Joint Venture

Schroders PLC
31 May 2000



Schroders and Delta Lloyd Deutschland GmbH announce KAG Joint Venture
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Today Schroders and Delta Lloyd Deutschland, GmbH announce their intention to
enter  into  a  joint venture regarding the operation of Schroder  Investment
Management GmbH, Frankfurt/Germany, 'the KAG', which provides the  legal  and
regulatory  vehicle  for  the  management of institutional  investment  funds
(Spezialfonds)  in  Germany.  Delta Lloyd Deutschland  GmbH  will  pay  DM8.7
million  in  cash  for an initial 60% interest in the KAG. The  intention  of
Delta  Lloyd Deutschland GmbH for this joint venture is that the KAG will  be
the  centre  for  their asset management activities.  That will  include  the
management of the life companies' assets and the launch of mutual  funds  for
direct investment and the unit linked products.

The  joint  venture  enables Schroders to focus on the  core  competences  of
active management and marketing.  Its commitment to the German market will be
further  enhanced  by  the addition of resource to significantly  expand  the
existing   operation  in  advisory  and  mutual  funds  business.   Schroders
currently  manages 2 billion Mark of assets in Germany, of which 500  million
Mark are within the KAG.

'For    Delta    Lloyd   Deutschland,   holding   company   of    Berlinische
Lebensversicherung AG and Gries & Heissel Bank, it is a further step  in  the
transformation/process  from a traditional life  insurance  company  into  an
integrated  financial  group' said Sven-Michael  Slottko,  CEO  Delta  Lloyd
Deutschland.

'We  are  delighted by this joint venture which underlines our commitment  to
Germany.   It  allows us to focus on our key priorities of active  management
and  marketing,  and is a further step in our strategy of  building  a  major
asset  management  business across Continental Europe' said David  Salisbury,
Chief Executive of Schroders plc.

Contacts:

Delta Lloyd Deutschland
Gerd Matthiensen, Member of Executive Board       [phone]

Schroders
David Salisbury, Chief Executive                  [phone]
Massimo Tosato, Managing Director, Europe         [phone]
Julian Samways, Institutional Marketing Director  [phone]