Issue of floating notes

Arbuthnot Banking Group PLC
07 November 2005


                                                                 7 November 2005


                          ARBUTHNOT BANKING GROUP PLC

         ISSUE OF €15 MILLION FLOATING RATE SUBORDINATED NOTES DUE 2035


Arbuthnot Banking Group PLC ('Arbuthnot' or 'the Company') announces that it has
today issued €15 million (equivalent to £10.1 million at today's exchange rate)
of Floating Rate Subordinated Notes due 2035 ('the Notes').  The Notes have been
purchased by Merrill Lynch International and by a fund managed by Dekania
Capital Management LLC.  No listing is being sought for the Notes on any stock
exchange.

The Notes bear interest at 3% over the rate for three-month deposits in Euros.
They are repayable in full in August 2035 and may be redeemed at the Company's
option (subject to the consent of the Financial Services Authority) on any
interest payment date occurring after November 2010.  The Notes rank in priority
to distributions on all classes of share capital of the Company but are
subordinated in right of payment to the claims of all unsubordinated creditors
of the Company.  The terms of the subordination allow the Notes to qualify as
Lower Tier 2 capital of the Company under the rules of the Financial Services
Authority.

The proceeds of the issue will be used for working capital purposes and to
redeem the Company's existing Floating Rate Subordinated Loan Notes 2009,
totalling £7.8 million.

Commenting on the issue, Henry Angest, Chairman and Chief Executive of
Arbuthnot, said:-

'The issue of 30-year subordinated debt is an important part of our long-term
capital planning.  After repaying our existing subordinated debt, which has only
four years remaining to maturity, the issue will provide us with an additional
£2 million of regulatory capital to support the continued growth of our
business.'



Enquiries

Arbuthnot Banking Group PLC
Henry Angest, Chairman and Chief Executive                   Tel:  [phone]
Stephen Lockley, Group Finance Director                      Tel:  [phone]
Andrew Salmon, Chief Operating Officer                       Tel:  [phone]

College Hill:
Tony Friend                                                  Tel:  [phone]
Richard Pearson                                              Tel:  [phone]




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