Securities Issue

Prudential PLC
09 August 2004

FOR IMMEDIATE RELEASE

Monday 9 August 2004

           Prudential plc - Issue of US$250m subordinated securities

On 6 August 2004, Prudential plc issued US$250 million perpetual subordinated
securities exchangeable into preference shares. They bear interest at 6.75%
p.a., payable quarterly in arrears, and rank equal to preference shares.

The securities can be redeemed at Prudential plc's option on any interest
payment date from 23 September 2009. Payments under the securities would be
mandatorily or optionally deferred if Prudential plc fails to meet certain
conditions relating to solvency which are set out in the terms and conditions of
the securities.

Interest may be paid through an alternative coupon settlement mechanism at any
time. Deferred interest is only payable at redemption or exchange, through an
alternative coupon settlement mechanism, or upon a winding-up. Prudential plc
has the option to exchange the securities into fixed-rate 6.75% preference
shares on any interest payment date from 23 March 2010. Dividend payments on the
preference shares are fully discretionary.

The securities were sold in the US market and are listed on the New York Stock
Exchange. They are rated A by Standard & Poor's and Baa1 by Moody's. The
proceeds will be used to refinance existing debt and for general corporate
purposes.

                                    - ENDS -

Enquiries to:
Media                                     Investors/Analysts
Clare Staley         020 7548 3719        Marina Lee-Steere   020 7548 3511


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