Personal Group Holdings plc:
company announcement 29/07/2004

LIGHTHOUSE GROUP PLC (“Lighthouse”) and PERSONAL GROUP HOLDINGS PLC (“Personal Group”)

NEW BUSINESS PARTNERSHIP AND SHARE SUBSCRIPTION
Lighthouse, one of the UK’s largest firm’s of Independent Financial Advisers, today announces that it has entered into strategic agreements with Personal Group Holdings PLC (“Personal Group”), the long established and successful insurance and employee benefits group.

Background
For some time Lighthouse has been keen to secure greater access to the rapidly growing employee benefit market and to the provision of financial services generally within the workplace. The arrangements launched today with Personal Group meet these ambitions without the need for an acquisition by Lighthouse.

Lighthouse Corporate Benefits
Personal Group has a long history of successful penetration of the corporate workplace, with over 250 corporate clients. Association with Lighthouse brings Personal Group direct access to an additional range of regulated products. The arrangements provide Lighthouse access to the corporate workplace with a partner wholly familiar with the dynamics and requirements of corporate customers.

To make the most of these arrangements, a new Lighthouse subsidiary, Lighthouse Corporate Benefits (“LCB”) has been established. Initially LCB will use 50 selected advisers currently trading within the Lighthouse group who, it is intended, will focus on developing corporate business with Personal Group. This will be implemented via additional training and development of the chosen advisers, a supply of lead introductions from Personal Group to the selected Lighthouse advisers, and access to certain Personal Group products, in particular the Perflex software system. Perflex is the Personal Group’s web based integrated benefits programme that features flexible benefits, voluntary benefits, salary reduction schemes and total reward statements.

Subscription
Also, Personal Group is subscribing for two million new ordinary shares in Lighthouse, at a price of 20p per share, equivalent to a 5.09 percent holding in the enlarged Lighthouse. The net proceeds will be used to support the early implementation of the arrangements, as well as for general working capital purposes. The shares have been placed for cash, subject to admission to trading on AIM. Application has been made for the shares to be admitted to trading on AIM and admission is expected to take place on 30 July 2004.

Comment
David Hickey, Executive Chairman of Lighthouse, commented:

“These arrangements, and in particular Personal Group's Perflex software give Lighthouse far greater access to the corporate workplace, as well as additional opportunities to add to the Lighthouse product range and to extend the reach of Lighthouse advisers. I am pleased to see the arrangements concluded satisfactorily, and to welcome Personal Group as a significant new shareholder into Lighthouse.”

Ken Rooney, Managing Director of Personal Group added:

“We have had considerable success in launching benefit programmes to major UK companies over the last few years. We consider Perflex, owned and developed by the Personal Group, to be the best software solution of it’s kind The ability of Lighthouse to provide additional access through network, national and franchise operations offers a great extension to Personal Group’s market penetration. We believe Lighthouse is well positioned and we are pleased to have this opportunity to become shareholders.”

ENDS
For further information:

Lighthouse Group plc
Tel: 020 7776 8891

Malcolm Streatfield, Chief Executive

Personal Group Holdings PLC
Tel: 01908 605000

Kenneth Rooney, Managing Director
Christopher Johnston, Chairman

Waughton (for Lighthouse)
Tel: 020 7796 9999

Robin Hepburn / Sorrel Davies

Bankside (for Personal Group)
Tel: 020 7444 4140

Ian Seaton / Simon Rothschild

Notes to editors:

Lighthouse Group plc
Lighthouse Group PLC is a publicly quoted (AIM market) financial services group which, through its subsidiary companies, provides wealth management services and independent financial advice to both private and corporate clients.

Established in 2000, Lighthouse is the 7th largest IFA in the UK with over 500 members. It provides coverage for all Socio Economic Groups and UK Coverage including Northern Ireland.

Lighthouse aims to introduce new ideas, more effective solutions and a greater understanding in all matters affecting its clients’ personal and corporate financial planning.

Website address: www.lighthouseifa.com

Personal Group Holdings PLC
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.

The company 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.

Listed on AIM in 2000, Personal Group has an 23 year unbroken record of profitable trading.

Website address: www.personal-group.com