Final Results

Personal Group Holdings PLC
28 March 2001


                         Personal Group Holdings Plc

                     Preliminary announcement of results

The Board of Directors of Personal Group Holdings Plc - providers of employee
benefits and related business - are pleased to announce the group's first
results since being admitted to the Alternative Investment Market for the year
ended 31 December 2000 as follows:

*     Gross income (gross income comprises earned premiums net of reinsurance   
      premiums, realised investment gains and losses, investment income and     
      other income representing commission from writing term assurance
      policies and fees and commission arising from other financial products and
      services) rose by 16% to £14.0m (1999: £12.1m).



*     Pre-tax profits (excluding unrealised investment gains/losses and         
      exceptional items) rose by 18% to £4.7m (1999: £4.0m).



*     Earnings per share (on the basis outlined above) rose by 19%.



*     Dividends increased by approximately 50%.  The directors are recommending 
      a final dividend of 1.65p which will be payable on 30 April 2001 to       
      shareholders on the register at the close of business on 17 April 2001.


In his statement on the results for the year-end and the company's activities,
Mr John Swarbrick, Chairman of Personal Group Holdings Plc, says:

'I am pleased to report that the Group has produced another profitable year.
During 2000 our operating profit before tax, on a like for like basis,
excluding exceptional items and unrealised investment losses or gains
increased by £710,000 to £4,723,000.

Business developed strongly with significant net new business added. During
2000 New  'All Employee' flexible benefit programmes were launched, among
others, for House of Fraser, Safeway, Mothercare, Comet, and Bibby.

The unrealised investment losses and the provision made for the unexpired
portion of the lease on our old offices have affected the 'bottom line' as
follows.

The unrealised investment losses of £587,000 almost match the corresponding
unrealised gains of £541,000 reported at the end of 1999. The Group's equity
investments of £1,173,000 represent approximately 10% of shareholders' funds
at 31 December 2000 and historically have produced a return of about 15% per
year. The massive fluctuation was mainly the result of certain 'high tech'
stocks that moved to amazing highs at the turn of the year and then fell back
by the end of 2000. The board's policy is not to invest more than 10%, based
on historical cost, of net assets in equity investments.

A provision of £340,000, shown within 'exceptional expenses' in the revenue
account has been made to cover outstanding commitments in respect of the lease
on the premises we occupied up to our move to John Ormond House which was
completed on the 11th of March of this year. This lease obligation continues
until December 2004 and although we are actively marketing the space, we feel
it is prudent to set aside approximately one third of the total property cost
to cover the anticipated void period.

Our introduction to the AIM market of the London Stock Exchange in November
2000 incurred a cost of £175,000, which we have also classified under
'exceptional expenses'.

The directors propose a final dividend of 1.65p per share, which increases the
total dividends for the year by approximately 50% to £1,503,000.  After
provision for taxation and dividends there is a surplus for the year of £
869,000, which has been added to reserves. Shareholders funds now stand at a
record total of  £11,231,000 (37p per share) and include net cash balances of
approximately £4,500,000.

2001 has started well with new all employee benefit programmes scheduled to
commence during the year for Rank Hovis McDougall, Compass Group, Securitas,
Norwest Holst and Christian Salvesen.

Our Financial Services subsidiary increased revenues by £308,000 to £428,000
and appears well placed to contribute even more in 2001. In March 2001 our
first 'Executive Options' flex benefit programme for senior executives was
launched for Terenci Limited the new mobile b2b solutions joint venture of Cap
Gemini and Vodaphone.  A number of other Executive Options programmes are in
the pipeline for this year.

A part of the Property Management business, which is not considered 'core' was
sold at a profit, in January and we hope to complete the sale of the remainder
of the business by the end of this year.

Your Company continues to take a positive and enthusiastic view of the
opportunities on offer and is well placed to grow its business in the
developing market for high quality flexible employee benefits within the
nations best employers.

John Ormond's death on 15th July 2000 saddened us all. John had been an
executive director of Personal Assurance from the incorporation and
authorisation of that Company in 1984 and an executive director of the Group
since its formation in 1997. He is greatly missed.

On your behalf I would like to extend our thanks to all our employees for
their loyal service to the Group during 2000.'




CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2000


                                                         2000           1999
                                                   £000    £000    £000    £000

Technical account -
general business

Gross premiums written                                   10,645           9,959
Reinsurance premiums                                        (2)             (2)
Net premiums written                                     10,643           9,957

Change in the gross provision for unearned                (120)              27
premiums
Earned premiums, net of reinsurance                      10,523           9,984

Claims paid
Gross amount                                    (2,342)         (2,325)
Reinsurers' share                                     -               -
Net of reinsurance                              (2,342)         (2,325)

Change in the provision for claims
Gross amount                                       (31)              13
Reinsurer's share                                     -               -
Net of reinsurance                                 (31)              13

Claims incurred, net of reinsurance                     (2,373)         (2,312)

Net operating expenses:
Financial reinsurance costs                        (50)            (50)
Other                                           (4,830)         (4,641)
                                                        (4,880)         (4,691)
Balance on the technical account for general
business                                                  3,270           2,981



CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2000


                                                       2000          1999
                                           Note    £000   £000   £000   £000
NON-TECHNICAL ACCOUNT

Balance on the general business technical                3,270         2,981
account

Investment income                                          827           702

Unrealised (losses)/gains on investments                 (587)           541

Investment expenses and charges                           (19)          (11)

Other income                                             2,666         1,452

Other charges
- normal                                         (1,971)        (1,066)
- exceptional                                     (515)             -
                                                        (2,486)        (1,066)

Charitable donations                                      (50)          (45)

Profit on ordinary activities before tax                 3,621         4,554


Tax on profit on ordinary activities         1          (1,249)        (1,404)

Profit for the financial year                            2,372         3,150

Dividends                                    2          (1,503)        (1,008)

Profits retained                                           869         2,142

Earnings - basic and diluted
Normal                                       3            7.8p         10.3p
Before exceptional items and
unrealised (losses)/gains on investments                 10.8p          9.1p



There are no recognised gains or losses for the period other than the profit
for the financial year.



PERSONAL GROUP HOLDINGS PLC

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2000


                                                         2000          1999
                                                     £000   £000   £000   £000

Assets
Intangible assets
Goodwill                                                      94           126

Investments

Other financial investments                                3,609         3,925
                                                           3,703         4,051
Debtors
Debtors arising out of direct insurance operations  1,090           911
Debtors arising out of direct reinsurance              30            35
operations
Other debtors due within one year                     282           259
                                                           1,402         1,205

Other assets
Tangible assets                                     5,991           765
Cash at bank and in hand                            4,926         7,432
Investment in own shares                              402             -
                                                          11,319         8,197

Prepayments and accrued income
Accrued interest and rent                              54           115
Deferred acquisition costs                             48            14
Other prepayments and accrued income                   34           192
                                                             136           321
Total assets                                              16,560        13,774








CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2000 (CONTINUED)


                                                            2000         1999
                                                       £000   £000  £000   £000
Liabilities

Capital and reserves
Called up share capital                               1,528        1,528
Profit and loss account                               9,703        8,834

Shareholders' funds                                         11,231       10,362

Technical provisions
Provision for unearned premiums                         319          199
Claims outstanding                                      891          869
                                                             1,210        1,068

Provision for other risks and charges                          368          193

Creditors
Arising out of reinsurance operations                    28           29
Current taxation                                        998          943
Other creditors including other taxation and social     940          589
security
Bank loan                                               417            -
Proposed dividend                                       495            -
                                                             2,878        1,561

Accruals and deferred income                                   873          590
Total liabilities                                           16,560       13,774



CONSOLIDATED CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2000


                                                            2000          1999
                                                            £000          £000

Net cash inflow from operating activities                  5,243         3,854

Taxation paid                                            (1,359)       (1,542)

Capital expenditure
Purchase of fixed assets                                   (539)         (431)
Sale of fixed assets                                         196            35
Acquisitions                                             (4,928)         (150)
Purchase of own shares                                     (402)             -
Equity dividends paid                                    (1,008)       (1,008)
Net cashflows                                            (2,797)           758

Cashflows were invested as follows:

Decrease in cash holdings                                (2,506)       (1,822)

Bank loan                                                  (417)             -
Net portfolio investment
Ordinary shares, loans, finance leases, treasury loan        126         2,580
stock
Net investment of cash flows                             (2,797)           758



Notes

1.      Taxation comprises United Kingdom corporation tax of £1,414,000 (1999:
        £1,240,000), and deferred taxation of (£165,000), (1999: £164,000).

2.      The directors have recommended a final dividend of 1.65p (1999: nil)
        per share payable on 30 April 2001 to shareholders on the register at   
        close of business on 17 April 2001.  The total dividend for the year,   
        including the interim dividends of 3.3p (1999: 3.3p) paid in equal      
        instalments on 4 May 2000 and 19 December 2000, amounts to £1,503,000   
        (1999: £1,008,000), which is equivalent to 4.95p (1999: 3.3p) per share.

3.      The basic and diluted earnings per share are based on the profit for
        the financial year of £2,372,000 (1999: £3,150,000) and on 30,521,727   
        ordinary shares (1999: 30,547,940 ordinary shares), the weighted average
        number of shares in issue during the year.


The preliminary statement which has been agreed with the auditors and approved
by the Board on 27 March 2001 is not the Company's statutory accounts.  The
statutory accounts for each of the two years to 31 December 1999 and 31
December 2000 received audit reports, which were unqualified and did not
contain statements under section 237 (2) or (3) of the Companies Act 1985.
The 1999 accounts have been filed with the Registrar of Companies but the 2000
accounts are not yet filed.


For further information, contact:

Mr C W T Johnston, Chief Executive, Personal Group Holdings Plc
Tel:  [phone]

Mr Barrie Newton, Director, Rowan Dartington and Company Limited
Tel:  [phone]