Issue of Equity

Merchant House Group Plc ("Merchant House" or the "Company")

16 July 2010

Issue of Equity

Merchant House announces that it has today issued 71,428,571 new ordinary shares of 0.01p each in the capital of the Company ("New Shares"). The New Shares have been issued at a price of 0.14p in cash per shareto Prism Nominees Limited raising net funds of £100,000 for the Company. The funds are for use in connection with the matters set out in the recent Chairman's letter to shareholders.

Application has been made today for the New Shares to be admitted to trading on AIM and dealings are expected to commence on 23 July 2010.

As a result of the issue of the New Shares, the issued share capital now comprises 352,382,587 Ordinary Shares. There are no shares in treasury and there is no other class of share in issue which has voting rights. Consequently the Company's total number of voting rights is 352,382,587 and this figure may 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 of the New Shares, Prism Nominees Ltd have notified the Company that they have a holding of 71,428,571 Ordinary Shares equivalent to 20.3 per cent. of the enlarged issued share capital of the Company.

Ends.

Enquiries:

Merchant House Group Plc

James Holmes

Tel: 020 7332 2200

Shore Capital and Corporate Limited

Pascal Keane

Tel: 020 7408 4090