Trading Update

29 April 2010

Merchant House Group Plc ("Merchant House" or the "Company")

UPDATE ON STRUCTURED INVESTMENT PLAN MANAGEMENT BUSINESS

Merchant House Group Plc announces progress in the new structured investment plan management business within Merchant Capital Limited ("Merchant Capital"), its FSA-regulated subsidiary.

The structured investment plan management business raises funds from the public via independent financial advisers (IFA's) to be invested in five year notes issued by established financial institutions. These plans are tailored in the form of structured products to meet the varied investment needs of investors, typically for income or capital growth. 

Merchant Capital has now agreed to take on an additional structured product investment book previously administered by KeyData Investment Services Limited ("KeyData") (in administration). The book has been transferred (for nil consideration) by PricewaterhouseCoopers, administrators to KeyData. Merchant Capital will manage the structured products previously issued by KeyData and Dawnay Day Quantum in respect of approximately 18,000 plans. From this week Merchant Capital will take on responsibility for the management of the plans including the processing of income payments, surrenders and maturities. 

The handling of investor funds has been contracted to Pritchard Stockbrokers Limited, the well-established south coast firm of private client stockbrokers. Merchant Capital will only derive income from the KeyData 'book' in the form of commission which may be earned on the re-investing of proceeds from maturing funds.

Merchant Capital's plans and products have had an encouraging start to this year. Two plans have closed raising over £2 million in aggregate for structured products. A turnaround product, a bond with a coupon attached, is also selling well.

Enquiries:

Merchant House Group Plc

James Holmes

Tel: 020 7332 2200

Shore Capital and Corporate Limited

Pascal Keane

Tel: 020 7408 4090