Further re: Pritchard Stockbrokers Limited

16 February 2012

Merchant House Group plc

("MHG" or the "Group")

Further re: Pritchard Stockbrokers Limited

Further to the announcement made by the Group on 13 February 2012 regarding Pritchard Stockbrokers Limited ("Pritchard"), the board of MHG wishes to inform shareholders that, following discussions with the Financial Services Authority ("FSA"), as a result of the first supervisory notice issued to Pritchard on 10 February 2012, we are awaiting further news on the possible implications and therefore we cannot at this time determine whether clients of Merchant Capital may suffer some economic loss.

For further information:

Merchant House Group plc +44 (0) 20 7332 2200

Christopher Day, CEO

James Holmes, Chairman

Cairn Financial Advisers LLP +44 (0) 20 7148 7900

Liam Murray / Avi Robinson

Symvan Securities +44 (0) 20 7464 4260

Kealan Doyle / Nicholas Nicolaides

CityRoad Communications +44 (0) 207 248 8010

Paul Quade