Interim Results

Intermediate Capital Group PLC
3 October 2001

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2001

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

Financial highlights:


* Net interest income up 19% to £17.2m

* Fund management fee income up 84% to £4.5m

* Core income up 14% to £19.2m

* Net capital gains down 75% to £5.9m

* Pretax profits down 37% to £25.1m

* Interim dividend increases by 12% to 8.6p per share

* Loan book increased to a record £667m


Operational highlights:


* £178m of new mezzanine financings arranged in the first half

* A new Euro 450m loan fund raised

* Funds under management now exceed £1.25bn

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

'ICG has performed well in the first half, despite a more challenging market
environment.

Core income, the key element in ICG's profits, rose by 14% and the loan book
has continued to grow. Fund management, an increasingly important part of our
business, has shown further strong growth.

While the immediate outlook for the European buyout market is difficult to
forecast, the changing economic background is expected to present ICG with
significant opportunities in due course.'

Enquiries:

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

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

Note to the Editors

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



CHAIRMAN'S STATEMENT



Introduction

In this, my first statement to shareholders since I was appointed ICG's
Chairman, I am pleased to report a good performance by ICG in the six months
to 31 July 2001, which has been achieved in a more challenging market
environment.

Core Income, the key element of ICG's profits, rose by 14% to £19.2m and our
loan book has grown by 8% to £667m. Funds under management, an increasingly
important area for ICG, now exceed £1.25bn. As forecast, net capital gains of
£5.9m were much lower than the exceptionally high level of last year, and
consequently our pre-tax profits declined from £40m to £25m. We have
increased our interim dividend by 12% to 8.6p per share to reflect the growth
in core income.

The highlight for our fund management business was the establishment of a new
Euro 450m loan fund which will invest in higher yielding European bank loans.
This is an exciting development for our fund management division as we
believe this investment area has considerable growth potential.

We have, during the period, set up a small operation in Hong Kong to explore
opportunities for mezzanine investment in the Far East. We believe this
market may offer attractive growth opportunities for ICG over the medium
term.


The European mezzanine market

Although there have been a number of very large buy-outs in the first half,
there has, overall, been a slowdown in the volume of buy out activity in both
the UK and Continental Europe. At times of economic uncertainty merger and
acquisitions activity falls as more nervous buyers find it difficult to meet
the seller's price expectations. In this quieter buy-out market the demand
for mezzanine finance has held up relatively well as less aggressive bank
lenders have often left a gap in the financial structures to be filled by
mezzanine, a trend we will continue to exploit. While a small number of
banks, who specialise in mezzanine, together with some specialist funds, have
been active in the market, there has been little sign of increased
competition overall from other banks. Indeed, even before recent tragic
events in the United States, as the financial outlook had become more
uncertain, some banks had become less confident about taking on mezzanine
underwriting risks, thus leaving increasing opportunities for specialist
mezzanine investors such as ICG.

In the current year we have seen a modest strengthening in the cash yield
obtainable on mezzanine loans following a similar move in the senior bank
debt markets. Signs were appearing of slightly less geared financial
structures, but this was not, until very recently, commonplace across the
market.


ICG's loan portfolio

Taking into account the quieter market background, ICG had a satisfactory
first half for new lending. It arranged or provided a total of £178m
financings, of which £109m was invested on ICG's own balance sheet, £25m was
invested by our fund management clients with the balance of £44m being
syndicated to third party investors. In the period ICG made nine financings
of which three were in the UK and six in France. Of particular note was a
$160m mezzanine loan to help finance the buy-out of a French company, which
is the largest mezzanine loan ICG has ever arranged.

The first half saw six loans totalling £41m being repaid. Taking into account
the new loans and these repayments, together with the provisions we have made
and the effect of currency movements, which reduced the sterling value of
both our portfolio and our borrowings by £15m, the loan book rose 8% to £667m
in the first six months of the year. The portfolio is well diversified across
72 companies, operating in a wide spread of sectors and across 12 European
countries.


Fund management

The fund management division continues to be a strong source of growth for
ICG. In the first half of the year we have continued to steadily invest the
new £290m mezzanine fund which we raised last year. The total amount of all
mezzanine funds invested on behalf of clients at 31 July 2001 had risen to
£276m.

The European high yield bond markets, in which our two CDO funds invest part
of their portfolio, have had a very difficult six months. There has been
extreme volatility in this market and some very significant price falls
particularly amongst telecom and media related bonds. While our funds have
substantially outperformed the high yield bond market, this good relative
performance is still some way below our initial expectations. These adverse
market conditions have exposed some of the structural weaknesses in CDOs, in
particular the rigidity it imposes on the investment profile of the fund,
which is not always in the best interest of investors.

An important recent event has been the successful launch of a Euro 450m loan
fund, which will invest primarily in higher yielding European bank loans.
This fund will not suffer from the same structural weaknesses as the CDO's.
We believe that this asset class has at present more attractive risk/return
characteristics than high yield bonds, with potential for considerable
further growth from a fund management perspective.


Core Income

Core Income, which comprises net interest income and fee income less
operating expenses, in the first half rose by 14% to £19.2m compared with the
previous year's first half.

Net interest income for the six months to 31 July 2001 increased by 19% to
£17.2m. The prime reason for this increase was the growth in ICG's loan book
compared with the first half of the previous year.

Total fee income increased by 16% to £7.3m compared with the first half of
the previous year. Arrangement fees amounted to £2.4m, a decrease on the
previous year which had more large deals. Fund management fee income showed a
very strong increase of 84% to £4.5m, primarily as a result of earning fees
from the second CDO fund and nearly £1m of carried interest (performance
fees) from some of our earlier mezzanine funds.

Operating expenses increased to £5.3m, primarily as a result of increased
staffing and office costs together with higher than usual aborted deal costs.



Capital gains and provisions

Capital gains for the first half amounted to £15.1m. Last year, the level of
capital gains achieved in the first six months was exceptionally high and, as
expected, the level of gains this year was much lower. This was due in part
to the economic and market background which reduced disposal activity, and
therefore the opportunities for capital gains.

In the first half we made net provisions of £7.5m. These provisions relate to
three investments, all of which have significantly under-performed in the
first half of the year. After these provisions and the £1.7m cost of the
medium term incentive scheme, net capital gains fell to £5.9m.


Dividends

The Board has declared an interim dividend of 8.6p per share, which is an
increase of 12% over the interim dividend of 7.7p per share which was paid
last year. The interim dividend is payable on 26 October 2001 to shareholders
on the register on 12 October 2001.


Funding

At 31 July 2001 ICG's borrowing amounted to £502m which represents a low
gearing level of 253%.

During the first half ICG raised a further £100m of unsecured debt through
the private placement market, with maturities of between 5 and 10 years.
Following this fundraising, ICG has total facilities of £706m, of which £204m
were unutilised at the end of July, giving it ample ability to fund its
increasing loan book.


Prospects

Recent tragic events in the United States have inevitably made the immediate
economic outlook more difficult to forecast. The consequent uncertainty is
likely to lead in the short term to a reduction in both new lending activity
and realisations in the buy-out market. It is also very likely to lead to a
more measured approach by bank lenders which should be beneficial to the
mezzanine market and ICG, as pricing should improve and structures become
more conservative. We believe that this will result in due course in a
greater number of attractive mezzanine opportunities.

We expect to continue to invest on a selective basis and to grow our loan
book in the second half. While our mezzanine portfolio cannot be expected to
escape the effects of a significant economic downturn, we take confidence
from its overall diversity and quality.

Against this background, while the short term outlook for capital gains is
relatively weak, prospects for further core income growth and for our fund
management business in the current year remain good.

The changing economic background will inevitably present new challenges for
ICG, but it also offers significant opportunities, from which we can benefit.
We therefore remain confident of our future prospects.



INTERMEDIATE CAPITAL GROUP PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 July 2001




                         Half year to 31   Half year to 31     Year to 31 Jan
                               July 2001         July 2000               2001

                                      £m                £m                 £m

  Interest and dividend income      32.9              26.5               55.8
  Gain on disposals                 15.1              51.2               56.9
  Fee and other operating income     7.3               6.3               13.3
                                 _______          ________            _______
                                    55.3              84.0              126.0

  Interest payable and
  similar charges                 (15.7)             (12.1)            (26.0)
  Provisions against
  loans and investments            (7.5)             (14.9)            (16.9)
  Administrative expenses          (7.0)             (16.8)            (25.1)
                                 _______          ________            _______

  Profit on ordinary
  activities before taxation        25.1              40.2               58.0
  Tax on profit on
  ordinary activities              (7.6)             (12.5)            (17.5)
                                 _______          ________            _______
  Profit on ordinary
  activities after taxation         17.5              27.7               40.5
  Dividends paid and
  proposed - ordinary              (5.0)             (4.5)             (14.6)
                                 _______          ________            _______

  Retained profit transferred
  to reserves                       12.5              23.2               25.9
                                 _______          ________            _______
                                 _______          ________            _______

 Earnings per share                29.9p              47.4p             69.2p
                                 _______          ________            _______
                                 _______          ________            _______


All activities represent continuing operations

Profit on ordinary activities before taxation is split as follows:-


                     Core Income                 Capital Gains

                    31 July 2001   31 July 2000   31 July 2001   31 July 2000
                     (unaudited)    (unaudited)    (unaudited)    (unaudited)
                              £m             £m             £m             £m
______________________________________________________________________________
  Income
  Interest and
  dividend income           32.9           26.5              -              -
  Gain on disposals            -              -           15.1           51.2
  Fee and Other operating
  income                     7.3            6.3              -              -
______________________________________________________________________________
                            40.2           32.8           15.1           51.2
  Less:
  Interest payable and
  similar charges         (15.7)         (12.1)              -              -
  Provisions against
  Loans and investments        -              -          (7.5)         (14.9)
  Administrative expenses  (5.3)          (3.9)          (1.7)         (12.9)
______________________________________________________________________________
                           19.2           16.8            5.9           23.4
______________________________________________________________________________






INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED BALANCE SHEET
For the six months ended 31 July 2001

                               31 July         31 July        31 January
                                  2001            2000              2001

                                    £m              £m                £m
  Fixed assets
  Tangible assets                  0.4             0.3               0.3

  Loans                          601.8           440.8             539.5

  Investments                     65.2            67.4              80.4

  Current assets
     Debtors                      23.5            20.1              19.9
     Loans and investments        13.7            43.9              46.7
     Cash at bank                  1.6             0.1               3.1
                               ________         _______            ______
                                  38.8            64.1              69.7
                               ________         _______            ______

  Total assets                   706.2           572.6             689.9
                               ________         _______            ______
                               ________         _______            ______

  Capital and reserves
     Called up share capital      11.7            11.7              11.7
     Share premium account        85.0            84.7              85.0
     Capital redemption reserve    1.4             1.4               1.4
     Profit and loss account     100.2            89.4              87.7
                               ________         _______            ______
  Equity shareholders' funds     198.3           187.2             185.8
  Provisions for
  liabilities and charges           -              0.1                 -

  Creditors: amounts falling
  due after more than one year   474.7           364.6             461.2

  Creditors: amounts falling
  due within one year             33.2            20.7              42.9
                               ________         _______            ______
  Total capital and liabilities  706.2           572.6             689.9
                               ________         _______            ______
                               ________         _______            ______




INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 July 2001


                         Half year            Half year      Year to 31
                        to 31 July                to 31        Jan 2001
                      31 July 2001            July 2000

                                £m                   £m             £m
  Operating activities
     Interest and
     dividends received       31.3                 30.4           55.4
     Gain on disposals        15.2                 51.2           57.4
     Fee and other
     operating income          4.6                  6.8           13.2
     Administrative expenses (14.5)               (15.1)         (19.0)
                             ______             ________         _______
                              36.6                 73.3          107.0
     Interest paid           (15.2)               (11.5)         (24.8)
                             ______             ________         _______


  Net cash inflow from operating
  activities                  21.4                 61.8           82.2

  Taxation paid               (4.9)                (3.6)         (14.7)

  Capital expenditure
  and financial investment

     Loans and investments
     made                   (111.3)              (154.1)        (274.2)
     Realisations of
     loans and investments    43.4                 95.2          115.2
     Loans for syndication    29.8                (23.2)         (22.8)
                             ______             ________         _______
                             (38.1)               (82.1)        (181.8)
  Debtors relating to
  investors                      -                  8.5               -
  Purchase of tangible
  fixed assets                (0.1)                (0.1)          (0.1)
                             ______             ________         _______
                             (38.2)               (73.7)        (181.9)
                             ______             ________         _______

  Equity dividends paid      (10.1)                (9.0)         (13.5)

                             ______             ________         _______
  Net cash outflow before
  financing                  (31.8)               (24.5)        (127.9)

  Financing
  Increase in share capital      -                    -            0.3

  Increase in debt            30.3                 25.2          130.6
                             ______             ________         _______

  (Decrease)/increase in
  cash and cash equivalents   (1.5)                 0.7            3.0
                             ______             ________         _______
                             ______             ________         _______



NOTES TO THE EDITORS

In the six months ended 31 July 2001 ICG made the following loans and
investments:

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

Courtpaille is a leading chain of grill restaurants in France. ICG took a
participation of Euro 10.6m in the mezzanine facility required 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 USD 25m to assist in the MBO.

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 Libco,
the market leader in Italy for pest control services.

Gerflor, an existing borrower based in France, is no. 2 in Europe in the
manufacture of PVC flooring. ICG took a participation of FF 170m in the
mezzanine facility provided to assist the buyout.

Picard is a leading French manufacturer, distributor and retailer of
frozen foods. ICG arranged and provided a facility of Euro 164m of mezzanine
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 XM, a U.K. nautical
equipment distributor.

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 Euro 11.5m to assist in the buyout.