New Long Term Incentive Awards

Lighthouse Group plc

("Lighthouse" or the "Group")

New Long Term Incentive Awards

Lighthouse Group plc (AIM: LGT) announces that it has adopted a new Long Term Incentive Plan ("LTIP"), to replace certain share options previously issued under the approved and unapproved share option schemes, with the objective of attracting, motivating and retaining key staff over the long term. Initial grants pursuant to the LTIP have been made today.

Background

The Company's Remuneration Committee has, in consultation with external advisers, created a management incentive scheme designed to incentivise delivery of the Company's growth objectives. Annual awards in the form of options over Ordinary Shares or conditional shares ("Awards") will be granted to the Executive Directors of up to 150% of salary, as at the date of grant.

Vesting of any Award will be based upon certain objective performance conditions, to be set by the Remuneration Committee at the time of grant.

The maximum number of new ordinary shares that can be issued under the LTIP and the Company's other employee share plans is capped at 15% of the Company's issued share capital within a 10 year period.

The LTIP contains provisions in respect of vesting and exercise of options for variations in the share capital of the Company and for a change in control.

Further details of the LTIP will be included in the Group's next Annual Report.

Grant of Awards

On 10 December 2015, Lighthouse granted Awards comprising a total of 6,400,000 new options over new ordinary shares in the Company to its three Executive Directors. These Awards will vest after three years subject to continued employment and the meeting of objective performance conditions, outlined below. The Awards are exercisable at a price of 1 pence per new Ordinary Share.

Half of the Awards are subject to an earnings per share ("EPS") performance condition. The threshold vesting (20% of this part of the Award) will be at 0.7p EPS in the year to 31 December 2017 and full vesting will take place at 1.4p EPS for that year with straight-line vesting in between these points. The EPS figure used at both the start and end of the performance measurement period would be an adjusted EPS figure, calculated after a normalised tax charge. The adjusted EPS charge for 2014 was 0.35p.

The remaining half of the Awards are subject to a total shareholder return (share price performance plus dividends added back) performance condition. Threshold vesting (again for 20% of this Award) will be at 14p for the measurement period ending three years after the date of grant of the options, with full vesting at 22p and straight-line vesting in between these points.

The following Awards to Executive Directors were today granted:

At the same time as these Awards were made, all previous Awards held by the Executive Directors, outlined below, which were granted in 2007-2008, were cancelled.

Note: "Approved" and "Unapproved" refers to the tax status of the option schemes.

Kenneth Paterson does not have any options, either approved or unapproved, under existing arrangements. All other Awards granted under the approved and unapproved share options schemes remain in place.

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About Lighthouse Group plc

As one of the UK's largest autonomous financial advice and wealth management Groups and winner of FT Business's Large IFA of the Year Award for three years in succession 2010-2012, Lighthouse provides a comprehensive range of services to businesses and individuals and is retained by most of the major trades unions and other affinity groups to advise their combined memberships of over 5 million members.

Lighthouse has been listed on AIM since 2000 and presents an integrated financial services company for investors, coupled with significant scale in terms of distribution through financial advisers and wealth managers and its fully diversified business model.

The Group aims to increase its relationships with and the benefits it derives from its relationships with affinity groups and professional partners.

In April 2014 Lighthouse announced the launch of its Lighthouse Pensions Trust ("LPT"), an unbundled multi-employer Master Trust product that provides a cost-effective and one-stop shop service to enable small- and medium- sized enterprises ("SMEs"), under the Group's Lighthouse Workplace Solutions ("LWS") branded service. Some 1.8 million SMEs are required to establish auto-enrolment compliant pension schemes for their employees between July 2015 and March 2018. LPT utilises target date funds managed by Alliance Bernstein, which manages $486 Billion of funds world-wide and is 63 per cent. owned by AXA, with a subsidiary of Eversheds acting as the corporate trustee.

In June 2014 the Group announced an extension of its LWS offering with the launch of the Lighthouse Life Trust, again an unbundled multi-employer occupational Master Trust product that enables those businesses that have agreed to adopt LPT to meet their auto-enrolment obligations to provide death-in-service life assurance cover for all of their employees aged between 16 and 65, for the same cost per benefit, at very competitive rates, regardless of age, gender, location or pre-existing medical conditions. The scheme is underwritten by Zurich Assurance Limited with Bridge Trustees as corporate trustee.

Lighthouse operates from its headquarters in London as well as having principal operating offices in Stockport and Woodingdean, near Brighton.

For more information please visit: http://www.lighthousegroup.plc.uk/