Repayment of Preference Shares

MAM FUNDS PLC ("the Company")

REPAYMENT OF PREFERENCE SHARES

MAM Funds plc ('MMF'), the AIM quoted fund management company, announces that it has today repaid £5,527,405 of cumulative redeemable preference shares ("Preference Shares") held by Bank of Scotland plc. Following the repayment there remain £6,834,769 of Preference Shares and associated accrued interest.

The repayment has been made from cash resources generated by the sale of the iimia Wealth Management division on 25 January 2010.

RELATED PARTY TRANSACTION

Bank of Scotland plc is a substantial shareholder of the Company (as defined in the AIM Rules). The repayment of the Preference Shares held by it is therefore classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the directors of the Company, having consulted with the Company's nominated adviser, Arbuthnot Securities Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

Colin Rutherford, Executive Chairman, MAM Funds plc 07768 053 054

Roland Cross, Broadgate Mainland 020 7726 6111

Antonio Bossi or James Steel, Arbuthnot Securities Limited 020 7012 2000

(Nominated Advisor and Broker to MAM Funds)

Web: www.mamfundsplc.com