Subscription Update

Hampden Underwriting Plc
03 October 2007



                                                                  3 October 2007

                            Hampden Underwriting plc

                       Total fund raising of £7.4 million
                   and closing of the offer for subscription


Hampden Underwriting plc ('Hampden Underwriting' or the 'Company'), which has
been incorporated primarily to provide a limited liability direct investment
into the Lloyd's insurance market through its subsidiary underwriting vehicle,
Hampden Corporate Member Limited ('HCM'), announces that its offer for 
subscription ('the Offer') has closed and confirms that it has raised in total
gross proceeds of £7.4 million at a price of £1.00 per ordinary share.

On 4 September 2007, the Company announced that it had raised £5.2 million under 
the Offer and had extended the Offer to provide an opportunity for further
investment. Application has been made for the admission to AIM of the additional
2,171,810 ordinary shares of the Company issued since then. It is expected that
admission in relation to these additional shares will become effective
at 8.00am on 4 October 2007.

Of the total gross proceeds of the Offer, £7.04 million was subscribed in cash
and £0.34 million in shares in Heritage Underwriting Agency plc. The net 
cash proceeds from this fundraising will be used to acquire underwriting
participations in Lloyd's syndicates and invest in other Lloyd's related
opportunities. Following the recent Lloyd's auctions, the Directors expect HCM
to participate in underwriting capacity of £5.0 million at a cost of £1.0 
million through arrangements made by Hampden Agencies Limited.

Smith & Williamson is acting as the Nominated Adviser, Broker and Promoter to
the Company.

Offer Price                                                                £1.00
Number of Shares issued pursuant to the Offer                          7,410,374
Number of Ordinary Shares in issue                                     7,410,376
Estimated net proceeds receivable by the Company from the Offer     £6.9 million
Market capitalisation at the Offer price                            £7.4 million


Sir Michael Oliver, Chairman of Hampden Underwriting, said:

'This is a good result for the Company, particularly in the light of recent
market conditions. We are pleased with the outcome of the recent Lloyd's
auctions and look forward to developing the Company's business.'


Enquiries:

Hampden Underwriting                        Jeremy Evans          020 7863 6567

Smith & Williamson Corporate Finance        Azhic Basirov         020 7131 4000
Limited                                     David Jones
                                            Joanne du Plessis

Cardew Group                                Tim Robertson         020 7930 0777
                                            Shan Shan Willenbrock
                                            David Roach


About Hampden Underwriting

• Hampden Underwriting's subsidiary, HCM, will be advised by Hampden
  Agencies Limited ('HAL'). HAL is the largest provider of third party capital
  to the Lloyd's market, with over £2 billion of capacity under management in
  2007 which, the directors of Hampden Underwriting (the 'Directors') believe,
  gives it an influential voice in the Lloyd's market as a whole.

• The Directors believe that Hampden Underwriting will offer the only
  opportunity currently available for investment in a quoted company whose
  principal purpose is to participate in a spread portfolio of Lloyd's
  syndicates rather than manage syndicates itself. There are other companies
  whose shares are traded on the London Stock Exchange and whose activities
  include underwriting at Lloyd's, but the Directors believe that these do not
  provide such concentrated exposure to Lloyd's underwriting as the Company.

• The Company's strategy is to seek to generate returns for its
  shareholders primarily through:

   • the acquisition of underwriting participations in Lloyd's syndicates and
     providing the necessary supporting funds at Lloyd's.

   • the acquisition of corporate members of Lloyd's as suitable opportunities
     arise; and

   • the acquisition in other Lloyd's insurance-related investments and 
     products, if and when suitable opportunities arise.

• Hampden Underwriting will seek to benefit from the positive market
  conditions created in the wake of the recent US catastrophes. In summary:

   • The Directors believe that the main reason why recent results have been
     so much better than might have been expected from past experience is that
     Lloyd's has undertaken a comprehensive process of internal reform over the
     past few years, the most crucial component of which was the establishment 
     of the Franchise Performance Directive in 2002. For the calendar year 2005
     Lloyd's reported a loss of £103 million, in spite of the fact that it was
     trading in a year when there were some US$83 billion of major catastrophe
     losses. 2006 saw a low catastrophe incidence, which resulted in a reported
     calendar year profit of £3.7 billion, which again compares favourably with
     Lloyd's peers.

   • The Directors believe that two of the main ramifications of the large US
     catastrophe losses of 2004 and 2005 are that:

     (i)  they have led to an improvement of rating levels for certain classes 
          of business; and
     (ii) they have changed the shape of the worldwide insurance industry.

     The Directors believe that this gives the best Lloyd's syndicates a 
     significant trading opportunity for the medium term.

   • Rates have increased by substantial margins in classes of insurance
     business such as reinsurance, US property and US offshore energy following
     these losses. The Directors believe that what is arguably more important,
     however, is that there has been an erosion of worldwide competition in some
     insurance classes, especially certain sectors of the reinsurance market.

   • The Directors do not expect to see a significant softening of rates in
     many of the major catastrophe exposed insurance classes in the medium term
     and believe that current underwriting conditions offer the capability to
     produce good underwriting profits (though not indefinitely).

HAL

Through HCM, Hampden Underwriting will not invest in the Lloyd's market as a
whole, but in a carefully chosen spread portfolio of syndicates that will be
recommended by HCM's Lloyd's adviser, HAL.

HAL's advice will be based upon analysis of the past and forecasted performance
of syndicates to grade their potential to outperform the market through any
given cycle. The table below shows the way in which members advised by HAL have
outperformed relative to the Lloyd's market as a whole since 2001:

                                                     Percentage return on
                                                       capital invested

                                                 HAL-advised            Lloyd's
Year of account                                      members             market

2001                                                 (31.1)%            (45.9)%
2002                                                   34.3%              28.6%
2003                                                   52.9%              47.0%
2004                                                   26.2%              25.9%
2005 (estimate)                                       (0.5)%            (12.2)%
2006 (estimate)                                        39.8%              36.3%

Past performance should not be seen as an indication of future performance.
Sources: HAL 2001 to 2004 at 36 months, calculated from Synopsis MAIR reports.
Lloyd's Market 2001 to 2004 at 36 months from Lloyd's Global Results/ Year end
QMRs. 2005 estimates calculated from 2007 Q1 QMR returns. Lloyd's 2006 estimate
based on Lloyd's aggregate of the 2006 Q4 QMRs. HAL 2006 estimate based on a
combination of Syndicate official estimates (accounting for 64% of HAL capacity)
and Hampden Underwriting Research Syndicate estimates for remaining 36%. Funds
at Lloyd's are assumed at 40%. All returns include personal expenses but are
before members' agent's charges.

The Directors believe that another potential benefit for the Company is that HAL
has built up strategic relationships with some of the underwriters in the market
and this leaves it well placed to introduce HCM to early investments in new
syndicates and other underwriting opportunities within the Lloyd's market.


Directors

Sir James Michael Yorrick Oliver, aged 67, (Non-executive Chairman)
Sir Michael Oliver is a director of a number of investment funds, and the
chairman of a specialised Central and Eastern European fund. He was previously a
director, Investment Funds at Hill Samuel Asset Management and of Scottish
Widows Investment Partnership Limited. He was a partner in stockbrokers Kitkat &
Aitken for 20 years and subsequently managing director of Carr Kitkat & Aitken
between 1990 and 1993. He is non-executive chairman of Zirax plc and Europa Oil
& Gas (Holdings) plc, both of which are quoted on AIM.

John Andrew Leslie, aged 62, (Non-executive Director)
Andrew Leslie has 40 years' experience as an insurance broker. He started his
career with Leslie & Godwin in 1967, where he held a number of senior positions,
until he left to join Morgan Read and Coleman as a director. In 1991 he and
three others effected a management buy out of the company which was then
purchased by Arthur J. Gallagher (UK) Limited in 1996. Until recently he was a
main board director of Arthur J. Gallagher (UK) Limited.

Jeremy Richard Holt Evans, aged 49, (Non-executive Director)
Jeremy Evans joined Minories Underwriting Agencies in 1993, which was
subsequently transferred to Aberdeen Underwriting Advisers Limited, with
specific responsibility for its corporate capital plans, including the
development of a conversion scheme for existing members. He has been a director
of HAL since 1999 and is also the managing director of Nomina plc.

Harold Michael Clunie Cunningham, aged 59, (Non-executive Director)
Michael Cunningham joined Neilson Hornby Crichton & Co in 1976, becoming a
partner in 1981. In 1986, he became a director of Neilson Cobbold Limited,
formerly Neilson Milnes Limited, which is now part of Rathbone Brothers. He has
worked in the investment management business for over 20 years and formerly had
responsibility for venture capital trusts and Rathbones Enterprise Investment
Scheme portfolios and Inheritance Tax service, which have raised over £100
million in total.


Hampden Agencies Limited

Nigel Hanbury, Chief Executive
Nigel Hanbury joined Lloyd's in 1979 as an external member and became a Lloyd's
broker in 1982. He later moved to the Members' Agency side. He serves on the
board of the Association of Lloyd's Members and was elected to the Council of
Lloyd's for 'Working Names' constituency and served on that body between 1999
and 2001, as well as participating on the Market Board and other Lloyd's
committees. In January 2005, Nigel was re-elected to the Council for his second
three year term.

Nick Carrick, Hampden Underwriting Research
Nick Carrick joined Lloyd's in 1977 and moved into an underwriting agency role
in 1983. He is a Fellow of the Chartered Insurance Institute and was appointed
head of Hampden Underwriting Research in 2002.

Jeremy Evans, Director
Jeremy Evans, also a director of Hampden Underwriting, as detailed above, is an
executive director of HAL where he has particular responsibility for business
development.

This document has been approved as a financial promotion under the Financial
Services and Markets Act 2000 by Smith & Williamson Corporate Finance Limited
('S&W'), which is authorised and regulated by the Financial Services Authority.
S&W is acting for Hampden Underwriting plc and no-one else and will not be
responsible to anyone other than Hampden Underwriting plc for providing the
protections afforded to customers of S&W. This document is for information only
and does not form part of any offer or invitation to subscribe for shares. This
document is not a prospectus, but an advertisement, and investors should not
subscribe for the shares referred to in this document except on the basis of the
prospectus dated 13 August 2007 which is available from: Tax Efficient
Solutions, Smith & Williamson Investment Management Limited, 25 Moorgate,
London, EC2R 6AY (tel: [phone]; email: [e-mail]).

This document should not be distributed directly or indirectly, to any persons
with addresses in the United States of America (or any of its territories or
possessions), Canada, Japan, Australia or the Republic of South Africa, or to
any corporation, partnership or other entity created or organised under the laws
thereof, or in any other country outside the United Kingdom where such
distribution may lead to a breach of any legal or regulatory requirement.  The
shares referred herein have not been and will not be registered under the United
States Securities Act 1933 (as amended) or under any of the applicable
securities laws of Canada, Japan, Australia or the Republic of South Africa and
may not, subject to certain exceptions, be offered for sale or sold or
subscribed directly or indirectly within the United States, Canada, Japan,
Australia or the Republic of South Africa or to or by any national, resident or
citizen of any such countries.

This document does not represent advice about subscribing for, purchasing or
selling shares and is not a substitute for independent professional advice about
legal, investment or tax matters.  It is only intended to provide some basic
information.  If you are in any doubt as to the action you should take, you are
recommended to seek your own personal financial advice immediately from your
stockbroker, bank manager, solicitor, accountant or other qualified financial
adviser authorised under the Financial Services and Markets Act 2000.  Please
note that neither Hampden Underwriting nor S&W is permitted to provide you with
legal, investment or tax advice.




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