Result of EGM

Derwent Valley Holdings PLC
08 January 2007

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES,
                           AUSTRALIA, CANADA OR JAPAN

Derwent Valley Holdings plc
8 January 2007

            Derwent Valley Holdings plc ("Derwent" or the "Company")
            Announcement of Result of Extraordinary General Meeting

Derwent announces that, at the Derwent EGM held earlier today for Derwent's
shareholders to approve the proposed merger of Derwent and London Merchant
Securities plc (the "Merger"), all the resolutions proposed in connection with
the Merger were passed by the Company's shareholders.

All resolutions proposed at the Company's EGM were carried on a show of hands.
The proxy figures for the resolutions will be shortly displayed on the Company's
website, www.derwentvalley.co.uk.

Indicative timetable

The indicative timetable for implementation of the Merger is currently expected
to be as follows:

LMS Scheme Meeting                                                           11.00 a.m. on 10 January 2007
LMS Extraordinary General Meeting                                            11.15 a.m. on 10 January 2007
Derwent Shares trade ex-second interim dividend                                            24 January 2007
Record date for Derwent second interim dividend                                            26 January 2007
Effective Date of the Scheme                                                               1 February 2007
De-listing of LMS Shares                                                                   1 February 2007
Issue of New Derwent Shares                                                                1 February 2007
Commencement of dealings in New Derwent Shares                                8.00 a.m. on 1 February 2007
Crediting of New Derwent Shares to CREST accounts                             8.00 a.m. on 1 February 2007
Latest date for despatch of share certificates in respect of                              15 February 2007
new Derwent Shares, cheques in respect of cash
consideration and Loan Note certificates in respect of
Loan Note consideration, and for settlement of cash
consideration through CREST
Payment date for Derwent second interim dividend (not                                     23 February 2007
payable on New Derwent Shares)

Terms defined in the Prospectus dated 12 December 2006 have the same meaning in
this announcement.

Copies of the resolutions passed at the Company's EGM have been submitted to the
UK Listing Authority and will shortly be available for inspection by the public
during normal business hours any weekday (public holidays excepted) at the UK
Listing Authority's Document Viewing Facility, which is situated at:

The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: [phone]

Enquiries:
Derwent Valley Holdings plc                                           [phone]

John Burns
Simon Silver
Christopher Odom
UBS Limited (financial adviser and broker to Derwent)                 [phone]

Liam Beere
Tim Guest
Financial Dynamics (public relations adviser to Derwent)              [phone]

Stephanie Highett
Dido Laurimore

UBS Limited is acting exclusively for Derwent and no one else in connection with
the Transaction and will not be responsible to anyone other than Derwent for
providing the protections afforded to the clients of UBS Limited nor for
providing advice in relation to the Transaction or any other matter referred to
herein.

The release, publication or distribution of this announcement in jurisdictions
other than the United Kingdom may be restricted by law and therefore any persons
who are subject to the laws of any jurisdiction other than the United Kingdom
should inform themselves about, and observe, any applicable requirements.  This
announcement has been prepared for the purposes of complying with English law
and the information disclosed may not be the same as that which would have been
disclosed if this announcement had been prepared in accordance with the laws of
jurisdictions outside of England.  This announcement does not constitute an
offer to sell or invitation to purchase any securities or the solicitation of
any vote or approval in any jurisdiction.


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