M&G and Cofunds Agreement

Prudential PLC
5 December 2001

For immediate release

5 December 2001




   M&G AND COFUNDS REACH AGREEMENT FOR COFUNDS TO IN-SOURCE ADMINISTRATION


M&G, a subsidiary of Prudential plc, announced today that it has reached
agreement with Cofunds for Cofunds to in-source its existing administration
team and to be granted a license for the intellectual property required to run
the administration business for £3.7 million. In August 2000, M&G was awarded
the administration contract for Cofunds and set up a dedicated Cofunds
Administration Team of 200 people based at M&G's offices in Chelmsford. Under
this new agreement, M&G's Cofunds Administration Team will transfer to
Cofunds, but will remain located at M&G's Chelmsford offices, with M&G
continuing to provide IT facilities support. The transfer will take place,
subject to TUPE regulations, on 12th December 2001.

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Prudential plc is a holding company, subsidiaries of which are regulated by
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