Scrip Dividend Calculation Price

PHOENIX GROUP HOLDINGS Scrip Dividend Calculation Price

Phoenix Group Holdings (the "Company") announces that the Calculation Price for the New Ordinary Shares to be issued to Shareholders who elect to receive the scrip dividend for the 2010 interim dividend is 724 pence per share.

The Calculation Price is the average of the middle market quotations of an Ordinary Share, as derived from the London Stock Exchange Daily Official List for the five consecutive dealing days starting from 8 September 2010 inclusive (the ex-dividend date for the 2010 interim dividend).

The timetable for the 2010 interim dividend is as follows:-

Mandate delivery deadline for Shareholders holding 3.00 p.m. (CET), 23 September 2010

shares through Euroclear Nederland

Mandate delivery deadline for Shareholders not holding 4.00 p.m. (BST), 24 September 2010

their shares through Euroclear Nederland

Dividend payment date 15 October 2010

First day of dealings in New Ordinary Shares 15 October 2010

Payment of the interim dividend is subject to compliance with the processes set out in Group's main credit facilities.

Details of the Scrip Dividend Scheme were sent to Shareholders on 6 September 2010. Full details and copies of the published documents are available on the Company's website at http://www.thephoenixgroup.com.

Enquiries:-

Media Investor Relations

Daniel Godfrey Lorraine Rees

+ 44 (0) 20 7489 4517 + 44 (0) 20 7489 4456

+ 44 (0) 7894 937 890 + 44 (0) 7872 413277

Note:-Defined terms used in this announcement have the same meaning as given to them in the Circular sent to Shareholders on 6 September 2010.