Sale of Pensions Administration business

Lighthouse Group plc

("Lighthouse" or the "Company")

Financial Adviser Awards: Large IFA of the Year

Sale of Pensions Administration business for £1.85 million

Lighthouse Group plc (AIM:LGT) announces that it has today completed the sale of its pensions administration business, which trades as "City Pensions/City Trustees", to Mattioli Woods plc ("Mattioli Woods") (AIM: MTW).

The transaction involves the sale to Mattioli Woods of the entire issued share capital, together with the trade, assets and staff of two former Lighthouse subsidiary companies, City Pensions Limited and City Trustees Limited. The business's staff and operations will be retained by Mattioli Woods and will continue to operate in London.

City Pensions/City Trustees currently administers 965 self-invested personal pensions ("SIPPs"), 123 small self-administered pension schemes ("SSASs") and 14 funded unapproved retirement benefit schemes ("FURBS"), with total assets under administration of £300 million. It generated revenues of £786,000 and sustained a loss before tax of £56,000 in the year ended 31 December 2009. The business was acquired as part of the £2.7m acquisition of Carrwood Barker Holdings Limited in December 2005. The core advisory business previously operated by Carrwood Barker Holdings Limited is fully integrated into Lighthouse and will remain within the Company.

The consideration comprises £1.85 million in cash, net of inter company balance repayments to be paid on completion. The sale results in a profit for Lighthouse of £1.2 million on the book value of these subsidiaries and a net cash inflow of £1.6 million which will be applied to Lighthouse's strategic cash reserves.

Commenting on the transaction, David Hickey, Executive Chairman of Lighthouse Group, stated: "Despite trading steadily, these operations were sub-scale in our hands, and when approached by Mattioli Woods, we felt it appropriate to facilitate a transfer to a noted pensions specialist.

"In addition to realising significant value for Lighthouse, we are also pleased to see that this transaction will safeguard the future interests of the clients and staff associated with the business. We see the Mattioli Woods' client proposition as complementary both to the assets being transferred and to the needs of our clients requiring bespoke pension administration services. This transaction makes possible the development of a closer, ongoing relationship with Mattioli Woods."

Bob Woods, Executive Chairman of Mattioli Woods, commented "In addition to increasing the scale of our core SIPP and SSAS operations, the acquisition brings the opportunity to expand our range of services through the development of a separately branded administration proposition.

"I am delighted these services will be promoted as part of Lighthouse's Strategic Partnership Programme over the next 18 months. City Trustees has an excellent reputation for providing bespoke pensions administration, coupled with first-rate client service and is a great fit with our existing business."

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About Lighthouse

Lighthouse 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 has in excess of 800 IFAs across the UK providing financial planning advice to both private and corporate clients.

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

About Mattioli Woods

Mattioli Woods is one of the UK's leading and fastest growing providers of specialist pension consultancy and retirement wealth management. Its core services and advice are targeted towards the higher end of the market including controlling directors, professionals, owner-managed businesses and small to medium-sized PLCs.

The Group has focused particularly on advice on the application and administration of SIPPs and SSASs. Mattioli Woods now advises over 4,000 pension fund clients throughout the UK with total funds under trusteeship in excess of £2.0 billion.