Launch of New Equity Income Investment Trust

Launch of New Equity Income Investment Trust and

Gervais Williams assumes role as MD at MAM Funds plc

London, 3rd March 2011 - MAM Funds plc announces today the launch of a new equity income investment trust to be floated on the London Stock Exchange (LSE) in April. Known as The Diverse Income Trust plc (the "Company"), this new equity income fund will seek admission to the Official List and to trading on the London Stock Exchange's main market for listed securities ("Admission") in conjunction with a placing and offer for subscription of redeemable shares of fifty pence each ("Shares") to raise up to £50 million. 

This IPO is an important step in the next stage of MAM Funds plc's development. This week saw the completion of all elements of the transaction announced on 15th December, 2010, aimed at reinvigorating the strengths within the Group. The first part involved the raising of £20m of new equity to repay all debt in the company, since this had been constraining the ability of the business to invest for growth. Following the completion of the fundraising on 14th February 2011, MAM Funds plc now has a strong balance sheet with a net cash position, on which it can build in future.

The second part involved the strengthening of the management of the company with the appointment of Ian Dighe as Executive Chairman, Gervais Williams as Managing Director, and Graham Hooper as Distribution Director. This has now formally completed, with Gervais Williams joining as Managing Director. The third part involved growing the funds under management, both by highlighting the current success already in the Group, and also by supplementing this with new fund launches. This formally begins today with the announcement of the launch of The Diverse Income Trust plc.

Gervais Williams will manage The Diverse Income Trust plc. Gervais was the former Head of Smaller Companies at Gartmore and responsible for a number of investment trust clients including Gartmore Growth Opportunities plc, which he ran from March 1993, Gartmore Irish Growth Fund plc, which he ran from its inception in 1995, and Gartmore Fledgling Trust plc, which he ran jointly from 2001. The funds have picked up a number of awards for delivering premium returns for their shareholders over the period. In addition, Gervais Williams was awarded Investor of the Year twice in a row at the Grant Thornton Quoted Companies Award Dinner in January 2009 and 2010.

Gervais Williams, MD at MAM Funds plc, commented:

"Perhaps surprising to most investors, just 6 FTSE stocks generated almost 50% of the FTSE All Share Index dividend in Q4 2010, creating high stock specific risk as highlighted by the dividend cuts by BP and the leading UK retail banks.

"The Diverse Income Trust plc will be an All Cap Fund. It will be able to select the anticipated best income generators from a wide universe of shares in the FTSE 100, FT Mid Cap stocks and Small and Micro Cap sectors. The prospects for income growth within the small and microcap stocks, in particular, look attractive, since many are not distributing at present.

"This new fund will have a diverse portfolio of investments, the intention being for each to represent between 1 to 1.5% of the total portfolio, so it will be truly diversified, with low stock specific risk. Some micro-sectors are expanding in spite of a flat UK economy, and the new fund is expected to have exposure to those."

Fund highlights:

·; Issue Price: 50 pence per Share

Target Fundraising: £50m

Admission expected: April 2011

Initial Company NAV per share: 48.75 pence

·; The Company will be an income investment trust, which will target an initial annualised dividend yield of 4 per cent with a quarterly dividend

·; The Company will invest primarily in quoted UK companies with a long term bias towards small and mid caps

·; The management fee will be payable monthly in arrears and will be calculated daily at the rate of 1 per cent per annum of the Company's market capitalisation on the relevant day, with no performance fee attached

·; Annual redemption facility

. The Company will have an unlimited life

·; Cenkos Securities is sponsor and placing agent

For further information, please contact:

MHP CommunicationsEmail: [email protected]Gay Collins [email protected] +44 20 3128 8582Laura Batty [email protected] +44 20 3128 8520

MAM Funds plc

Gervais Williams, Managing Director [email protected] +44 78 1133 1824

Graham Hooper, Distribution Director [email protected] +44 78 3160 6850

Cenkos Securities plc

Will Rogers [email protected] +44 20 7397 1920

Charlie Ricketts [email protected] +44 20 7397 1910

Chris Lunn [email protected] +44 20 7397 1912

Not for publication, distribution or release in or to the United States, Canada, Australia, Japan or in any other jurisdiction where such publication, distribution or release would breach any applicable securities law or regulation

Important Information

This document is an advert and not a prospectus. It refers to a proposal under consideration but in respect of which no final decision has been taken and does not constitute or form part of any offer or solicitation to acquire any investment. Investors should not subscribe for or purchase any shares referred to in this announcement except on the basis of information contained in a prospectus that will be published if a final decision to proceed with the proposed listing is taken. MAM Funds plc is authorised and regulated by the Financial Services Authority. MAM Funds plc is registered in England No.05160210 and has its registered office at 10-14 Duke Street, Reading, Berkshire, RG1 4RU.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities law of any such jurisdiction.

In the event that the proposed listing proceeds, investors should note that the value of the shares may go down as well as up so you may get back less than you invested. This announcement does not constitute a recommendation concerning the Offer or the Placing. Potential investors should consult a professional advisor as to the suitability of the Offer or Placing.