Holding(s) in Company

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:

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 the notification 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 6.440%

UK Registered Owner HSBC Global Custody Nominee UK Ltd

Beneficial Owner Gartmore Fund Managers Ltd A/c Gartmore UK & Irish Smaller Companies

Fund Managing Company Gartmore Investment Limited

Shares held 3,097,005

% of Issued Share Capital 6.604%

UK Registered Owner Vidacos Nominees Ltd A/c 2303

Beneficial Owner The Alphagen Volantis Fund Limited

5. Date of the transaction (and date on which the threshold is crossed or reached if different):v

22nd September 2010

6. Date on which issuer notified:

23rd September 2010

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

14%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type of shares if possible using the ISIN CODE

Situation previous to the Triggering transaction

Resulting situation after the triggering transaction

Number of Shares

Number of Voting Rights

Number of shares

Number of voting rights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

GB000B1FRQG0

7,499,505

7,499,505

6,117,005

6,117,005

13.043%

B: Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Expiration date xiii

Exercise/ Conversion Period/ Date xiv

Number of voting rights that may be acquired if the instrument is exercised/ converted.

% of voting rights

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

Resulting situation after the triggering transaction

Type of financial instrument

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

% of voting rights

6,117,005

13.043%

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

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease to hold:

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

13. Additional information:

All figures are based on the Company's issued share capital of 46,897,270 as provided by Exshare

E mail contact [email protected]

14. Contact name:

RDU

15. Contact telephone number:

0207 782 2224