Acquisition, etc

Prudential PLC
25 April 2000


PRUDENTIAL'S JACKSON NATIONAL LIFE TO ACQUIRE HIGHLAND BANCORP


Prudential today announced that Jackson Federal Bank, a wholly owned
subsidiary of Prudential's US subsidiary, Jackson National Life, will acquire
Highland Bancorp, Inc. for $120 million (£75 million) in cash from its own
resources.  Following the acquisition, Highland Federal Bank will be merged
with Jackson Federal Bank and the branches of Highland Federal Bank will
become Jackson Federal Bank branches.

Jackson Federal Bank will pay $25.45 (£15.81) per share for all issued and
outstanding shares of Highland Federal Bank.  The transaction is subject to
regulatory approval by the Office of Thrift Supervision in the United States
and the approval of Highland's shareholders. It is expected that the
transaction will be completed by the end of 2000.

Prudential Group Chief Executive, Jonathan Bloomer said

'The acquisition of Highland Bancorp will further enhance our strategic
objective of expanding our product lines, distribution channels and customer
base in the US.'

Highland Bancorp is the holding company for Highland Federal Bank, which
operates seven retail branches in Southern California.  Highland had total
assets of $667 million (£414 million) at 31 March 2000 and net earnings for
the first quarter 2000 of $2.9 million (£1.8 million).  Following the
acquisition, Jackson Federal Bank will operate 14 branches in the Southern
California market and will have total assets of almost $1.1 billion (£683
million).

The combined bank will offer a full range of commercial and residential real
estate loans, as well as consumer loans. Internet Banking, including bill
payment and bill presentment services will be introduced in the fourth quarter
2000.




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                         Stuart Blackmore on 020 7548 3520
                                        
Analysts contact:        Carys Walshe on 020 7548 3823