Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

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

Accident Exchange Group plc

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

An acquisition or disposal of voting rights

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

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

X

An event changing the breakdown of voting rights

Other (please specify):

Initial disclosure as per the Disclosure & Transparency Rules (Disclosure of CFDs) Instrument 2009

X

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

Morgan Stanley

(Institutional Securities Group and Global Wealth Management)

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

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

01.06.09

6. Date on which issuer notified:

03.06.09

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

39%

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

GB00B00LL325

Below 3%

Below 3%

8,300

8,300

0.01%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

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

Convertible Bond

08Jan2013

10,277,152

Nominal

Delta

14.44%

Convertible Bond

08Jan2013

16,907,572

23.77%

Warrant

30Sep2011

718,571

1.01%

Total (A+B+C)

Number of voting rights

Percentage of voting rights

27,911,595

39.23%

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

Morgan Stanley Securities Limited 16,907,572 23.77%

Morgan Stanley & Co. International plc 10,995,723 15.45%

Quilter & Co. Limited 8,300 0.01%

Proxy Voting:

10. Name of the proxy holder:

N/A

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

N/A

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

N/A

13. Additional information:

The percentage threshold crossed has been calculated, in accordance with FSA guidance, using the existing issued share capital as the denominator and not the diluted share capital following any exercise of the Bonds.

14. Contact name:

Julia Holden

15. Contact telephone number:

020 7677 5468

Note: Annex should only be submitted to the FSA not the issuer

Annex: Notification of major interests in share

A: Identity of the persons or legal entity subject to the notification obligation

Full name 

(including legal form of legal entities)

Morgan Stanley

Contact address 

(registered office for legal entities)

1585 Broadway 

New York, NY 10036

Phone number & email

+1 212 7614000

Other useful information 

(at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name

Julia Holden

Contact address

Morgan Stanley

20 Bank Street

Canary Wharf

London, E14 4AD

Phone number & email

020 7677 5468

Other useful information

(e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

For notes on how to complete form TR-1 please see the FSA website.