Issue of Equity

28 July 2011

Merchant House Group plc

("MHG" or "the Company")

(LSE: MHG.L)

Issue of Equity

MHG, the financial services group, is pleased to announce that it has raised £786,750 (before expenses) by way of a placing of 542,586,200 new ordinary shares of 0.01 pence per share in the Company (the "Placing Shares") at a price of 0.145 pence per share (the "Placing Price") with new investors (the "Placing"). The Placing Price represents a discount of 25.64 per cent. to the closing mid-market share price on 27 July 2011. The proceeds of the Placing will be used by MHG to support the growth and development of the business.

The Placing is conditional on admission to trading of the Placing Shares ("Admission") and an application has been made for the Admission of the Placing Shares to trading on AIM which is expected to occur on 3 August 2011. The Placing Shares, which will be issued fully paid, will rank pari passu in all respects with the existing ordinary shares of the Company.

As a result of the issue, the total number of voting rights as at 3 August 2011 will increase to 2,337,105,023. This figure should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FSA's Disclosure and Transparency Rules.

Following the issue, allotment and Admission of the Placing Shares, the following shareholders will, where known, be interested in three per cent. or more of the enlarged issued share capital of the Company as follows:

George Cadbury 6.2%

MAM Funds 5.9%

James Holmes, Chairman of MHG commented,

"We are pleased to raise funds in the current economic environment from an investor base which understands our business model. These new funds will be used as capital to grow and develop key elements of our business. We look forward to updating the market with progress in due course."

- Ends -

About Merchant House Group Plc

Merchant House Group is a new form of corporate banking and financial services group that uses its intellectual capital, agility and mercantile ability to challenge competitors' conventional approach and deliver a high level of service to its clients. This new approach is allied to strong risk management and corporate governance controls on a sound capital footing to enable the group to realise its full potential.

Merchant House Group plc is a London Stock Exchange AIM-listed holding company.

For further information about Merchant House Group and its corporate finance, investment and private client services divisions, please visit the company website at www.merchanthousegroup.com