Further re Lapse of Option

Mercury Group PLC
02 June 2005


                               Mercury Group plc
                          ('Mercury' or the 'Company')

                   Option to acquire Lee Baron Group Limited
                                 ('Lee Baron')

Further to the statement made by the Company on 1 March 2005 regarding a call
option deed dated 1 March 2005 whereby Mercury has the right exercisable at any
time prior to 31 May 2005 to require the Lee Baron shareholders to enter into an
agreed form sale and purchase agreement in respect of the entire issued share
capital of Lee Baron, the Company announces that it has decided to allow the
option to lapse.

Mercury continues to investigate further opportunities within the real estate
industry that fit within the Company's strategy.

Enquiries:
David J Williams, Chairman
020 7422 6585




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