Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

Merchant Securities Group plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

Yes

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

No

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

No

An event changing the breakdown of voting rights

No

Other (please specify):

No

3. Full name of person(s) subject to thenotification obligation: iii

Gartmore Investment Limited

4. Full name of shareholder(s)  (if different from 3.):iv

Fund Managing Company

Gartmore Fund Managers Limited

Shares held: 3,020,000

% of issued share capital: 6.435%

UK Registered owner: HSBC Global Custody Nominee Limited

Beneficial owner: Gartmore Fund Managers Limited A/C Gartmore UK & Irish Smaller Companies

Fund Managing Company

Gartmore Investment Limited

Shares held: 3,047,005

% of issued share capital: 6.493%

UK Registered owner: Vidacos Nominees Limited A/C 2303

Beneficial owner: The Alphagen Volantis Fund Limited

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

4th February 2011

6. Date on which issuer notified:

7th February 2011

7. Threshold(s) that is/are crossed: vi, vii

13%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

GB000B1FRQG0

6,117,005

6,117,005

6,067,005

6,067,005

12.928%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

N/A

N/A

N/A

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

6,067,005

12.928%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will ceaseto hold:

12. Date on which proxy holder will cease to holdvoting rights:

13. Additional information:

All figures are based on the Company's issued share capital of 46,930,602 as provided by Exshare

E mail contact [email protected]

14. Contact name:

RDU

15. Contact telephone number:

0207 782 2324