be noted that £127.0 million of acquired receivables were added to the balance sheet during the year. The two largest contributors to added receivables were Ai Claims Solutions Plc at £61.3 million when the business was acquired in April 2012 (reduced significantly by the year end following our strong cash collection and circa £11 million of block settlements completed during 2012 with no net write-downs compared to invoice values) and Quindell Legal Services, which incorporates our legal businesses, acquired within a week of the year end date which also added £61.3 million comprising trade debtors, accrued income and associated legal disbursements. The balance of the £169.2 million is primarily made up of the receivables from the other claims outsourcing businesses.

Our average debtor days at 31 December 2012 is circa six and a half months which is exceptionally good for our industry and is only possible due to the strong relationships we have with our insurance clients and the ethical stance we take by lowering the cost of claims for the industry as a whole, targeting over 20% saving compared to industry norms. Other claims management companies, which have taken a less ethical stance, have had problems with collections with debtor days averaging at some points nearer two years but we have never experienced this issue, nor have Ai Claims Solutions or the businesses contained within Quindell Legal Services during the last ten years. This is due to our combined ethical approach which is clearly understood by our clients and demonstrated by our average debtor days.

Post year end performance

The strength of our balance sheet and quality of our debtor control is further demonstrated by the fact that between 31 December 2012 and 30 April 2013 we had already collected circa half of the debtor levels outstanding at the year end that were associated with the claims outsourcing businesses. This level of performance within debtor control is in line with our own internal plans. We have had particularly strong performance with Ai Claims Solution Plc debtors, an area the shorters have focused on and where they have made comparisons to other less ethical claims businesses. The Group has already collected circa two thirds of the level of these debtors during the course of normal trading during 2013. This has been achieved without the benefit of further block settlements (which are only accepted without net write-downs) and which we anticipate benefitting from during the remainder of the 2013.

Equity swap

The equity swap was issued as part of the funding for the acquisition of Accident Advice Helpline, announced on 3 December 2012 and was deemed to be the least dilutive funding mechanism then. The additional amount of cash to be received by the Group from the equity swap is dependant on the performance of our ordinary shares over the periods in which the swap is in operation. The swap was based on a 17.5p share price so the amount of cash the Company will receive from its £13.3 million remaining receivable will be proportionate to the Company's average share price compared to 17.5p during such periods as the swap operates. The equity swap is not currently operating and as of Friday 10 May 2013 the Company has agreed with the counterparty that the swap will not operate until the Company requests its reactivation, which it does not intend to do until the share price is at substantially higher levels.

For the avoidance of doubt there are no circumstances under which the Company would have to issue more shares pursuant to the equity swap or have to pay out any further cash regardless of the performance of the equity swap. All shares in relation to the equity swap were issued upfront and are therefore already included in basic EPS calculations.

Director shareholding

The Directors are currently in a close period pursuant to the AIM rules as the Company has not yet published its annual report. As soon as this close period has ended or should the Company, through its nominated adviser, obtain permission for Directors to trade, the Directors intend to buy ordinary shares in the Company.

Conclusion

The Group has a strong balance sheet, excellent debtors control, more than sufficient funding and no reliance on receiving any further cash from the equity swap to be able to fund its growth to meet market expectations in 2013 and beyond. The Directors are not aware of any valid reason for the recent share price drop other than misinformed speculation and shorting activity.

For further information:

Notes to Editors:

About Quindell Portfolio Plc

Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors. Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million. Post gaining approval by the Solicitors Regulation Authority and the acquisition of our legal businesses in December 2012, including the law firm Silverbeck Rymer, Quindell finished 2012 with run rate revenue of more than £300 million.

Our Industry Sectors

In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.

Our Solutions

The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.

With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.

For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique and ethically based proposition for the insurance industry today.

Our Customers

Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.

Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.

For further information, please visit www.quindell.com