Disposal

Mercury Group PLC
19 September 2006


                               MERCURY GROUP PLC


                       DISPOSAL OF NAVITAS HEMWAY LIMITED


                               19 September 2006


Further to the trading update announced on 4th September 2006, The Board of
Mercury Group plc ('the Company') is pleased to announce today a further step in
the planned turnaround of the Company with the disposal of its facilities
management subsidiary Navitas Hemway Limited ('Navitas'), to Cornshell Limited,
the buy-out vehicle wholly owned by the managing director of Navitas, Mr David
Dawson.


Following the disposal of Navitas, the Company will focus on growing and
developing SMPA, its core commercial property agency, based in London. In
addition, steps have been taken to continue the reduction of the Group's
overheads.


The consideration for the disposal is £150,000 in cash, of which £100,000 is
payable on completion and a further £50,000 of deferred consideration is payable
in instalments within one year following completion. In addition, intra-group
debt of approximately £20,000 will be repaid to the Company. The disposal
proceeds will be applied in improving working capital. The resulting loss on
disposal of approximately £2.4 million represents substantially the goodwill
arising on the acquisition of Navitas in 2004.


Navitas reported sales in the year ended 30 September 2005 of £2.4 million and a
profit before tax of £306,000. Since that date however, the trading performance
of Navitas has been well below management's expectations and it has continued to
absorb cash due to trading losses compounded by difficulties in collecting
substantial debtors. Navitas had net assets of £215,000 at 31 March 2006.


Under the AIM rules, the disposal of Navitas represents a transaction with a
related party, by virtue of the interest of David Dawson as the managing
director of Navitas. In compliance with this requirement, the directors of the
Company consider, having consulted with its nominated adviser KBC Peel Hunt,
that the terms of the transaction are fair and reasonable insofar as
shareholders are concerned.


The Board continues to explore the raising of additional capital by way of a
share placing with its principal shareholders and a further announcement on this
will be made in due course.


Contact: James Lugg 0207 393 4020



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