Proposed Acquisition of Arbuthnot Securities

9 November 2011

Westhouse Holdings PLC

Proposed Acquisition of Arbuthnot Securities

Westhouse Holdings PLC ("Westhouse" or the "Group") (LSE: WHL), the corporate and institutional stockbroking group, is pleased to announce the agreement of Heads of Terms to acquire Arbuthnot Securities Limited ("Arbuthnot Securities"), the investment banking subsidiary of Arbuthnot Banking Group PLC (LSE: ARBB). Completion is subject to contract, further due diligence and approval of the FSA.

Full details of the transaction will be made available in due course, as appropriate.

Rationale for the Acquisition

The directors of Westhouse ("Directors") believe that the combined businesses will provide an enhanced service to clients and improved returns for shareholders. Furthermore, they believe that there will be further opportunities for consolidation in the corporate broking sector and that Westhouse is well placed to benefit from these.

Current trading and prospects

As stated in the Westhouse interim results announced on 8 September 2011, market conditions are challenging and this is expected to continue for the remainder of this year and into next.

The growth in numbers of corporate clients has continued since 30 June 2011 and will be materially enhanced by this transaction. The Directors are confident that the enlarged business will benefit from greater critical mass and an improvement in the recurring revenue to cost ratio.

Garth Milne, Chairman of Westhouse, commented:

"It is clear that there is overcapacity in the small to medium sized company corporate broking and advisory market and that, as a result, consolidation is a strategic opportunity. Arbuthnot Securities enjoys a strong franchise and is highly complementary to Westhouse. We are confident that the proposed transaction will be favourably received by corporate clients, institutional clients and the shareholders of both companies. We look forward to welcoming very warmly our new colleagues and to further developing our position as a strong, integrated advisory business."

Notes to editors

Westhouse Holdings PLC

Westhouse is a corporate and institutional stockbroking group with particular sectoral expertise in natural resources, investment funds, UK industrial and environmental technology. Regionally the group's clients have significant exposure in Europe, Africa, Central Asia and China. Through its subsidiary Smith's Corporate Advisory, Westhouse has a strong focus on widening share ownership for quoted companies of all sizes.

Westhouse Securities is authorised and regulated by the FSA, is a member of the London Stock Exchange, a NOMAD for AIM listed companies and a Sponsor of Official List companies. Smith's Corporate Advisory is authorised and regulated by the FSA.