Interim Results

PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS                  

                FOR THE SIX MONTHS TO 30 JUNE 2006 (unaudited)                 

The Directors recommend an interim dividend of 3.40p on the ordinary shares for
the six months to 30 June 2006. The interim report including the unaudited
results for the period was as follows:

Company Summary

From its origins in 1889 Law Debenture has diversified to become a group with a
unique range of activities in the financial services sector. The group divides
into two distinct complementary areas of business.

Investment trust

We are a global growth investment trust listed on the London Stock Exchange.

Our portfolio of investments is managed by Henderson Global Investors Limited
under a contract terminable by either side on 12 months' notice.

Our objective is to achieve long term capital growth in real terms and steadily
increasing income. The aim is to achieve a higher rate of total return than the
FTSE Actuaries All-Share Index through investing in a portfolio diversified
both geographically and by industry.

Trustee and related services

We are a leading independent provider of professional trustee, fiduciary and
related services (including corporate services and agent for service of
process) to the wholesale markets and to occupational pension schemes. We have
offices in London, New York, Hong Kong, the Channel Islands and the Cayman
Islands.

Individuals, companies, agencies and organisations throughout the world rely
upon Law Debenture to carry out its duties with the independence upon which its
reputation is built.

Financial summary of The Law Debenture Corporation p.l.c.

Highlights

                                             At            At              At
                                                                             
                                        30 June       30 June     31 December
                                                                             
                                           2006          2005            2005
                                                                             
                                          pence         pence           pence
                                                                             
Share price                              303.50        262.50          288.75
                                                                             
NAV per share                            296.65        251.90          289.93
                                                                             
NAV per share after proposed             293.25        248.80          283.98
dividend                                                                     
                                                                             
Earnings per share                                                           
                                                                             
- Investment trust                         3.88          3.38            5.73
                                                                             
- Trustee and related services             2.16          1.87            4.32
                                                                             
Group earnings per share                   6.04          5.25           10.05
                                                                             
Dividends per share                        3.40          3.10            9.05
                                                                             

Performance to 30 June 2006

                                       6 months     12 months                
                                                                             
                                              %             %                
                                                                             
Share price                                 5.1          15.6                
                                                                             
NAV total return                            4.5          21.6                
                                                                             
FTSE All-Share Index total return           6.1          19.7                
                                                                             

Basis of preparation

The results for the period have been prepared in accordance with International
Financial Reporting Standards. There have been no changes to the group's
accounting policies during the period.

 1. These are not statutory accounts in terms of section 240 of the Companies
    Act 1985 and are unaudited. The figures and financial information for the
    year end 31 December 2005 have been extracted from the 2005 report and
    accounts, which have been filed with the Registrar of Companies. Those
    accounts included an unqualified auditors' report and did not contain a
    statement under section 237 of the Companies Act 1985.
   
 2. The calculations of NAV and earnings per share are based on:
   
NAV: shares in issue at end of the period 117,069,433 (2005: 117,119,556)

Income: average shares in issue during the period 117,076,110 (2005:
117,134,669)

Management Commentary

Performance

Over the six months to 30 June 2006, our net asset value total return was 4.5%
compared to the FTSE Actuaries All-Share Index total return of 6.1%. The
principal reason for this shortfall was a low representation in mining stocks,
which were strong over the period.

Our gross revenues increased over the prior half year by 16.0% from £18.0
million to £20.8 million. Profit before taxation was £7.9 million, an increase
over the previous period of 15.3% as a result of a 13.4% improvement in the
investment trust and an 18.1% improvement in trustee and related services. The
investment trust benefited from strong dividend growth and the trustee and
related services businesses continued the improved performance of the second
half of 2005.

Earnings and dividends

Earnings per ordinary share for the six months to 30 June 2006 were 6.04p, an
increase of 15.0%. This rate of increase is unlikely to be sustained in the
second half of the year. The policy of the company continues to be to seek
growth in both capital and income; the board has declared an interim dividend
of 3.4p, which is an increase of 9.7% over the previous interim dividend of
3.1p. Though this rate of increase may not be sustained in the final dividend,
it is expected that the final dividend will at least equal that paid in respect
of 2005.

The interim dividend is payable on 12 September 2006 to shareholders on the
register on 11 August 2006.

Investment Manager's Report

After a strong start to the period, equity markets experienced a setback in
May, leaving them little changed from the year end. Investor confidence was
undermined by concerns over the prospect of rising inflation and the impact
that would have on interest rates, which might cause the global economy to fall
into recession. More recently, geopolitical concerns arising out of the Middle
East have affected markets.

During the period, effective gearing was reduced from 14% to 7% as good value
investment opportunities became more difficult to find. However, the setback in
the markets may have created opportunities as the share prices of some
companies may have fallen too far. The focus will be on investing in companies
that can deliver sound results in a more difficult operating environment.

Trustee and related services

Trustee and related services revenue, excluding rechargeable expenses,
increased by 15.4% as a result of continued growth in most areas of the
business, arising from high levels of corporate activity. Law Debenture
continues to be involved in a wide variety of capital markets transactions.
Existing clients have appointed us to new debt issues. Treasury Management has
seen a number of new opportunities, particularly as facility agent and escrow
agent.

Law Debenture's service of process business is highly regarded and is
recognised for its quality of service. Its growth during the period has been
driven by the high level of corporate transactions. Our corporate services
business has had a good start to the year, continuing to win appointments both
in the structured finance market place and more widely in other capital markets
transactions. Our pension trustee business has had numerous new business
enquiries and several appointments in the first half of the year, including The
Royal Mail Pension Plan.

Law Debenture Trust Company of New York achieved significant growth in income
and profit. We acted as trustee, exchange agent, paying agent and escrow agent
on the second largest high yield bond ever issued in the US, where we continued
to generate fees from successor trustee appointments. Hong Kong and The Channel
Islands continued to make good progress.

Group income statement

For the period ended 30 June 2006 (unaudited)

                                30 June 2006                30 June 2005      
                                                                              
                           Revenue Capital   Total     Revenue Capital   Total
                                                                              
                             £'000   £'000   £'000       £'000   £'000   £'000
                                                                              
UK dividends                 5,338       -   5,338       4,909       -   4,909
                                                                              
UK special dividends            19       -      19         135       -     135
                                                                              
Overseas dividends           1,117       -   1,117         983       -     983
                                                                              
Interest from securities        85       -      85          52       -      52
                                                                              
                             6,559       -   6,559       6,079       -   6,079
                                                                              
Bank deposit interest          554       -     554         542       -     542
                                                                              
Trustee and other related   13,401       -  13,401      11,279       -  11,279
fees                                                                          
                                                                              
Other income                   324       -     324          63       -      63
                                                                              
Total Revenue               20,838       -  20,838      17,963       -  17,963
                                                                              
Net gain on investments          -   8,092   8,092           -  21,919  21,919
held at fair value through                                                    
the profit or loss account                                                    
                                                                              
Gross income and capital    20,838   8,092  28,930      17,963  21,919  39,882
gains                                                                         
                                                                              
Cost of sales              (4,522)       - (4,522)     (3,365)       - (3,365)
                                                                              
Administrative expenses    (7,153)    (91) (7,244)     (6,491)   (133) (6,624)
                                                                              
Operating profit             9,163   8,001  17,164       8,107  21,786  29,893
                                                                              
Finance costs                                                                 
                                                                              
Interest payable           (1,229)       - (1,229)     (1,226)       - (1,226)
                                                                              
Profit before taxation       7,934   8,001  15,935       6,881  21,786  28,667
                                                                              
Taxation                     (868)       -   (868)       (733)       -   (733)
                                                                              
Profit for period            7,066   8,001  15,067       6,148  21,786  27,934
                                                                              
Return per ordinary share                    12.87                       23.85
(pence)                                                                       
                                                                              
Diluted return per                           12.87                       23.85
ordinary share (pence)                                                        
                                                                              

A special dividend of £458,000 included as revenue in the 2005 interim report
has been restated as capital to be consistent with the year end financial
statements.

Statement of total recognised income and expense

For the period ended 30 June 2006 (unaudited)

                                       30 June 2006                30 June 2005
                                                                               
                           Revenue  Capital   Total     Revenue Capital   Total
                                                                               
                             £'000    £'000   £'000       £'000   £'000   £'000
                                                                               
Profit for the period        7,066    8,001  15,067       6,148  21,786  27,934
                                                                               
Foreign exchange             (197)        -   (197)          27       -      27
                                                                               
Total income and expense     6,869    8,001  14,870       6,175  21,786  27,961
relating to the period                                                         

Balance sheet

Group net assets

                                    30 June 200  30 June 2005     31 December
                                              6                          2005
                                                  (unaudited)                
                                    (unaudited)                     (audited)
                                                        £'000                
                                          £'000                         £'000
                                                                             
Assets                                                                       
                                                                             
Non current assets                                                           
                                                                             
Property, plant and equipment               711           808             739
                                                                             
Intangible assets                            94           147             113
                                                                             
Investments held at fair value          366,430       330,380         380,747
through profit or loss                                                       
                                                                             
Other assets                                  -             5               5
                                                                             
Deferred tax assets                       1,644         2,208           2,106
                                                                             
Total non current assets                368,879       333,548         383,710
                                                                             
Current assets                                                               
                                                                             
Trade and other receivables               7,327         6,835           7,368
                                                                             
Other accrued income and prepaid          2,262         2,549           2,419
expenses                                                                     
                                                                             
Other current assets                          -            10              46
                                                                             
Cash and cash equivalents                33,747        20,002          19,295
                                                                             
Total current assets                     43,336        29,396          29,128
                                                                             
Total assets                            412,215       362,944         412,838
                                                                             
Current liabilities                                                          
                                                                             
Trade and other payables                  7,351         7,346           7,912
                                                                             
Short term borrowings                        11           144           5,696
                                                                             
Corporation tax payable                     318           613             548
                                                                             
Other taxation including social             440           165             433
security                                                                     
                                                                             
Deferred income                           4,379         4,508           4,326
                                                                             
Total current liabilities                12,499        12,776          18,915
                                                                             
Non current liabilities                                                      
                                                                             
Long term borrowings                     39,243        39,216          39,230
                                                                             
Retirement benefit obligations            4,828         7,348           6,443
                                                                             
Deferred income                           8,359         8,537           8,626
                                                                             
Total non current liabilities            52,430        55,101          54,299
                                                                             
Total net assets                        347,286       295,067         339,624

Group cash flow statement

For the period ended 30 June 2006 (unaudited)

                                          30 June   31 December     30 June
                                                           2005            
                                             2006                      2005
                                                                           
                                            £'000         £'000       £'000
                                                                           
Operating activities                                                       
                                                                           
Cash generated from operating               8,644        14,948       7,442
activities                                                                 
                                                                           
Taxation                                    (517)       (1,315)       (726)
                                                                           
Interest paid                             (1,229)       (2,471)     (1,226)
                                                                           
Pension special contribution              (1,615)         (885)           -
                                                                           
Operating cash flow                         5,283        10,277       5,490
                                                                           
Investing activities                                                       
                                                                           
Capital expenditure                          (42)          (46)        (19)
                                                                           
Expenditure on intangible assets              (9)           (4)         (4)
                                                                           
Purchase of investments                  (17,416)      (71,592)    (29,144)
                                                                           
Sale of investments                        39,734        59,508      24,727
                                                                           
Other movements                                18            37           -
                                                                           
Cash flow from investing activities        22,285      (12,097)     (4,440)
                                                                           
Financing activities                                                       
                                                                           
Dividends paid                            (6,963)       (9,196)     (5,571)
                                                                           
Proceeds of increase in share capital          92           212         199
                                                                           
Purchase of own shares                      (363)          (36)        (36)
                                                                           
Net cash flow from financing              (7,234)       (9,020)     (5,408)
activities                                                                 
                                                                           
Net increase/(decrease) in cash and        20,334      (10,840)     (4,358)
cash equivalents                                                           
                                                                           
Cash and cash equivalents at               13,599        24,189      24,189
beginning of period                                                        
                                                                           
Exchange gains / (losses) on cash and       (197)           250          27
cash equivalents                                                           
                                                                           
Cash and cash equivalents at end of        33,736        13,599      19,858
period                                                                     
                                                                           
Cash and cash equivalents comprise                                         
                                                                           
Cash and cash equivalents at end of        33,747        19,295      20,002
period                                                                     
                                                                           
Bank loans and overdrafts                    (11)       (5,696)       (144)
                                                                           
                                           33,736        13,599      19,858
                                                                           

Analysis of the investment portfolio

by geographical location

                           United    North   Europe    Japan  Pacific     Total
                                                                               
                          Kingdom  America    £'000    £'000    £'000     £'000
                                                                               
                            £'000    £'000                                     
                                                                               
Investments at 31         273,882   23,866   37,709   19,633   25,657   380,747
December 2005                                                                  
                                                                               
Purchases                  13,529      623    3,264        -        -    17,416
                                                                               
Cost of acquisition          (84)      (1)      (6)        -        -      (91)
                                                                               
Sales proceeds           (27,215)  (9,008)  (3,511)        -        -  (39,734)
                                                                               
Appreciation/               8,283  (1,859)    3,145  (1,242)    (235)     8,092
(depreciation)                                                                 
                                                                               
Valuation at 30 June      268,395   13,621   40,601   18,391   25,422   366,430
2006                                                                           
                                                                               
Per cent of total            73.3      3.7     11.1      5.0      6.9     100.0

By Sector

                                                            As at         As at
                                                                               
                                                          30 June   31 December
                                                                               
                                                             2006          2005
                                                                               
                                                                %             %
                                                                               
Oil & gas                                                     9.5           9.5
                                                                               
Basic materials                                               3.3           5.0
                                                                               
Industrials                                                  16.2          14.1
                                                                               
Consumer goods                                               11.3          11.0
                                                                               
Health care                                                   6.7           6.3
                                                                               
Consumer services                                            12.4          13.5
                                                                               
Telecommunications                                            3.7           4.4
                                                                               
Utilities                                                     3.2           3.1
                                                                               
Financials                                                   33.5          32.1
                                                                               
Technology                                                    0.2           1.0
                                                                               
                                                            100.0         100.0

Statement of changes in equity

                      Share   Share Own        Capital   Share Foreign  Capital  Retained   Total
                    capital premium shares  redemption   based exchange reserves earnings    2005
                                                       payment                                   
                                                                                                 
                      £'000   £'000 £'000        £'000   £'000  £'000    £'000    £'000     £'000
                                                                                                 
Equity at 1 January   5,882   7,231   (963)          8     114       73  309,075   18,204 339,624
2006                                                                                             
                                                                                                 
Net profit                -       -       -          -       -        -    8,001    7,066  15,067
                                                                                                 
Foreign exchange          -       -       -          -       -    (197)        -        -   (197)
                                                                                                 
Total income and                                                  (197)    8,001    7,066  14,870
expenditure                                                                                      
                                                                                                 
Movement in own           -       -   (363)          -       -        -        -        -   (363)
shares                                                                                           
                                                                                                 
Issue of shares           2      90       -          -       -        -        -        -      92
                                                                                                 
Dividend relating         -       -       -          -       -        -        -  (6,963) (6,963)
to 2005                                                                                          
                                                                                                 
Share based payment       -       -       -          -      26        -        -        -      26
                                                                                                 
Total equity          5,884   7,321 (1,326)          8     140    (124)  317,076   18,307 347,286
shareholders' funds                                                                              
at 30 June 2006                                                                                  
                                                                                                 

Segmental analysis

                         Investment trust      Trustee and related          Total          
                                                          services                         
                                                                                           
                     30   30 Jun  31 Dec  30 Jun  30 Jun   31 Dec  30 Jun  30 Jun   31 Dec 
                     Jun   2005    2005    2006    2005     2005    2006    2005     2005  
                    2006                                                                   
                                                                                           
                    £'000  £'000   £'000   £'000   £'000   £'000    £'000   £'000   £'000  
                                                                                           
Segment revenue     6,559   6,079  11,002  13,725  11,342   23,254  20,284  17,421   34,256
                                                                                           
Segmental Costs                                                                            
                                                                                           
Cost of sales           -       -       - (4,522) (3,365)  (6,994) (4,522) (3,365)  (6,994)
                                                                                           
Administration      (925)   (868) (1,684) (6,228) (5,623) (10,998) (7,153) (6,491) (12,682)
costs                                                                                      
                                                                                           
                    5,634   5,211   9,318   2,975   2,354    5,262   8,609   7,565   14,580
                                                                                           
Interest (net)      (979) (1,107) (2,411)     304     423    1,008   (675)   (684)  (1,403)
                                                                                           
Profit for the      4,655   4,104   6,907   3,279   2,777    6,270   7,934   6,881   13,177
period before                                                                              
taxation                                                                                   
                                                                                           
Taxation            (119)   (143)   (197)   (749)   (590)  (1,207)   (868)   (733)  (1,404)
                                                                                           
Profit for the      4,536   3,961   6,710   2,530   2,187    5,063   7,066   6,148   11,773
period                                                                                     
                                                                                           
Return per ordinary  3.88    3.38    5.73    2.16    1.87     4.32    6.04    5.25    10.05
share (pence)