Norwich Union Agreement

Grainger Trust PLC
30 March 2005


FOR IMMEDIATE RELEASE
30th March 2005


                              GRAINGER TRUST plc:

   MAJOR OPPORTUNITY TO EXPAND HOME REVERSION PORTFOLIO THROUGH NORWICH UNION
                                   AGREEMENT


Grainger Trust plc ('Grainger'), the UK's largest quoted residential property
investor, today announces a major opportunity to expand its home reversion
portfolio via an agreement that enables it to acquire newly originated home
reversion assets through Norwich Union. It is anticipated that by the end of
December 2006 Grainger's home reversion portfolio could grow by £180m or more
through this source alone.

Norwich Union Equity Release Limited ('NUER') is the market-leading provider of
equity release products. This agreement allows NUER to enhance its equity
release offer by providing a home reversion product for the first time. NUER
will use its nationwide direct and IFA sales and distribution network to sell
its home reversion product, and will be responsible for sales processing and
customer administration.

Grainger will set the pricing, acquire and manage each underlying property
during its occupation, and ultimately dispose of the asset on vacancy and retain
any profit on sale. These acquisitions will be financed from existing resources
together with additional debt funding if required.

The agreement will run until 31st December 2006 and, thereafter, is extendable
on a rolling six monthly basis.

Rupert Dickinson, Grainger's Chief Executive, said: 'This is a major step
forward in developing our home reversion portfolio, a key platform in our growth
strategy. We believe that, in partnership with Norwich Union and through our
existing Bridgewater business, we now have huge potential to capitalise on this
fast expanding market.'
                                    
Peter Couch, Grainger's group director of equity release, added: 'We have
essentially created a joint venture with Norwich Union, a very major force in
our market, which is unprecedented. It combines Norwich Union's national sales
and distribution network with Grainger's proven property management expertise
and appetite for these assets. This initiative will sit very well alongside our
Bridgewater brand which will continue to operate independently. We believe this
joint venture will quickly become established as the UK's leading home reversion
provider.'

Mark Kelly, director of Norwich Union Personal Finance, said: 'We believe the
equity release market will be worth in the region of £1.5bn this year and home
reversion plans will become increasingly important in the market. Mortgage
regulation requires financial advisers to consider both home reversion and
lifetime mortgage when recommending equity release products. With Norwich Union
now offering a Home Reversion Plan, the choice for advisers and their clients
has increased.'

Grainger has been advised by ABN AMRO Corporate Finance Limited.


                                     Ends.

Contact:

Rupert Dickinson, Chief Executive, Grainger.                Tel: [phone]
Andrew Cunningham,Deputy Chief Executive and 
Finance Director, Grainger.                                 Tel: [phone]
Peter Couch, Director of Grainger Equity Release            Tel: [phone]
Baron Phillips, Baron Phillips Associates.                  Tel: [phone]


Notes to Editors:
     
1.   Grainger is capitalised at £482m and is the UK's largest quoted residential 
     investment group;
     
2.   Grainger owns and manages a portfolio of over 12,000 residential units
     across the UK with a market value of approximately £1.5bn;

3.   Grainger currently provides a home reversion product through Bridgewater
     Equity Release Ltd, a wholly owned subsidiary which is fully recognised in 
     the IFA/IMA market. Bridgewater, a SHIP member, will continue to trade 
     independently of the NUER agreement;
     
4.   Home Reversion Plans - The homeowner sells all or part of the home in 
     return for a lump sum payment and the right to live in the house rent free 
     until they die or move home. The amount received is dependant on several 
     factors, the key ones being: value of the property being sold; customer 
     life expectancy/ morbidity assumptions; interest rates; house price 
     inflation; the set up and ongoing administration costs. A Home Reversion 
     Plan can offer a higher initial lump sum or guarantee a defined proportion 
     of the property to be left on death to the occupier's estate;
     
5.   Special Features of the Norwich Union Home Reversion Plan include: 
     Inheritance Protection Guarantee - Guarantees a minimum payment in case of 
     death or long term care in the early years; and House Price Inflation 
     Guarantee - Guarantees a share in exceptional house price growth;
     
6.   Lifetime Mortgages - Under this type of scheme (historically also known
     as Roll-up Mortgages) interest is rolled up and added to the outstanding 
     value of the loan until the property is eventually sold (homeowners have a 
     right to occupy the property until death). These are offered on fixed or 
     variable interest rates (usually with an associated cap). The lump sum 
     provided is calculated on a sliding scale (increasing with age), offering a 
     loan to value based on the homeowner's age.



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