Personal Group Holdings plc:
company announcement 25/02/2004

Second interim dividend
The Directors of Personal Group Holdings PLC (“Personal Group”), the employee benefits provider, are pleased to report that company performance for the year ended 31 December 2003 is ahead of market expectations and announce that a second interim dividend of 5p per share (2002: 3.85p), in respect of the year ended 31 December 2003, will be paid on 24 March 2004 to members on the register on 5 March 2004.

Shares will be marked ex-dividend on 3 March 2004. In the absence of unforeseen circumstances, the directors expect to recommend a final dividend in respect of the year ended 31 December 2003 for approval at the Annual General Meeting to be held on 27 April 2004. As the strong solvency position of the group has been maintained, the directors anticipate that they will continue the policy of three dividend payments a year for the foreseeable future. The Company will announce its preliminary results for the year ended 31 December 2003 on 31 March 2004.

Acquisition
Personal Group has also acquired the entire issued share capital of Partake Services Limited (“Partake”).

Partake is a software provider which has, in particular, developed the software system that Personal Group uses for its Perflex on line flexible benefit solution. In addition, it has developed other software systems that serve the property market.

The consideration for the acquisition is to be satisfied by £30,000 in cash and the issue of 122,221 ordinary shares in Personal Group to the vendors, provided certain key employees of Partake remain with Personal Group Holdings for 3 years following the acquisition. Additionally a further 138,888 shares are payable, contingent on Partake achieving profits before tax of £100,000 in the year to 31 December 2006. The maximum consideration, excluding the value of future dividends on the shares, is £488,392 based on the average mid market closing share price of 175.556p during the three months preceding this announcement.

Christopher Johnston, Chairman and Chief Executive, of Personal Group, commented:

“This small acquisition brings with it sophisticated software skills particularly in regard to internet platforms, which are increasingly the forum through which flex benefits are being accessed by employees and I believe will become increasingly dominant over the medium term. Bringing internet related software expertise in-house, adds to our capability.”

“In the longer term, the service platforms aimed at the property market add to the range of benefits we are able to offer and have the ability to attract further clients for our financial advisory business ”.

The vendors include Patrick Johnston and David Johnston, who are respectively Christopher Johnston's nephew and brother.

In the year to 31 December 2003 Partake made losses before tax of £72,481 on sales of £251,833. The company commenced trading in 1999 and has developed proprietary software systems that service the property market, in particular a system that allows for the multiple listing of houses for sale through estate agents and for creating home information packs in line with the recently announced Government initiatives.

Enquiries to:
Personal Group Holdings PLC

Christopher Johnston
Chairman
Tel: 01908 605 000

John Barber
Finance Director
Tel: 01908 605 000

Bankside Consultants
Simon Rothschild / Ian Seaton
Tel: 0207 444 4140

Background note:
The Personal Group was established in 1984, and is one of the UK's leading providers of employee benefit solutions to major employers in the UK. It offers solutions for both flexible and voluntary benefits including the integration of current benefits, online choice capability, full communication including worksite presentation, total administration and bespoke benefit book publication.

Personal Groups range of services include:
. Employee benefit solutions
. Accident and health insurance
. General health insurance
. Independent financial advice

Personal Group has an unbroken 23 year history of profitable trading and net asset growth.