Egg Flotation Timetable, etc

Prudential PLC
10 May 2000


EGG FLOTATION TIMETABLE AND BOARD APPOINTMENTS

Flotation timetable

Prudential plc has today announced its intention to proceed with the flotation
of a minority stake in Egg plc.

The marketing of the minority stake is expected to commence at the end of May,
with pricing in early June, subject to market conditions.  Egg plc intends to
have its shares admitted to trading on the London Stock Exchange.

The flotation will comprise a retail offer to eligible customers, an employee
offer to eligible UK employees of Prudential group and Egg group and an
institutional offering to international investors. The customer offering will
be limited to existing Egg and Prudential Banking customers as at midnight on
22 February 2000 (and additional eligibility criteria will apply).  Customers
will be able to apply for a maximum £1,000 of shares. Egg customers will
receive a letter with more details in the next few days.

Full details of the flotation, including an indicative valuation range, are
expected to be available during the week of 22 May 2000.  The prospectus will
also be made available at that time.  Eligible customers will be able to view
the mini-prospectus on-line, as part of the on-line application process
available for the customer retail offer.

The offering will comprise the issue of new shares by Egg plc as well as the
sale of existing Egg plc shares held by Prudential plc.

Egg management changes

As part of a strong board, Roberto Mendoza has been appointed non-executive
Chairman of Egg plc with immediate effect.  A further non-executive director
appointment is Richard Delbridge.

On 1 January 2001, a new management structure will be introduced to Egg group
to give the Egg senior executives the opportunity to focus on developing a
growing business as well as keeping ahead in a fast moving market.  Mike
Harris will become Executive Vice Chairman of Egg plc and Chairman of the Egg
Executive Committee, with the main responsibility for creating and sustaining
the new business strategy and vision for the Egg group to maximise shareholder
value. Paul Gratton will become Chief Executive Officer and will be
responsible for delivering the business plan across the Egg group.

Commenting on the announcement Jonathan Bloomer, Group Chief Executive of
Prudential plc, said:

'I am delighted to announce the IPO, which I believe will build on Egg's
achievements to date including their first mover advantage and maximise their
growth potential.  The flotation will enhance management focus and raise the
profile of the business.  It will provide an acquisition currency  for
strategic expansion and help to recruit, incentivise and retain high calibre
staff.

I am also delighted with the appointments of Roberto Mendoza as Chairman and
Richard Delbridge to the board of Egg and the considerable expertise they both
bring with them.'

Mike Harris, Chief Executive of Egg plc, said:

'The flotation of Egg will be an important milestone in our strategy. We are
determined to do all that we can to grow the value of Egg, consolidate its UK
market position as a leading provider of banking products over the internet
and develop further its on-line intermediation services. We are pleased that
we can provide the opportunity for many of our customers and employees to
become shareholders of Egg.'

For further information please contact:

Media 
Jeremy Reynolds 
Prudential plc                020 7548 3721

Jonathan Glass
Brunswick Group               020 7404 5959

John Rafter
Goldman Sachs International   020 7774 1000

Analysts
Carys Walshe                  020 7548 3823
Prudential plc

This announcement is not for distribution in the United States, Canada or
Japan.  This announcement and the information contained herein is not an offer
of securities for sale or a solicitation of an offer to purchase securities in
the United States, Canada or Japan.  Egg securities may not be offered or sold
in the United States unless they are registered under applicable law or exempt
from registration. Egg does not intend to register any portion of the offering
in the United States or to conduct a public offering of securities in the
United States. No money, securities or other consideration is being solicited
by this announcement or the information contained herein, and, if sent in
response to this announcement or the information contained herein, will not be
accepted.

Notes for Editors:

Information on Egg

Prudential launched the Egg business in October 1998 as a division of
Prudential Banking plc, and Egg is now a leading provider of banking products,
and also provides intermediation services, over the Internet in the United
Kingdom.  It currently offers customers Egg-branded deposit accounts, credit
cards, personal loans and mortgages, general insurance, mutual funds and
online shopping.  It also provides Prudential-branded deposit accounts,
mortgages and personal loans, and offers associated insurance products, which
are all marketed and sold by the Prudential group.

Egg is organised along three business lines:(i) a retail banking business,
(ii) an intermediation business focusing on financial products and services
and (iii) a transaction portal to intermediate non-financial products and
services.  Egg seeks to attract Internet-enabled customers primarily into its
core-banking proposition.  It then encourages them to make regular visits to
its website and provides them with easy access to a range of financial and
non-financial goods and services.  Egg had over 1 million customers as at
30April, 2000. As at 31 December, 1999, Egg employed approximately 1400 full
time equivalent staff.

Based on its current business plan, Egg intends to launch the following
products and services over the next twelve months: 

A current account function as a further step in the integrated banking
business model.

Egg Invest will expand to include share dealing.

Egg Shop will enhance functionality, expand the search engine and increase the
number of retailers available.

A mortgage intermediation service will be launched to provide customers with
attractive products from prominent mortgage suppliers in the UK market.

However, Egg is continually reviewing opportunities as they arise and may
modify the current business plan in response to such opportunities or if
circumstances vary.

Egg plc is the holding company of the Egg group. Prudential Banking plc, a
wholly owned subsidiary of Egg plc, is the authorised banking subsidiary,
regulated by the FSA, that holds deposits, makes personal loans, grants
mortgages and issues the Egg Card.  Other subsidiaries within the Egg group
include Egg Financial Products Limited, which operates the shopping portal and
acts as the group's internet service provider, and Egg Investments Limited,
which operates Egg Invest and is regulated by the Personal Investment
Authority.
Management

It is intended in due course that the Egg plc board should consist of three
executive directors, three non-executive directors with no connection to
Prudential and up to three non-executive directors nominated by Prudential.

The existing executive directors of Egg are Mike Harris, 51, Chief Executive
Officer, Paul Gratton, 40, Chief Operating Officer, and Stacey Cartwright, 36,
Chief Financial Officer.

The non-executive directors nominated by Prudential will include Roberto
Mendoza, 54, as Chairman, previously with JP Morgan, and Jonathan Bloomer, 46,
Group Chief Executive of Prudential.  The independent non-executive directors
will include Richard Delbridge, 57, formerly a director and Chief Financial
Officer of NatWest Group.   Further details on the board composition will be
released in the prospectus.

The appointment of new directors is subject to approval from the FSA.

The syndicate

The syndicate for the offering comprises:

Goldman Sachs International Global  Co-ordinator, Lead Manager and Bookrunner
Cazenove & Co.                      Co-Lead Manager
Morgan Stanley Dean Witter          Co-Lead Manager
UBS Warburg                         Co-Lead Manager


Financial information on Egg

For the year ended 31 December 1999 Egg group incurred a consolidated loss of
£150m, which is analysed as follows:
                                                £'000
Net interest income                            24,203
Other operating income/(expense)               (4,551)
Total operating income                         19,652

Total administrative expenses                (150,296)
Depreciation                                  (10,195)
Bad debt provision                             (8,885)
Loss before tax                              (149,724)


Total administrative expenses of £150.3m comprise:
                                                £'000
Staff costs
     Salaries and accrued incentive payments   33,648
     Social security costs                      3,214
     Pension costs                              1,909
     Other staff costs                         12,450
Total staff costs                              51,221

Systems                                         9,318
Premises                                        7,089
Other operational costs (a)                    33,446
Total                                         101,074
Brand and marketing                            21,658
Development                                    27,564
Total administration expenses                 150,296

(a) includes outsourcing, consultancy, communication and call centre,
telephone, printing, postage, travel and other costs.

As at 31 December 1999, balance sheet assets and liabilities were as follows:

                                          £m

Mortgages                              1,620
Personal loans                           203
Egg Card                                 223
Treasury assets                        6,587
Other assets                             303

Total assets                           8,936

Deposits                               8,157
Other liabilities                        313
Shareholders' funds                      467

Total capital & liabilities            8,936

Goldman Sachs International is acting as sponsor and financial adviser to Egg
plc and Prudential plc and no one else in connection with the offering and
will not be responsible to any other person for providing the protections
afforded to customers of Goldman Sachs International or for providing advice
in relation to the offering.

No offer or invitation to acquire shares in Egg is being made by or in
connection with this announcement. Any such offer will be made solely by means
of a prospectus to be published in due course and any acquisition of shares
should be made solely on the basis of the information contained in such
prospectus. The value of shares can go down as well as up. Persons needing
advice should consult a professional adviser.