Disposal

St. James's Place Capital PLC
01 July 2004



                                                                   1st July 2004
                                Disposal of LAHC

St. James's Place Capital plc ('SJPC'), the wealth management group, today
announces the disposal of its entire shareholding in Life Assurance Holding
Corporation Limited ('LAHC') to Swiss Re.

The shareholders of LAHC have entered into an agreement to sell 100% of the
share capital of LAHC to Swiss Re for £333.1 million before costs, payable in
cash. The transaction is subject to regulatory approval and completion is
expected in the third quarter of 2004.

SJPC will receive total proceeds of £78.2 million, of which £66.5 million will
be received on completion and the balance of £11.7 million will be held in an
interest bearing escrow account against certain indemnities. If not required,
the escrow account monies will be released over a period of three years
following completion as detailed in the sale agreement.

SJPC will report a profit on disposal of £28 million in the second half of the
year as detailed below:

                                                        £'m                £'m
                                                      -------            -------

Gross proceeds                                                            78.2

Less     Current carrying value of LAHC                31.6
         Provision for warranty claims*                16.5
         Transaction costs                              2.1              (50.2)
                                                                         -------
Profit                                                                    28.0
                                                                         =======

*A provision of £16.5 million has been established for possible claims under the
transaction warranties and indemnities for which SJPC has a maximum potential
liability of £22.4 million (inclusive of the £11.7 million held in escrow). To
the extent provisions are not required, these will be released and SJPC will
report further profit on the disposal.

SJPC has received preliminary Inland Revenue clearance that the disposal
qualifies for Capital Gains Tax exemption under Schedule 7AC TCGA 1992 and hence
the proceeds are expected to be non-taxable.

LAHC, which acquires and manages closed life funds, is treated in the accounts
of SJPC as an investment and at 31 December 2003 the carrying value of the
holding was £31.6 million and SJPC's results for 2003 included a £3.4 million
pre-tax contribution from LAHC.

After repaying outstanding debt SJPC will utilise the remainder of the net
proceeds to provide additional capital resources for the future growth of the
Group.

JP Morgan advised LAHC and its shareholders on the transaction.

Sir Mark Weinberg, Chairman, commented

'We have made it clear for some time that, although we regarded LAHC as a good
business, it did not relate in any way to our core business of wealth management
and that we were seeking to dispose of our holding. By selling the shares at a
price which gives us a good return on the money we invested, we have realised
funds which will increase the capital available for expansion of our core business.'

Enquiries:
------------

Nitya Bolam, Brunswick                      Tel: [phone]


Notes to Editors:
------------------

Life Assurance Holding Corporation
-----------------------------------
Life Assurance Holding Corporation was established in December 1994 to play a
role in the consolidation of the UK life assurance industry by acquiring,
integrating and rationalising life assurance companies and portfolios. Companies
acquired included GAN Life Holdings and Crown Financial Management.





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