FSA Update/Regulatory Capital

Berkeley Berry Birch PLC
25 April 2005

For immediate release
                                                               25th April 2005



                Berkeley Berry Birch plc ('BBB' or the 'Group'):

              Update on FSA Investigations and Regulatory Capital


Further to the announcement dated 4th April 2005, and as a result of a further
meeting and discussions with the FSA, the Board of BBB plc would like to update
the market as follows:



FSA investigations

The FSA has requested further specific information and this is in the process of
being provided by the Group over the next month. Provided that the FSA is
satisfied with this additional information, the Board believes that it should be
possible to conclude both investigations reasonably quickly. It is not possible
to estimate any settlements at this stage.



Regulatory Capital

Whilst the Group is forecast to report a positive net current asset position as
at 31 March 2005, the Group's three Financial Services subsidiaries had a
combined regulatory capital resource requirement deficit of £2.4 million as per
the unaudited FSA returns. Following the meeting with the FSA, the Directors
have clear guidance on what is required to correct the position. The FSA stated
that it is enforcing a formal timetable for the rectification of the regulatory
capital position as per its own internal procedures.



Subject to FSA approval, the Group intends to implement initiatives to comply
fully with its regulatory capital requirements.  These include a reorganisation
of the regulated business model so as to optimise its overall regulatory capital
position. Current indications are that such a reorganisation will result in an
estimated £0.6m reduction in the current regulatory capital shortfall.



The Board is exploring means of raising finance to enable those subsidiaries
concerned to comply with FSA regulatory capital requirements, the extent of
which are dependent upon the planned reorganisation.  The initiative to bring
investigations to a close will be a key element, however, the Board remains
confident of the outcome of the fund raising process.



                                    - ENDS -



For further information please call:

Clifford Lockyer
Chairman and Chief Executive Officer
07967 680565




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