Final Results

Intermediate Capital Group PLC
3 April 2001

                                                                              

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2001

Intermediate Capital Group PLC ('ICG'), the leading specialist European
provider of mezzanine finance, announces its results for the year ended 31
January 2001.

Financial highlights:

*    Core income up 43% to £33.5m
     
*    Net capital gains up 109% to £24.5m
     
*    Pretax profits up 65% to £58m
     
*    Proposed final dividend of 17.3p making 25p per share for the year,
     a 13% increase
     
*    Loan book increased by 35% to a record £620m


Operational highlights:

*    A record £510m of financings arranged during the year
     
*    A new Euro350m (£215m) CDO raised
     
*    A new Euro475m (£290m) mezzanine fund raised
     
*    Funds under management reach £1bn

Commenting on the results, Murray Stuart, Chairman of ICG said:

'ICG had an outstanding performance in its financial year ended 31 January
2001 with every area of its business producing record results.

The strong growth in new lending has resulted in our loan book nearly
doubling over the last three years.  Both core income and pretax profits
have doubled over the last two years.  The year has also seen a substantial
increase in our fund management business with funds under management
reaching £1bn, four times higher than two years ago.

Although any significant economic downturn in the UK and Continental Europe
would impact our business, there are as yet no real signs of this
happening.  We remain confident of the continuing long term growth of the
two markets in which we operate, namely European mezzanine finance and high
yield debt fund management.'

Enquiries:

Tom Bartlam, Managing Director,                        [phone]
Intermediate Capital Group PLC


Gill Ackers/Simon Sporborg,                            [phone]
Brunswick Group Limited

Note to the Editors

A brief explanation of Intermediate Capital Group's lending activities is
attached.

Results

Last year ICG made record pre-tax profits of £58m which represented an
increase of 65% over the previous year.  The pretax return on shareholders
funds increased to 34% from 31% the previous year.

Dividends

The Board is recommending a final dividend of 17.3p per share to be paid on
25th May 2001 to those shareholders on the Register on 4th May 2001.  This,
together with the interim dividend of 7.7p, brings the total for the year
to 25.0p net per share, an increase of 13% over last year's dividend.  This
dividend is covered 2.8 times by post tax earnings.  Our policy is to
provide steady dividend growth, subject to core income continuing to grow
at a reasonable rate.

Core Income

Core income, which ICG defines as net interest income plus fee income less
related administrative expenses, rose to £33.5m, an increase of 43%.

Net interest and dividend income grew by 45% to £29.8m, primarily as a
result of increased shareholders funds, the increased loan book and the
increased levels of rolled-up interest received.  Transaction fees
increased by 34% to £7.0m as a result of increased lending activity during
the year and fund management income increased by 65% to £5.6m primarily as
a result of increased funds under management for both high yield debt and
mezzanine finance.  Total fee income rose by 45% to £13.3m.  Operating
expenses increased by 52% to £9.6m, primarily as a result of increased
staff levels and costs.  These expenses represent 29% of core income
(1999/2000 - 27%).

Capital Gains and Provisions

Gross capital gains for the year amounted to £56.9m and net provisions
totalled £16.9m.  Capital gains, net of provisions and the £15.5m cost of
the medium term incentive scheme, increased by 109% to £24.5m.

ICG's Lending Activity

ICG had an excellent year for new lending.  It arranged or invested in a
total of £510m of financings, a significant increase over the record level
of £340m it achieved the previous year.  £274m was invested on ICG's
Balance Sheet, £76m was taken by funds under its management with the
remaining £160m being syndicated to third parties.

ICG made new loans and investments to 24 different companies, of which it
arranged or co-arranged seventeen.  Of the new loans nine were in France,
seven in the UK, four in Germany, two in Denmark and one each in Austria
and Switzerland.  It is notable that the new lending in Continental Europe
represented approximately two thirds of all new lending and the Continental
proportion of ICG's portfolio has now reached 60%.

At the year end the portfolio of loans and investments, net of provisions,
amounted to £620m, an increase of 35% over the level at the beginning of
the year.

While the overall quality of the portfolio is satisfactory, there were a
small number of new underperforming investments in the second half, which,
where appropriate, have been provided against.

Funding

Having raised new equity in the previous financial year and boosted
retained earnings this year as a result of our record profits, ICG's
Balance Sheet is strong and relatively undergeared.  Total indebtedness at
the year end amounted to £482m giving a conservative gearing ratio of 2.6:1
(2000 - 2.0:1).  Total committed debt facilities at the year end amounted
to £595m thus leaving ICG with substantial spare facilities. Given the low
gearing, ICG intends to increase its available facilities during the coming
year in order to continue to fund the growth in the loan book.

Fund Management

Last year was one of considerable growth in ICG's fund management activity,
where it serves the fast growing European markets of mezzanine finance,
high yield bonds and leveraged loans.

In the last twelve months ICG raised a new mezzanine fund of Euro475m (£290m).
This will enable ICG to continue the growth of its mezzanine funds under
management in line with the growth of its mezzanine lending business.
Despite the higher level of repayments to fund management clients, the
amount of money invested by mezzanine fund management clients increased to
£265m from £235m at the beginning of the year.

In 1999 ICG raised the first CDO fund in Europe, a fund of Euro400m (£245m),
and followed this with a new fund of Euro350m (£215m) last year.  These funds
invest primarily in Euro-denominated high yield bonds and higher yielding
loans.  ICG expects both the high yield and leverage loan markets to
continue to grow in support of the active buyout market.  While there has
been evidence of fragility in the European High Yield Market, which is over
burdened with volatile telecom issues, the number of quality industrial
credits is gradually improving the breadth of the market.  This diversity
is essential to the future health of the high yield market.  Overall ICG is
confident that there is further scope to increase its fund management
activity in both the high yield and leverage loan markets.

As managed funds grow so do ICG's revenues from these activities,
increasing last year to £5.6m.  Whereas the fees of £3.9m derived from
mezzanine fund management translate almost entirely into profit, the fees
of £1.7m from high yield fund management were last year largely absorbed by
the costs of operating this new division.  In future the fee income from
this new activity is forecast to grow more rapidly than costs, hence it
should become increasingly profitable.

ICG and the European Mezzanine Market

Last year saw new record levels of activity in the UK and European buyout
markets.  The principal features of the market were firstly the increase in
the number of very large transactions and secondly the growth in
Continental European activity, which last year was significantly higher
than in the UK.  We expect both these trends to continue.  This growth
continued to be driven by the strong supply of companies for sale and the
strong demand for such companies from financial buyers who had large
amounts of finance available in the form of both equity and debt.  This
active LBO market led to higher demand for mezzanine, increased deal flow
for ICG and in turn record levels of new lending by ICG.

Previous Statements have referred to the trend of banks and investment
banks offering senior debt and mezzanine debt as a one-stop debt financing
package.  This trend has increased over the last year, becoming more widely
practised across Europe, and represents the major competitive threat to
ICG.  However, while these banks' desire to arrange mezzanine loans has
grown, there has been little change in the relative lack of enthusiasm of
most of them for retaining significant amounts of mezzanine on their own
Balance Sheets.  Many of them are often keen to offer some of these
mezzanine assets to ICG, and, unless a general mezzanine syndication market
develops, this is expected to continue.

The high yield bond market continues to be a competitive alternative to
mezzanine finance in larger transactions.  However, this market has been
particularly volatile in the last six months as a result of tightening debt
markets worldwide and the poor performance of some telecom issues which
make up much of the European market.  This has made high yield bond issues
more difficult for all but the larger and safer issues.  The lack of
certainty in high yield issuance has resulted in some opportunities for
mezzanine at the larger end of the market.

A number of new large mezzanine funds have entered the market during the
year.  While to date they have made little impact on the market they must
be expected in due course to provide more competition as they seek to win
mezzanine business.

ICG continues to benefit from its strong reputation in the European
mezzanine market, its ability to be flexible in structuring loans and to be
fast and reliable in decision making.  Its commitment of increasing levels
of high quality human resource to the market remains greater than any of
its competitors and helps ICG sustain its leading market position.

As a result of the tightening of the debt markets, ICG has been able on
occasions to slightly increase the cash margin it obtains on its new loans.
In addition, last year saw an increasing trend to structure some of
mezzanine's return in the form of roll-up interest with a reduced level of
warrants.  This gives more certainty to returns but less upside potential
and therefore less capital gain if an investment performs particularly
well.  However, given the high multiples being paid for some businesses at
present, this adjustment to the mezzanine return structure is often
attractive.  We believe this trend is likely to continue.  The overall
pricing obtained on new investments over the last year has been
satisfactory.

Prospects

ICG has had a good start to the new financial year with strong new lending
activity.  It has to date arranged or provided £140m of new loans for six
different companies and invested £60m on its own Balance Sheet.  This
should help produce further growth in net interest income in the first half
of the year.  With the economic background being somewhat less settled than
for some time, it is too early to predict levels of new lending activity
for later in the year.  Nevertheless ICG expects to continue to grow its
loan book in the current year.

Fee income from fund management activities will further increase this year
and ICG will seek to continue to grow its high yield fund management
activities during the year.

As a consequence of the good prospects for net interest income and fee
income ICG is confident of achieving further core income growth in the
current year.

It is most unlikely that capital gains in the current year will match the
very high level achieved in the last financial year and they are expected
to return to less exceptional levels.

Despite the risk of a weakening in the economic environment, which might
impact the performance of our loan portfolio and levels of new lending, ICG
believes it operates in attractive growth markets and continues to look
forward to the future with confidence.

INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 January 2001

                                                 Year to     Year to
                                                  Jan 01      Jan 00
                                                      £m          £m
                                                                    
                                                                    
Interest and dividend income                        55.8        36.0
                                                                    
Gain on disposals                                   56.9        28.9
Fee and other operating income                      13.3         9.2
                                                  ------      ------
                                                   126.0        74.1
Interest payable and similar charges              (26.0)      (15.5)
Provisions against loans and investments          (16.9)       (8.1)
Administrative expenses                           (25.1)      (15.4)
                                                                    
                                                                    
Profit on ordinary activities before taxation       58.0        35.1
Tax on profit                                     (17.5)      (10.3)
                                                  ------      ------
Profit on ordinary activities after taxation        40.5        24.8
Dividend proposed                                 (14.6)      (12.2)
                                                  ------      ------
Retained profit transferred to reserves             25.9        12.6
                                                  ======      ======
Earnings per share                                 69.2p       49.2p
All activities represent continuing operations                      


Profit on ordinary activities before taxation is split as follows:

                                 Core Income        Capital Gains
                                  Year to  Year to  Year to  Year to
                                   Jan 01   Jan 00   Jan 01   Jan 00
                                       £m       £m       £m       £m
Income                                                              
Interest and dividend income         55.8     36.0        -        -
Gain on disposals                       -        -     56.9     28.9
Fee and other operating income       13.3      9.2        -        -
                                   ------   ------   ------   ------
                                     69.1     45.2     56.9     28.9
Less:                                                               
Interest payable and similar       (26.0)   (15.5)        -        -
charges
Provisions against loans and            -        -   (16.9)    (8.1)
investments
Administrative expenses and         (9.6)    (6.3)   (15.5)    (9.1)
incentive payments
                                   ------   ------   ------   ------
                                     33.5     23.4     24.5     11.7
                                   ======   ======   ======   ======

INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED BALANCE SHEET
For the year ended 31 January 2001

                                                   Year to   Year to
                                                    Jan 01    Jan 00
                                                        £m        £m
                                                                    
Fixed assets                                                        
Tangible assets                                        0.3       0.3
                                                                    
Loans                                                539.5     409.5
                                                                    
Investments                                           80.4      50.9
                                                                    
Current assets                                                      
Debtors                                               19.9      24.1
Loans and investments                                 46.7      27.3
Cash at bank                                           3.1       0.1
                                                    ------    ------
                                                      69.7      51.5
                                                    ------    ------
                                                                    
                                                    ------    ------
Total assets                                         689.9     512.2
                                                    ------    ------
                                                                    
Capital and reserves                                                
Called up share capital                               11.7      11.7
Share premium account                                 85.0      84.7
Capital redemption reserve                             1.4       1.4
Profit and loss and other reserves                    87.7      61.8
                                                    ------    ------
Equity shareholders' funds                           185.8     159.6
                                                                    
Provisions for liabilities and charges                   -       0.1
Creditors: amounts falling due after more than                      
one year                                             461.2     324.9
Creditors: amounts falling due within one year        42.9      27.6
                                                    ------    ------
                                                                    
                                                    ------    ------
Total capital and liabilities                        689.9     512.2
                                                    ------    ------

INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED CASH FLOW
For the year ended 31 January 2001

                                                   Year to   Year to
                                                    Jan 01    Jan 00
                                                        £m        £m
                                                                    
Operating activities                                                
Interest and dividends received                       55.4      30.5
Gain on disposals                                     57.4      28.9
Fee and other operating income                        13.2       9.6
Administrative expenses                             (19.0)    (11.5)
                                                    ------    ------
                                                     107.0      57.5
                                                                    
Interest paid                                       (24.8)    (14.8)
                                                    ------    ------
                                                                    
Net cash inflow from operating activities             82.2      42.7
                                                                    
Taxation paid                                       (14.7)     (9.9)
                                                                    
Capital expenditure and financial investment                        
Loans and investments made                         (274.2)   (196.7)
Realisations of loans and investments                115.2      96.3
Loans for syndication                               (22.8)     (7.7)
                                                    ------    ------
                                                   (181.8)   (108.1)
                                                                    
Debtors relating to investments                          -    (16.2)
Purchase of tangible fixed assets                    (0.1)     (0.3)
                                                                    
                                                    ------    ------
                                                   (181.9)   (124.6)
                                                    ------    ------
                                                                    
Equity dividends paid                               (13.5)     (9.6)
                                                                    
                                                    ======    ======
Net cash outflow before financing                  (127.9)   (101.4)
                                                    ======    ======
                                                                    
Financing                                                           
Increase in share capital                              0.3      54.9
Increase in debt                                     130.6      43.7
                                                    ------    ------
                                                                    
Increase/(decrease) in cash and cash equivalents       3.0     (2.8)
                                                    ======    ======

The financial information set out in the announcement does not constitute
the group's statutory accounts for the years ended 31 January 2001 or 2000.
The financial information for the year ended 31 January 2000 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under s237(2) or (3)
Companies Act 1985. The statutory accounts for the year ended 31 January
2001 will be finalised on the basis of the financial information presented
by the directors in this preliminary announcement and will be delivered to
the Registrar of Companies following the company's annual general meeting.

NOTE TO EDITORS

ICG was founded in 1989 and was successfully floated in 1994.  Its
principal business is to arrange and provide intermediate, or mezzanine,
capital for companies in the UK and Continental Western Europe.  ICG lends
from both its own resources and from third party funds under its
management.  Mezzanine finance ranks in terms of risk and reward between
bank debt and equity capital.  In return for providing finance, ICG seeks a
strong cash yield and an additional return related to the success of the
investee company, usually in the form of a capital gain.

Mezzanine finance has been principally used to finance management buyouts
but is increasingly used as expansion and acquisition capital.

ICG also has a fast growing high yield debt fund management business.

ICG now has a market capitalisation of £425m.

In the twelve months ending 31 January 2001 the 24 new loans and
investments made by ICG were as follows:

Clydesdale Financial Services is a finance company providing point of sale
arranged credit services for the high street retailers. ICG arranged and
provided a mezzanine facility of £12.5m to assist in the buyout from Next
Group.

CPL Aromas is one of the UK's leading independent designers and
manufacturers of fragrances and flavours. As part of the funding for taking
the company from public to private ownership ICG arranged and provided a
mezzanine facility of £6.5m.

De Dietrich is a French listed conglomerate operating in Heating Equipment,
Railway Equipment and Process Equipment for the fine chemical and
pharmaceutical industry. ICG arranged a mezzanine bond of Euro 64m to
assist in the public to private buyout.

DSV is a quoted Danish company in the road transportation and logistics
sector. ICG arranged a mezzanine facility of DKK 750m to assist in the
purchase of DFDS Dan Transport.

Elis is the leading French textile rental and cleaning business supplying
hotels, restaurants, hospitals and industry. ICG took a participation of
USD 15m in the refinancing of the group.

Focus is a leading D.I.Y. retailer in the U.K. ICG arranged a £25m facility
to assist in the acquisition of Great Mills.

Frans Bonhomme is France's leading distributor of plastic pipes and
couplings for the building and civil engineering industries.  ICG arranged
the mezzanine facility of FF 400m to assist in the buyout.

HMY is the French and Spanish market leader in supermarket equipment
manufacturing, such as shelving and checkouts. ICG arranged the mezzanine
bond of FF 220m to assist in the buyout.

Jallatte is the French market leader and no.2 European leader in the
manufacture and distribution of protective shoeware. ICG took a
participation of Euro 20m in the mezzanine facility provided to assist in
the acquisition of Almar, the largest European manufacturer of safety
shoes.

Kiekert is a world market leader for automotive lock systems based in
Germany. ICG co-arranged a mezzanine facility providing Euro 30m to support
taking the company from public to private ownership.

MGE is the leading European manufacturer and supplier of uninterrupted
power supplies for IT and electrical installations. ICG arranged the FF
600m mezzanine bond required to assist in the buyout. ICG also took an
equity stake of FF 10m.

Orefi, an existing borrower, is a leading French wholesaler of industrial
supplies and consumables. ICG arranged and provided additional mezzanine
finance of FF 34m to assist in funding an acquisition.

Pinewood is the leading film studio complex in Europe. ICG arranged and
provided a £10m mezzanine facility to assist in the buyout from the Rank
Group.

Plastimo is a manufacturer and distributor of recreational marine
equipment. ICG arranged and provided a mezzanine facility of FF 61m to
refinance an existing shareholder loan.

Saveurs (Societe Jarnysienne) conceives and produces a wide range of
sauces, aromatic ingredients and food mixtures for the European food
manufacturing industry. ICG took a participation of FF 35m in the mezzanine
facility to assist in the buyout.

Sound Holdings is a company formed to acquire Microtronic, a Danish
company, which is the leading hearing aid component supplier in the world.
ICG invested DKK125m to help finance the buyout and to acquire Kirk, a
company involved in the design and manufacturer of transducers and
connectors in the telecoms industry.

Steiner Industries produces re-usable plastic packaging and tray systems
and plastic garden furniture.  ICG took a participation of Euro 7m in the
mezzanine facility provided to refinance the company to allow for continued
growth.

Takko is among the leading German fashion apparel retailers in the low
price segment of the market.  ICG arranged the mezzanine facility of DEM
200m to assist in the buyout from the German retailer Tengelman.

Target is a leading operator of express delivery services in the UK. ICG
took an £11m participation in the mezzanine facility provided to assist the
buyout.

Tata Tea is a major Indian conglomerate. ICG arranged a mezzanine facility
of £40m to assist in the acquisition of Tetley, one of the world's leading
tea companies.

TMD Friction is the leading European (no.2 worldwide) manufacturer of brake
pads and brake linings for the automotive industry. ICG co-arranged the
mezzanine facility of Euro 90m to assist the LBO.

Tunstall is the UK's leading manufacturer of social alarm systems also
providing installation and maintenance services.  ICG took a participation
of £7.25m in the mezzanine facility provided to assist in the buyout.

Vantico is a leading Swiss based speciality chemical manufacturer.  ICG
took a participation of Euro 7m in the facility provided to assist the
buyout.

Victorvox is an independent service provider for mobile and fixed
telecommunication services in Germany. ICG arranged and provided a Euro 15m
mezzanine loan to provide funding prior to a proposed IPO.