New National IFA Brand

Lighthouse Group plc

('Lighthouse' or 'the Group)

Financial Adviser Awards: Large IFA of the Year

New National IFA Brand

Lighthouse Group Plc (AIM:LGT) today announces that it intends to create a new National IFA brand, to simplify its Network branding, and to reduce the number of regulated entities within the Group.

This will allow greater focus on growing the Group's activities, as well as harmonising the considerable expertise currently residing within Lighthouse's operating entities. The combined effect is expected to improve the Group's service and operating efficiency levels, and better position Lighthouse for implementation of changes stemming from the Retail Distribution Review. The main structural changes are outlined below.

Lighthouse Financial Advice

LighthouseTemple and LighthouseGP, the Group's two existing National brands will merge to form a single new brand, Lighthouse Financial Advice. This new National brand, with over 250 advisers, will combine the growing volumes of business especially deriving from the members of affinity groups, unions, large employers and other specialist organisations currently served by both existing nationals.

Lighthouse Financial Advice will combine the skills and professionalism of all the existing advisers with a merged management team, and together they will position Lighthouse Financial Advice as a major force in UK financial advisory services.

The merger will be completed on 1 December 2010. As of that date all advisers in both divisions will trade under the Lighthouse Financial Advice brand.

Merger of Regulated Entities

Lighthouse continues to seek to improve processes, technology and services to advisers across the Group. Combining various Group-wide income collection systems, removing competing technological solutions, and reducing the number of regulating entities, will together ensure consistency of service levels and removal of duplication in underlying processes.

Accordingly, from 31 March 2011 onwards, all advisers currently regulated by Falcon Group Plc and LighthouseXpress Limited will instead be regulated by a single entity to be known as Lighthouse Adviser Services Limited. The terms for all registered individuals and appointed representatives will remain unchanged and advisers using the Falcon trading brand will be able to continue doing so.

Advisers in both of these regulated entities should be minimally affected other than by minor disclosure changes to their stationery from 31 March 2011.

LighthouseFSAS will continue to operate as a separate regulated entity so the registered individuals and appointed representatives in this division are not affected by this announcement.

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About Lighthouse Group plc

Lighthouse Group is one of the largest financial adviser groups in the UK, with over £6 billion of funds under advice. The Group is cash generative, profitable and dividend paying.

Lighthouse Group provides support to in excess of 800 IFAs across the UK who, in turn, provide financial planning advice to both private and corporate clients via its operating divisions.

On 21 April 2010, Lighthouse Group was named the Large IFA of the Year at the 2010 Financial Adviser Awards.