Disposal

Legal & General Group PLC
22 June 2001


                         Sale of Fairmount Group Plc

Legal & General Group Plc announces that it has sold its wholly owned
subsidiary Fairmount Group Plc ('Fairmount') to Brown Shipley & Co Ltd for a
consideration of £35 million (based on a net asset value of
£6 million). Legal & General acquired Fairmount in 1987 (when net assets stood
at £3 million) for a total consideration of £22 million. The sale will give
rise to an exceptional profit in Legal & General's 2001 results of around £9
million. Completion of the sale is subject to clearance from both the
Luxembourg and United Kingdom regulatory authorities and is expected to occur
in July 2001.

David Prosser, Group Chief Executive of Legal & General Group commented;
'Fairmount is a strong and well-managed business, which has operated
successfully within the Legal & General Group. However, Fairmount is not core
to our business and we agree with its management that its next phase of growth
would be best achieved under new ownership.

Our decision to dispose of Fairmount reflects our commitment to delivering
shareholder value and to continuing to focus on providing good value products
to our broadening customer base.'

Patrick Moorsom, Managing Director of private bankers Brown Shipley,
commented; 'The acquisition of Fairmount - with its particular expertise in
the pension field - enables us to broaden the range of advisory services that
we can offer to our private clients.'

Contacts:

Investors

Legal & General

Neville Walton, Director of Corporate Communications     020 7528 6250

e-mail: [e-mail]

Peter Horsman, Investor Relations Manager                020 7528 6362

e-mail: [e-mail]



Media

Legal & General

John Morgan, Head of Public Relations                    01737 375353

e-mail: [e-mail]

Anthony Carlisle, Citigate Dewe Rogerson                 020 7638 9571

Brown Shipley

Jill Hulme or Mark Perry, Baxter Hulme PR          01625 617611

Fairmount Group

Stehen Blaney, Chairman, Fairmount Group          01372 370000




Notes to Editors:

 1. Fairmount Group Plc consists of a number of companies operating in the
    financial services sector providing life and pensions, investment
    management, stockbroking and banking administration services. In the year
    to 31/12/2000, Fairmount Group Plc made £2.2 million profit before tax on
    turnover of £12.7 million.
 2. Brown Shipley is a trading name of Brown, Shipley & Co. Limited, a member
    of the London Stock Exchange and regulated by SFA. Brown Shipley provides
    bespoke banking, investment and advisory services for private,
    institutional and corporate clients and is a subsidiary of Kredietbank
    Luxembourg, an international private and investment bank within the
    Almanij-Kredietbank Group.