26 March 2007

                          PERSONAL GROUP HOLDINGS PLC                          

                      PRELIMINARY ANNOUNCEMENT OF RESULTS                      

                      FOR THE YEAR ENDED 31 DECEMBER 2006                      

The board of directors of Personal Group Holdings Plc, providers of employee

benefits, insurance and consultancy, are pleased to announce the group's

results as follows:

                                  HIGHLIGHTS                                   

                                         2006         2005            %

                                           £m           £m             

Headline EBITDA *                        10.1          9.7          + 4

Pre-tax profit                            8.3          7.7          + 8

Trading income**                         23.8         24.2          - 2

                                         2006         2005            %

                                        Pence        Pence             

EBITDA per share (basic)                 33.6         32.1          + 5

Earnings per share (basic)               18.7         16.9         + 11

Dividends per share paid in 2006         11.1         10.6          + 5

                                         2007         2006            %

                                        Pence        Pence             

Dividend per share payable May            3.5          3.3          + 6

2007***                                                                

* EBITDA is defined as earnings before interest, tax, depreciation and

amortisation.

** Trading income comprises earned premiums, net of claims incurred and other

income from the ongoing business representing commission and fees earned on

financial products and other related services.

*** The directors have declared a dividend of 3.5p (2006: 3.3p) per share

payable on 9 May 2007 to shareholders on the register at the close of business

on 10 April 2007. Shares will be marked ex-dividend on 4 April 2007. The AGM

will be held on 24 April 2007.

Ken Rooney, Chief Executive, commented:

'The group has had another profitable year with EBITDA over £10.0m for the

first time at £10.1m

(2005: £9.7m).

During 2006 we launched 18 new benefit programmes. All new programmes are now

on our Perflex employee benefit software platform where employees have use of

one or more of the modules available. We currently have 52 employers using the

system and it is available to more than 195,000 employees.

Our voluntary group death benefit plan, which provides life insurance to

employees and their families on a fixed premium basis regardless of sex, age up

to 65 or previous medical history, was withdrawn from sale for the first three

quarters of 2006 whilst new arrangements with the underwriters were put in

place. New sales were successfully restarted in the last quarter of 2006.'

CHAIRMAN'S STATEMENT

BUSINESS REVIEW

I am pleased to report that the group has achieved another record year. Profit

before tax increased by £0.6m to £8.3m (2005: £7.7m) and EBITDA increased by £

0.4m to £10.1m (2005: £9.7m).

After provision for taxation, there was a surplus of £5.6m which was added to

reserves. Shareholders' funds stood at £22.8m (2005: £20.6m) on the 31st

December 2006, which is 75p (2005: 67p) per share.

The directors have declared a May 2007 dividend of 3.5p (2006: 3.3p) per share.

Dividends paid in 2006 totalled 11.1p per share, an increase of 4.7% compared

with 2005. The board expects to continue its policy of three dividends per year

for the foreseeable future.

As a result of lower new sales activity by our worksite team during the year

savings of approximately £0.5m were made compared with 2005, which were partly

offset by an increase in our regulatory compliance costs.

Our Personal Hospital Plan, Supplementary Sick Pay, Death Benefit and related

policies have now accumulated a £11.6m annual premium `bank' of business that

has been in place for more than 2 years and where all original sales costs have

been recovered.

More than 24,000 claims were notified and processed in 2006. Over 99% were

paid, the vast majority by return of post. No Personal Assurance Plc claims

were referred to the Financial Ombudsman Service during the year. This reflects

not only the efficiency of the claims handling procedures we have in place but

also the simplicity of the policies, a major factor in their appeal to

customers, which is part of our ongoing commitment to treating customers

fairly.

During the financial year Berkeley Morgan Group companies (BMG) contributed £

1.3m (2005: £1.7m) of pre-tax profit. This represented a contribution of just

over 12.8% (2005: 17.2%) of the EBITDA of the group. These figures are stated

after making full provision for the costs directly related to the departure of

BMG's former managing director.

Restructuring of the three main operating profit centres of BMG under their own

sales management has commenced. This is expected to increase costs during 2007

with the anticipated benefits beginning to flow through in 2008.

The performance of our investments including investment income, realised and

unrealised gains and losses and related expenses fell from a net income of £

1.0m in 2005 to a net income of £0.9m in 2006.

At 31 December 2006, our Government fixed interest securities and cash deposits

amounted to £12.5m

(2005: £11.5m). Having borrowed £12m to help fund our £13m acquisition of BMG

in January 2005 we had, by 31st December 2006, reduced the debt to £6m.

The group's joint venture with Abbeygate Developments Limited, of additional

office space and residential units on the site adjacent to John Ormond House is

fully let and generated a gross income of £0.4m in 2006

(2005: £0.2m) of which 50% is receivable by the group.

As stated in Personal Assurance Plc's annual return to the Financial Services

Authority the capital resources requirement at 31 December 2006 was £2,884,000

(2005: £2,809,000). Capital resources available to cover general insurance

business capital resources requirement were £7,600,000 (2005: £7,508,000).

PROSPECTS FOR 2007

Current trading is in line with directors' expectations. Our worksite team is

at full strength and is performing well ahead of the same period last year, and

we anticipate their continued utilisation at optimum levels during the year.

A second employed sales team, backed by our £0.5m sales development programme,

has been established for the 'white collar' market with the first new sales

having been made in February 2007. This team is also involved in the

introduction of our new Voluntary Group Income Protection scheme to employees

which provides a supplement to their existing sick pay.

My thanks to all our employees and associates for their individual

contributions that together made this our most successful year to date.

Christopher W T Johnston

Chairman

23 March 2007

Enquiries:

Personal Group Holdings Plc Tel: 0207 367 8888 (on 26/3/07)

Christopher Johnston, Chairman 01908 605000 ext 235 (thereafter)

Ken Rooney, Chief Executive

John Barber, Finance Director

Bankside Consultants

Simon Rothschild Tel: 0207 367 8871

PERSONAL GROUP HOLDINGS PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2006

                                                     2006                  2005

                                          £000       £000       £000       £000

TECHNICAL ACCOUNT -                                                            

GENERAL BUSINESS                                                               

Premiums written                               15,933                15,638    

Change in the gross provision                  20                    (191)     

for unearned premiums                                                          

                                               _________             ________  

Earned premiums                                15,953                15,447    

Claims paid                         (2,987)               (2,941)              

Change in the provision for         79                    121                  

claims                                                                         

                                    ________              ________             

Claims incurred                                (2,908)               (2,820)   

Net operating expenses                         (7,328)               (7,314)   

                                               ________              ________  

Balance on the technical                       5,717                 5,313     

account for general business                                                   

                                               ________              ________  

                                               ________              ________  

NON-TECHNICAL ACCOUNT                                                          

Balance on the general                         5,717                 5,313     

business technical account                                                     

Investment income                   845                   967                  

Unrealised gains on                 68                    107                  

investments                                                                    

Investment expenses and             (23)                  (36)                 

charges                                                                        

                                    _______               _______              

Net investment return                          890                   1,038     

Other income                   1               10,729                11,617    

Other charges                  1               (8,946)               (10,182)  

Charitable donations                           (80)                  (126)     

                                               _______               _______   

Profit on ordinary activities                  8,310                 7,660     

before tax                                                                     

Tax on profit on ordinary      2               (2,667)               (2,557)   

activities                                                                     

                                               _______               _______   

Profit for the financial year                  5,643                 5,103     

                                               ________              ________  

                                               ________              ________  

Earnings per share (basic)     3               18.7p                 16.9p     

Earnings per share (diluted)   3               18.6p                 16.8p     

There are no recognised gains or losses for the period other than the profit

for the financial year.

Included within other income is £184,000 (2005: £299,000), other charges is £

140,000 (2005: £217,000), and tax on profit on ordinary activities is £12,000

(2005: £1,000) all relating to disposals in the year. All other operations are

considered to be continuing.

PERSONAL GROUP HOLDINGS PLC

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2006

                                                   2006               2005     

                                         £000      £000      £000     £000     

Assets                                                                         

Intangible assets                                                              

Goodwill                                           8,219              9,247    

Investments                                                                    

Investment in joint venture                                                    

Share of gross assets                    2,204               2,214             

Share of gross liabilities               (2,210)             (2,250)           

                                         ________            ________          

Net investment                                     (6)                (36)     

Other financial investments                        8,446              8,564    

Debtors                                                                        

Debtors arising out of direct            1,383               1,501             

insurance operations                                                           

Other debtors due within one year        1,539               1,196             

                                         ________            ________          

                                                   2,922              2,697    

Other assets                                                                   

Tangible assets                          6,555               6,638             

Cash at bank and in hand                 9,486               8,564             

                                         ________            ________          

                                                   16,041             15,202   

Prepayments and accrued income                                                 

Accrued interest and rent                47                  48                

Deferred acquisition costs               68                  75                

Other prepayments and accrued            1,020               1,554             

income                                                                         

                                         ________            ________          

                                                   1,135              1,677    

                                                   _________          _________

Total assets                                       36,757             37,351   

                                                   _________          _________

                                                   _________          _________   

Liabilities                                                                    

Capital and reserves                                                           

Called up share capital               1,528               1,528                

Shares to be issued                   289                 298                  

Other reserve                         (707)               (763)                

Treasury shares reserve               (298)               -                    

Profit and loss account               21,950              19,498               

                                      ________            ________             

Shareholders' funds                             22,762             20,561      

Technical provisions                                                           

Provision for unearned premiums       397                 417                  

Claims outstanding                    895                 982                  

                                      _______             _______              

                                                1,292              1,399       

Provisions for liabilities                      403                422         

Creditors                                                                      

Current taxation                      1,355               1,452                

Other creditors including other       1,211               867                  

taxation and social security                                                                

Bank loans                            6,285               8,435                

                                      _______             _______              

                                                8,851              10,754      

Accruals and deferred income                    3,449              4,215       

                                                _________          _________   

Total liabilities                               36,757             37,351      

                                                _________          _________   

                                                _________          _________   

PERSONAL GROUP HOLDINGS PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2006

                                                         2006              2005

                                                £000     £000     £000     £000

Net cash inflow from operating                       9,974             10,177  

activities                                                                     

Loan interest paid                                   (430)             (605)   

Taxation paid                                        (2,805)           (2,441) 

Capital expenditure                                                            

Purchase of fixed assets                    (364)             (237)            

Sale of fixed assets                        68                71               

Purchase of own shares                      (28)              (220)            

Sale of own shares                          84                15               

Purchase of treasury shares                 (298)             -                

                                            _______           _______          

                                                     (538)             (371)   

Acquisitions and disposals                                                     

Disposal/(acquisition (net of cash                                             

acquired)) in                                                                  

subsidiary undertakings                              (40)              (10,795)

Equity dividends paid                                (3,347)           (3,191) 

Financing                                                                      

Additions to bank loans                     28                12,243           

Repayments of bank loans                    (2,178)           (4,111)          

                                            _______           _______          

                                                     (2,150)           8,132   

                                                     _______           _______ 

Net cash flows                                       664               906     

Cash flows were invested as follows:                                           

Increase/(decrease) in cash holdings                 922               (372)   

Net portfolio investment                                                       

Ordinary shares, loans, finance                      (258)             1,278   

leases, treasury loan stock                                                    

                                                     _______           _______ 

Net investment of cash flows                         664               906     

                                                     _______           _______ 

                                                     _______           _______ 

Notes

 1. Other income comprises insurance related business £9,227,000 (2005: £

    10,606,000) and other business £1,502,000 (2005: £1,011,000). Other charges

    comprises insurance related business £6,946,000 (2005: £8,232,000) and

    other business £2,000,000 (2005: £1,950,000).

 2. Taxation comprises United Kingdom corporation tax of £2,688,000 (2005: £

    2,582,000), and deferred taxation credit of £21,000 (2005: £25,000).

 3. The basic and diluted earnings per share are based on the profit for the

    financial year of £5,643,000 (2005: £5,103,000) and on 30,182,627 basic

    (2005: 30,185,071), 30,400,618 diluted (2005: 30,377,285) ordinary shares,

    the weighted average number of shares in issue during the year. The EBITDA

    per share are based on the earnings before interest, tax, depreciation and

    amortisation for the financial year of £10,120,000 (2005: £9,679,000).

 4. The directors have declared a dividend of 3.5p (2006: 3.3p) per share

    payable on 9 May 2007 to share holders on the register at the close of

    business on 10 April 2007. Shares will be marked ex-dividend on 4 April

    2007. The total dividend paid in the year was £3,347,000 (2005: £

    3,191,000), which is equivalent to 11.1p (2005: 10.6p) per share.

The preliminary statement which has been agreed with the auditors and approved

by the Board on 23 March 2007 is not the Company's statutory accounts. The

statutory accounts for each of the two years to 31 December 2005 and 31

December 2006 received audit reports, which were unqualified and did not

contain statements under section 237 (2) or (3) of the Companies Act 1985. The

2005 accounts have been filed with the Registrar of Companies but the 2006

accounts are not yet filed.

END