FSA Update / Current Trading

Berkeley Berry Birch PLC
04 April 2005



                        Berkeley Berry Birch plc ('BBB')

                Update on FSA Investigations and Current Trading



FSA investigations

Further to our announcement on 10 December 2004 the Board of BBB plc provides
the following update.


Investigation into Regular Savings Premium & Whole of Life Sales

The investigation into the sale of the above products is ongoing and the Board
of Berkeley Independent Advisers ('BIA'), with support from its parent company,
continues to provide its full assistance to the Financial Services Authority ('
FSA').

The Board of BIA, with support from its parent company, continues to liaise with
the FSA on the nature and extent of any investigation into past business. As a
result, the costs of such an exercise remain uncertain at this point, although
they could be substantial if a full review is required.


Liquidation and Sale of Berry Birch & Noble Financial Services

As a matter of clarification, the above investigation is separate from the
continuing FSA investigation into Berry Birch & Noble Financial Services
Limited, which was detailed in the most recent annual report of BBB.


Trading performance for the year ended 31 March 2005

Following a slowdown within our Financial Services Division in the last quarter,
turnover for the year ended 31 March 2005 is likely to be below market
expectations and will now be broadly in line with that reported in the previous
financial year.  This slowdown mainly arises from the impact of the FSA
investigation on BIA as sales of the products under investigation are no longer
being made. Despite the lower turnover, it is anticipated that the operating
loss, before exceptional items and goodwill impairment and amortisation, will be
in line with market expectations. This operating loss excludes any costs that
may arise from the investigation referred to above.


Regulatory Capital

The recent downturn in trading performance within BIA and the additional costs
of two FSA investigations has put increasing pressure on the group's regulatory
capital position. The group is in active dialogue with the FSA on this issue.


For further information please call:

Clifford Lockyer
Chairman and Chief Executive Officer
07967 680565



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