Energy Fund Launch

Old Mutual PLC
12 February 2001


                                OLD MUTUAL PLC

          Old Mutual sponsors launch of Euro150 million energy fund


Old Mutual plc ('Old Mutual'), the financial services group, is taking
advantage of rapid changes to the European energy market by sponsoring,
through an offshore subsidiary, the launch of a new fund, Gerrard Energy
Ventures SA, a Luxembourg company ('GEV' or 'the fund'). Old Mutual aims to
raise a minimum of Euro150 million from institutions and high net worth
individuals to invest in gas and electricity businesses throughout Europe.


GEV is chaired by John Devaney, former Chief Executive of The Energy Group and
the Board also includes Clare Spottiswoode, former Director General of Ofgas
and Peter Wilson, the ex-vice President of Nuon, one of the Netherlands
largest energy companies. Eric Anstee, Chief Executive, Financial Services, of
Old Mutual is Chairman of the Investment Managers and GEV's joint managing
directors are Ian Perkins and Jim Whelan, who are Chief Executive and Deputy
Chairman respectively of Old Mutual's GNI subsidiary.


The Board of GEV believes that the European power and gas sector provides an
under-exploited investment opportunity, which is undergoing a revolution
brought about by market liberalisation, new techology and environmental
pressures. Hundreds of new businesses are being formed, and cross border
acquisitions are running at a rate of 85% above last year's levels. The sector
is comparable in size to the European telecoms marketplace and accounts
annually for Euro300 billion, or 6% of European GDP.


For most of Europe the existing players have little experience in liberalised
markets, although in some areas (for example UK and Scandinavia)
liberalisation has been underway for a number of years. There is a huge
potential for investment in the sector in general, and in growth opportunities
in particular. These opportunities for investment are not yet being exploited
effectively.


GEV is one of the first investment vehicles designed to take advantage of
these growth opportunities. To achieve its ambition of 30% per annum growth in
value over its planned five year life, GEV has assembled an advisory team with
a combined total of 80 years of experience in the deregulated UK and
Scandinavian markets; a leading edge transaction record in deals which lead
the way in these markets; and considerable depth of knowledge and transaction
experience throughout Europe.


The fund has decided to focus first on early stage financings of high growth
businesses and a deal stream is already established (using committed funds of
Euro15million provided by Old Mutual) which is intended to be transferred into
the GEV investment vehicle after the initial closing, currently scheduled for
30 April.




GEV has the industry knowledge and the medium term perspective to capitalise
on the opportunity in what is currently an opaque and illiquid market. This is
borne out by the number of companies that have already approached GEV, even
before its inception. Moreover, as the markets in which these businesses are
operating become more transparent and liquid over time, the value of
successful investments will increase further.


Investment Strategy


The Board will build a balanced portfolio of investments across all parts of
the energy value chain. It expects to make individual investments of between
Euro1million and Euro15million in the best of the new breed of power and gas
companies currently being created throughout Europe. GEV's investments will
normally be for either a minimum of 25% of the issued capital of the target
companies or over Euro6million. GEV intends to invest in a minimum of 10
companies, any one of which is unlikely to represent more than 15% of the
funds invested.


GEV will invest primarily in early stage financing of companies and is likely
to exit via medium term trade sales and possibly IPOs. Average returns are
expected to be 30% per annum, although this will vary between investments and
the fund will seek higher returns from project opportunities at a very early
stage due to the higher risk profile. GEV's objective is to identify
opportunities that demonstrate a strong market advantage through superior
technology or niche positioning.


Commenting on the launch of GEV, Jim Whelan, joint Managing Director, states:


'We strongly believe that liberalisation of the European power and gas sector
provides a unique opportunity for us to launch this fund and to build up a
broadly-based portfolio of investments in this dynamic sector'.


                                                              12 February 2001





ENQUIRIES:

Old Mutual plc                                              Tel: [phone]
James Poole, Director of Corporate
Communications

Gerrard Energy Ventures                                     Tel: [phone]
Jim Whelan, Joint Managing Director

College Hill                                                Tel: [phone]
Gareth David                                                            Email:
                                                  [e-mail]