Final Results

Intermediate Capital Group PLC
3 April 2002

            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2002

Intermediate Capital Group PLC ('ICG'), the leading specialist European
provider of mezzanine finance, announces its results for the year ended 31
January 2002.

Financial highlights:

* Core income, the best measure of ICG's growth, up 16% to £39.0m

* Net capital gains of £2.7m (2001 - £24.5m)

* Pretax profits of £41.7m (2001 - £58.0m)

* Proposed final dividend of 19.4p making 28p per share for the year, a 12%
  increase

* Loan book increased by 12% to a record £704m


Operational highlights:

* £308m of financings arranged during the year

* A new Euro450m (£280m) loan fund raised

* Funds under management reach £1.2bn, a 20% increase

* Hong Kong office opened to cover Asia Pacific market


Commenting on the results, John Manser, Chairman of ICG said:

'In the context of a testing business environment I am pleased to report a
good performance by ICG in the last financial year.

Despite the economic slowdown we yet again increased our loan book to a new
record level. Core income, which is the key element of ICG's profits, showed
further strong growth.

We are very pleased to have successfully launched a new loan fund, resulting
in our funds under management increasing to approximately £1.2bn at the year
end.

We have had an encouraging start to our current financial year, having
completed four new deals. While the current business environment presents us
with challenges it also offers us good opportunities from which we believe
ICG and its shareholders can benefit.'

Enquiries:

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

Gill Ackers/Tricia Parish, Brunswick Group Limited              [phone]

Note to the Editors

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

Results

Pretax profits for the year amounted to £41.7m, down from £58.0m in the
previous year. This reduction was in line with expectations given the weak
market for realisations and the exceptionally high levels of capital gains in
the previous year.

Dividends

The Board is recommending a final dividend of 19.4p net per share to be paid
on 24 May 2002, which, with the interim dividend of 8.6p per share, brings
the total for the year to 28.0p net per share, an increase of 12% over last
year's dividend.

It is ICG's policy to deliver continuing dividend growth, driven by growth in
core income. This year's dividend maintains our record of producing double
digit dividend growth every year since we floated in 1994.

The dividend is covered 1.7 times by core income net of tax and 1.8 times by
post tax earnings.

Core Income

Core income, the most important element of our profits, which ICG defines as
net interest income plus fee income less related administrative expenses,
rose to £39.0m, an increase of 16%, on the back of growth in both net interest
income and fund management fee income.

Net interest and dividend income grew by 21% to £36.0m, primarily as a result
of the increased loan book and the increased levels of rolled-up interest.
Transaction fees reduced to £4.7m compared to £7.0m last year as a result of
lower lending activity. Fund management income increased by 57% to £8.8m
primarily as a result of increased funds under management and the increased
amount of carried interest profit share on our mature mezzanine funds. Total
fee income amounted to £14.3m (2001 - £13.3m).

Operating expenses increased by 18% to £11.3m, primarily as a result of
increased staff costs, higher professional fees and the costs of our new Hong
Kong office. These expenses represent 29% of core income (2001 - 29%).

Capital Gains and Provisions

Gross capital gains for the year amounted to £21.1m compared with the record
£56.9m last year. ICG made provisions of £18.2m in respect of loans to four
companies. Following a write back of a £2m provision no longer required, net
provisions amounted to £16.2m. Capital gains, net of provisions and the £2.2m
cost of related employee incentives, amounted to £2.7m.

The Loan Portfolio

At the year end our portfolio of loan and investments amounted to £704m,
which represented a good increase of 12% over the year.

In a less active market we had a satisfactory year for new lending. We
arranged and provided a total of £308m of funding in respect of 16 deals, of
which £176m was invested on our own Balance Sheet, the balance being taken by
our fund management clients and syndicated to third parties. We were
particularly active in France, where we made eight new investments, and at
the year end our continental European portfolio represented over 60% of our
loan book. The lower level of M&A activity also resulted in fewer
realisations and thus a lower level of repayments, which amounted to £81m in
respect of 12 investments.

The more difficult economic environment has inevitably led to
underperformance by some companies in our portfolio. In a small number of
these instances, where the companies were already performing poorly earlier
in the year, their situation is now of greater concern and in these cases we
have made appropriate provisions. In most other cases the level of
underperformance is currently of less concern, and we would expect the
trading of these companies to start to improve once we see an upturn in the
global economy.

Overall we are pleased to be able to report that the bulk of our portfolio is
performing satisfactorily.

Funding

During the year we took the opportunity to increase our facilities so as not
to be constrained in our ability to finance new lending opportunities in what
could be an attractive environment for mezzanine investment. We raised £100m
through a further private placement with maturities between five and ten
years and have since the year end raised an additional £90m of medium term
bank facilities. This has resulted in our total borrowing facilities
amounting to £768m. At the year end our total borrowings amounted to £523m,
which represents a relatively conservative gearing ratio for a financial
institution like ICG of 2.6:1.

Fund Management

Last year saw further growth in our fund management activities with funds
under management increasing by 20% to £1.2bn.

The highlight of the year was raising a new Euro450m (£280m) loan fund which
will invest primarily in higher yielding European bank loans. The fund
attracted considerable investor interest even in the difficult investment
climate at the end of September and we believe the opportunity exists to
raise further funds in this area.

Our two existing CDO funds totalling Euro750m (£470m), are both fully
invested. The European high yield bond market again performed very badly last
year. Although our CDOs have continued to significantly outperform the
market, their absolute performance has been worse than our original
expectations.

In mezzanine fund management we continued to steadily invest our recent
Euro475m (£295m) mezzanine fund. Higher than expected repayments of assets
held by the earlier, more mature funds however led to the amount of money
invested falling slightly to £250m at the year end.

ICG and the European Mezzanine Market

Last year, as concerns about the economy mounted and corporate confidence
fell, there was a material reduction in the level of activity in the UK and
European buyout markets. The value of buyouts in the second half of 2001 was
45% less than in the same period of the previous year.

In this environment we have seen most banks becoming less aggressive in their
senior lending except for the large safer transactions. Most of them have
also been more wary of taking on large underwriting risks since September. As
a consequence, the demand for mezzanine finance has been quite good as it is
the natural financing instrument to fill the gap left by the banks.

Overall we have seen most financial structures becoming somewhat more
conservative since September with lower levels of gearing which is of course
a welcome trend. In terms of pricing on new deals we have comfortably been
able to maintain the cash yield as well as the overall level of projected
returns.

During the last financial year the high yield bond markets were only really
open for bond issues in excess of £100m for larger safer companies.
Consequently we rarely compete with that market.

The competitive threat from banks providing mezzanine themselves has reduced
somewhat from the previous year. There remain a small number of banks that
are particularly keen to build their own mezzanine portfolio and they have
continued to be active in the market place along with a few independent
mezzanine providers.

While at present the competitive threat from banks offering both senior debt
and mezzanine may have reduced, in due course we expect this trend to
reverse.

In 2001 ICG was the second most active arranger of mezzanine in European
buyouts.

We recognise that we are operating in a market place which is already
competitive and may become more so. We are confident we will continue to
succeed in the winning of mezzanine mandates and maintaining a good market
share because of our reliability, our geographic coverage, our commercial
flexibility and the quality and size of our professional team.

The Asian Mezzanine Market

Last autumn we decided to set up a small office in Hong Kong with two
experienced ICG professionals from Europe and we expect to add two further
executives with suitable local knowledge and experience. We conducted
detailed research over the previous twelve months on the prospects for
mezzanine in the Asia Pacific market place and came to the conclusion that
there are potentially interesting opportunities in selected countries within
the region. Apart from ICG, there is currently no dedicated provider of
mezzanine in that market but there are a number of major international
private equity houses who are well known to us and who are generally of the
view that there will be increasing opportunities for mezzanine in buyouts,
acquisition finance and refinancings.

As a result of opening the office, we should be in a better position to
assess the opportunities in the Asia Pacific mezzanine marketplace and,
subject to this, build a leading position in the region.

Prospects

While it remains difficult to forecast market conditions, it is our
assumption in looking at the year ahead that activity levels will remain well
below their peak of 2000, although we expect to see some recovery from the
very depressed level of the last quarter of 2001. In this uncertain market a
more conservative approach by the banks should lead to relatively good demand
for mezzanine and a reasonable number of attractive opportunities from which
ICG is well placed to benefit.

We have started the year well, having completed four new loans in the first
two months of our financial year, of which nearly £60m has been invested on
our Balance Sheet. We would not expect this rate of investment to be
continued throughout the year, but do believe it realistic to expect to be
able to continue to grow our loan book. This should lead to growth in net
interest income.

During the year we will continue our efforts to increase funds under
management with particular emphasis being placed on the leveraged loan
market. In our existing high yield CDOs improvement in performance will
depend on a recovery in the high yield market.

There are a number of companies in our portfolio that are seeking a sale or
an IPO this year and these are capable of producing good capital gains. The
achievement of such gains is, of course, dependent on the strength of the M&A
and IPO markets during the year.

Our portfolio continues to be well diversified both geographically and across
a wide range of sectors, but it is not immune to the effects of a prolonged
recession across Europe. We will continue to devote much time to managing the
portfolio and protecting its value.

In today's changing environment we continue to believe in the growth
prospects of the markets in which we operate and look forward to the future
with confidence.


INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 January 2002


                                                        Year to    Year to
                                                         Jan 02     Jan 01
                                                             £m         £m
___________________________________________________________________________
      Interest and dividend income                         62.9        55.8

      Gain on disposals                                    21.1        56.9
      Fee and other operating income                       14.3        13.3
                                                      _________   _________
                                                           98.3       126.0
      Interest payable and similar charges               (26.9)      (26.0)
      Provisions against loans and investments           (16.2)      (16.9)
      Administrative expenses                            (13.5)      (25.1)
___________________________________________________________________________
      Profit on ordinary activities before taxation        41.7        58.0
      Tax on profit                                      (12.8)      (17.5)
                                                      _________   _________
      Profit on ordinary activities after taxation         28.9        40.5
      Dividend proposed                                  (16.4)      (14.6)
                                                      _________   _________
      Retained profit transferred to reserves              12.5        25.9
                                                      _________   _________
      Earnings per share                                   49.3       69.2p
      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 02     Jan 01           Jan 02     Jan 01
                                    £m         £m               £m         £m
______________________________________________________________________________
  Income
  Interest and dividend
  income                          62.9        55.8               -          -
  Gain on disposals                  -           -            21.1       56.9
  Fee and other
  operating income                14.3        13.3               -          -
______________________________________________________________________________
                                  77.2        69.1            21.1       56.9
  Less:
  Interest payable and
  similar charges               (26.9)      (26.0)               -          -
  Provisions against
  loans and investments              -           -          (16.2)     (16.9)
  Administrative expenses and
  incentive payments            (11.3)       (9.6)           (2.2)     (15.5)
______________________________________________________________________________
                                  39.0        33.5             2.7       24.5
______________________________________________________________________________



INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED BALANCE SHEET
For the year ended 31 January 2002

                                                  Jan-02    Jan-01
                                                      £m        £m
  Fixed assets
  Tangible assets                                    1.5       0.3

  Loans                                            633.3     550.0

  Investments                                       70.7      80.4

  Current assets
  Debtors                                           14.4       9.4
  Loans and investments                             33.0      46.7
  Cash at bank                                       1.1       3.1
                                                ________  ________
                                                    48.5      59.2
                                                ________  ________
___________________________________________________________________

  Total assets                                     754.0     689.9
___________________________________________________________________
  Capital and reserves
  Called up share capital                           11.7      11.7
  Share premium account                             85.2      85.0
  Capital redemption reserve                         1.4       1.4
  Profit and loss and other reserves               100.2      87.7
                                                ________  ________
  Equity shareholders' funds                       198.5     185.8

  Creditors: amounts falling due
  after more than one year                         523.5     461.2
  Creditors: amounts falling due
  within one year                                   32.0      42.9
___________________________________________________________________
  Total capital and liabilities                    754.0     689.9
___________________________________________________________________



INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED CASH FLOW
For the year ended 31 January 2002
                                                       Year to    Year to
                                                        Jan 02     Jan 01
                                                            £m         £m
      Operating activities
      Interest and dividends received                     58.5       55.4
      Gain on disposals                                   21.3       57.4
      Fee and other operating income                      16.0       13.2
      Administrative expenses                           (25.6)     (19.0)
                                                      ________   ________
                                                          70.2       107.0

      Interest paid                                     (26.7)     (24.8)
                                                      ________   ________
      Net cash inflow from operating activities           43.5       82.2

      Taxation paid                                     (16.5)     (14.7)

      Capital expenditure and financial investment
      Loans and investments made                       (184.0)    (274.2)
      Realisations of loans and investments               82.7      115.2
      Loans for syndication                               13.8     (22.8)
                                                      ________   ________
                                                        (87.5)     (181.8)

      Purchase of tangible fixed assets                  (1.3)      (0.1)
                                                      ________   ________
                                                        (88.8)     (181.9)
                                                      ________   ________
      Equity dividends paid                             (15.2)     (13.5)
__________________________________________________________________________
      Net cash outflow before financing                 (77.0)    (127.9)
__________________________________________________________________________
      Financing
      Increase in share capital                            0.2        0.3
      Increase in debt                                    74.8      130.6
__________________________________________________________________________

       (Decrease)/increase in cash and cash equivalents  (2.0)        3.0
__________________________________________________________________________

The financial information set out in the announcement does not constitute the
group's statutory accounts for the years ended 31 January 2002 or 2001. The
financial information for the year ended 31 January 2001 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 2002 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 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 also has a specialist fund management
business relating to higher yielding European debt.

ICG makes mezzanine loans 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 has a fast growing fund management business which invests institutional
client money in European high yield debt and leveraged loans. Total funds
under management amount to £1.2bn.

ICG now has a market capitalisation of £450m.

In the year ended 31 January 2002 ICG made the following loans and
investments:

Baxi is a manufacturer of domestic hot water and central heating boilers and
products based in the U.K. ICG took a participation of £10m in the mezzanine
facility provided to assist in the buyout.

Cantrell & Cochrane is a leading Irish manufacturer, wholesaler and
distributor of alcoholic and non-alcoholic drinks. In November 2001 ICG
assisted in refinancing the company by arranging an additional mezzanine
facility of Euro35m.

Courtpaille is a leading chain of grill restaurants in France. ICG took a
participation of Euro10.6m in the mezzanine facility provided to assist in
the buyout.

Craegmoor is a UK operator of homes in the long term care market. ICG took a
participation of £6m in the mezzanine facility provided to assist in the
buyout.

Duni AB is a leading supplier of tabletop products for retail, professional
and travel markets based in Sweden. ICG arranged a mezzanine facility of
Euro44.5m to assist in refinancing the company.

Eliokem, based in France, is a leading international manufacturer and
supplier of speciality chemicals used in paints, masonry coatings, rubber,
plastic, printer toners, textiles and latex. ICG arranged and provided a
Euro20.7m mezzanine facility to assist in the buyout.

ERM is a leading global provider of environment consultancy and risk
management services for both the private and public sectors. ICG arranged and
provided a mezzanine facility of $25m to assist in the buyout.

Eurogestion, an existing borrower, is a French company with a leading
position in pest control for the housing and commercial building sectors. ICG
arranged a mezzanine facility of FF 46m to assist in the purchase of the
market leader in Italy for pest control services.

Gerflor, based in France, is the number two in Europe in the manufacture
of PVC flooring. ICG took a participation of FF 170m in the mezzanine
facility provided to assist in the buyout.

Leisure Link manages a wide range of both gaming machines and other
entertainment machines. ICG arranged the mezzanine facility of £37.5m
provided to assist in this secondary buyout.

Malmberg is a leading publisher of educational material in the Netherlands
and Belgium. ICG provided Euro12.5m of the mezzanine facility required to
assist in the buyout.

Picard is a leading French manufacturer, distributor and retailer of
frozen foods. ICG arranged and provided a mezzanine facility of Euro164m to
assist in the buyout.

Pinewood, an existing borrower based in the U.K., is the leading film studio
complex in Europe. ICG arranged and provided a mezzanine facility of £3m to
assist in the acquisition of Shepperton Studios.

Plastimo, an existing borrower based in France, is a manufacturer and
distributor of recreational marine equipment. ICG arranged and provided a
mezzanine facility of FF 53m to assist in the purchase of a U.K. nautical
equipment distributor.

Retif is the leading French wholesaler and retailer of equipment and display
units used by small retail outlets, restaurants and hotels. ICG arranged and
provided a mezzanine facility of Euro21.4m to assist in the buyout.

Sebia is a French based company operating in the clinical diagnostic market,
developing and producing equipment and reagents. ICG arranged and provided a
mezzanine facility of Euro11.5m to assist in the buyout.


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