Issue of Equity

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

27 October 2010

Issue of Equity

Further to the announcement issued on 31 August 2010 the Company has today issued and allotted 20,830,718 new Ordinary Shares ("Second Tranche Shares") pursuant to proposals described in a circular to shareholders dated 3 August 2010 and approved by shareholder resolutions passed at the AGM (the "Proposals"). Application has been made to have these shares admitted to trading on AIM. Admission is expected to take place, and dealings are expected to commence, on 3 November 2010. Following the issue of shares referred to above, a further 383,666,901 Second Tranche Shares to be issued pursuant to the Proposals remain unissued. These remaining Second Tranche Shares will be issued and allotted once FSA approval has been received for the issue of same. The date for admission to AIM of the remaining Second Tranche Shares will be announced in due course.

Following the issue of 20,830,718 Second Tranche Shares, the issued share capital comprises 847,792,203 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 847,792,203 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.

Enquiries:

Merchant House Group PlcJames HolmesTel: 020 7332 2200

Shore Capital and Corporate LimitedPascal KeaneTel: 020 7408 4090