Admiral Offer Price

Admiral Group PLC
23 September 2004




THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE
                   UNITED STATES, CANADA, AUSTRALIA OR JAPAN

23 September 2004

Admiral Group plc Announces Offer Price of 275 pence per Share

Admiral Group plc ('Admiral' or 'the Company') today announces the successful
pricing of its initial public offering of existing ordinary shares to
institutional investors (the 'Global Offer').

   •Offer price set at 275 pence per existing ordinary share (the 'Offer
    Price').

   •Based upon the Offer Price, the market capitalisation of Admiral at the
    commencement of dealings on the London Stock Exchange will be £711 million.

   •The Global Offer consists of 84.1 million existing ordinary shares (prior
    to the exercise of the over-allotment option), representing 32.5% of the
    258.6 million total existing ordinary shares in issue.

   •Gross proceeds of the Global Offer amount to £231.3 million (prior to the
    exercise of the over-allotment option).

   •The gross aggregate demand received for the Global Offer amounted to
    approximately £1.5 billion.

   •In connection with the Global Offer, Merrill Lynch will be granted an
    over-allotment option of up to 15% of the Global Offer.

   •Conditional dealings in the Company's ordinary shares on the London
    Stock Exchange will commence at 8:00 am today under the ticker symbol ADM.

   •It is expected that admission of the Company's ordinary shares to the
    Official List of the London Stock Exchange will become effective and
    unconditional dealings will commence at 8:00 am on 28 September 2004.

Merrill Lynch International ('Merrill Lynch') acted as global co-ordinator, sole
bookrunner and sponsor for the Global Offer. Citigroup Global Markets U.K.
Equity Limited acted as joint lead manager and Fox-Pitt, Kelton and Lazard &
Co., Limited acted as co-lead managers for the Global Offer. Lexicon Partners
Limited acted as joint financial adviser to Admiral with Merrill Lynch.

Henry Engelhardt, Chief Executive of Admiral, said:

'The Global Offer has generated a strong response from institutions and I am
absolutely thrilled with the outcome. It is testimony to the hard work of all
the people that make Admiral the unique business that it is.'

Alastair Lyons, Chairman of Admiral, said:

'I am very pleased to welcome our new investors. We look forward to continuing
to create value for all our shareholders as we pursue our successful focussed
business strategy.'

PRESS CALL

There will be a press call at 7:25 am today. Journalists wishing to participate
are asked to call Caroline Ledosquet or Anna Marsh at Financial Dynamics on 020
7831 3113 to obtain dial-in details.

For further information, please contact:

Financial Dynamics            020 7269 7200
Robert Bailhache
Caroline Ledosquet

Admiral                       020 7269 7200
Henry Engelhardt
Louisa Scadden

Merrill Lynch                 020 7628 1000
Rupert Hume-Kendall
Simon Fraser
Henrietta Baldock

Lexicon Partners              020 7653 6000
Andrew Sibbald
Mark Hennessy

www.admiralgroup.co.uk

This announcement has been issued by and is the sole responsibility of Admiral
Group plc. The contents of this announcement have been approved by Merrill Lynch
International ('Merrill Lynch') and Lexicon Partners Limited ('Lexicon') solely
for the purposes of section 21 of The Financial Services and Markets Act 2000.
Merrill Lynch and Lexicon are each acting for Admiral Group plc and no one else
in connection with the Global Offer and will not be responsible to anyone other
than Admiral Group plc for providing the protections afforded to clients of
Merrill Lynch or Lexicon or for providing advice in relation to the Global
Offer.

In the United Kingdom, this communication is directed only to persons who (i)
have professional experience in matters related to investment or (ii) are
persons falling within Article 49(2)(a) to (d) ('high net worth companies,
unincorporated associations etc.') of the Financial Services and Markets Act
2000 (Financial Promotion) Order (as amended) (all such persons together being
referred to as 'relevant persons'). This communication must not be acted on or
relied on by persons who are not relevant persons. Any investment or investment
activity to which this communication relates is available only to relevant
persons and will be engaged in only with relevant persons.

This announcement does not form part of any offer of securities, or constitute a
solicitation of any offer to purchase or subscribe for securities, and any
acquisition of or application for shares in the Global Offer should only be made
on the basis of information contained in the listing particulars to be issued in
due course in connection with the Global Offer and any supplements thereto,
which listing particulars will contain certain detailed information about
Admiral Group plc and its management, as well as financial statements and other
financial data.

This announcement does not constitute an offer of securities for sale in the
United States of America. Neither this announcement nor any copy of it may be
taken or distributed into the United States of America or distributed or
published, directly or indirectly, in the United States of America. Any failure
to comply with this restriction may constitute a violation of US securities law.
The securities referred to herein have not been and will not be registered under
the US Securities Act of 1933, as amended (the 'Securities Act'), and may not be
offered or sold in the United States or to or for the benefit of US persons
unless they are registered under the Securities Act or pursuant to an available
exemption therefrom. No public offering of securities of Admiral Group plc is
being made in the United States of America or elsewhere.

In connection with the Global Offer, Merrill Lynch may over-allocate or effect
transactions to stabilise or maintain the market price of Admiral Group plc's
securities at levels above those that might otherwise prevail in the open
market. However, there is no obligation on Merrill Lynch to take such action.
Such transactions may be effected on the London Stock Exchange, in
over-the-counter markets or otherwise and shall be carried out in accordance
with applicable rules and regulations. Such transactions, if commenced, may be
discontinued at any time.

The distribution of this announcement and the offering or sale of the Company's
shares in certain jurisdictions may be restricted by law. No action has been
taken by Company or Merrill Lynch or any of their respective affiliates that
would permit an offering of the shares or possession or distribution of this
announcement or any other offering or publicity material relating to such shares
in any jurisdiction where action for that purpose is required. Persons into
whose possession this announcement comes are required by the Company and Merrill
Lynch to inform themselves about and to observe any such restrictions.

Merrill Lynch and Lexicon are authorised and regulated by the Financial Services
Authority.






                      This information is provided by RNS
            The company news service from the London Stock Exchange