NO INTENTION TO MAKE AN OFFER

STATEMENT OF INTENTION NOT TO MAKE AN OFFERUNDER RULE 2.8 OF THE CITY CODE ON TAKEOVERS AND MERGERS

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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

FOR IMMEDIATE RELEASE

NO INTENTION TO MAKE AN OFFER FOR REDROW PLC ("Redrow")

18 October 2012

On 31 August 2012, Bridgemere Securities Limited ("Bridgemere"), Toscafund Asset Management LLP ("Toscafund") and Penta Capital LLP ("Penta") announced a possible cash offer for Redrow at 152 pence per Redrow share under Rule 2.4 of The City Code on Takeovers and Mergers (the "Code").

Each of Bridgemere, Toscafund and Penta confirms that discussions with Redrow and between themselves in relation to the possible offer have now been terminated and that none of them has a current intention to make an offer for Redrow.

Each of Bridgemere, Toscafund and Penta reserves the right to acquire Redrow shares, subject to, and in accordance with, the Code and other applicable regulations. For the purposes of Rule 2.8 of the Code, each of Bridgemere, Toscafund and Penta reserves the right to make or participate in an offer for Redrow (and/or take any other actions which would otherwise be restricted under Rule 2.8 of the Code) within the next six months following the date of this announcement:

(i) with the agreement or recommendation of the board of directors of Redrow;

(ii) following the announcement of an offer for Redrow by or on behalf of a third party;

(iii) following the announcement by Redrow of a "whitewash" proposal (see Note 1 on the Notes on Dispensations from Rule 9 of the Code) or a reverse takeover; or

(iv) where the Panel on Takeovers and Mergers has determined that there has been a material change of circumstances.

For enquiries please contact:

Barclays Bank PLCMark Warham, Managing Director Tel: +44 (0)20 7623 2323Derek Shakespeare, Managing Director

Pendomer Communications LLPCharles Armitstead Tel: +44 (0)20 3603 5224

A copy of this announcement will be available, subject to certain restrictions, for inspection on Bridgemere's website at www.bridgemere-group.co.uk, Toscafund's website at www.toscafund.com and Penta's website at www.pentacapital.com.