Offer Update

St. James's Place Capital PLC
18 May 2000

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO
CANADA, AUSTRALIA OR JAPAN.

                         RECOMMENDED PARTIAL OFFER FOR
                        -------------------------------
              ST. JAMES'S PLACE CAPITAL PLC BY HALIFAX GROUP PLC
             ----------------------------------------------------
                                OFFER EXTENDED
                                ---------------
                                       
Halifax announces that, pending regulatory approvals, the Partial Offer has
been extended, with the consent of the Panel on Takeovers and Mergers, until
1st June, 2000.  The Partial Offer closed to acceptances on 11th May, 2000.
It remains conditional, inter alia, upon regulatory approvals.  A further
announcement will be made in due course regarding satisfaction of the
remaining conditions.

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

Halifax Group Plc
-----------------

John Hope (for analyst queries)                   Tel:  [phone]
Alison Roberts (for press queries)                Tel:  [phone]

Lazard                                            Tel:  [phone]
------

Marcus Agius, Vice Chairman
Jon Hack, Director

St. James's Place Capital plc                     Tel:  [phone]
-----------------------------

Hugh Gladman, Legal and Compliance Director
Martin Moule, Finance Director

Cazenove & Co.                                    Tel:  [phone]
--------------

David Mayhew
Richard Locke


Brunswick Group Limited (for St. James's Place Capital plc enquiries only)
-----------------------

Alison Hogan, Partner                             Tel:  [phone]


Lazard Brothers & Co., Limited, which is regulated in the UK by The Securities
and Futures Authority Limited, is acting for Halifax and no one else in
connection with the Partial Offer and will not be responsible to anyone other
than Halifax for providing the protections afforded to customers of Lazard
Brothers & Co., Limited nor for providing advice in relation to the Partial
Offer.

Cazenove & Co., which is regulated by The Securities and Futures Authority
Limited is acting for SJPC and no one else in connection with the Partial
Offer and will not be responsible to anyone other than SJPC for providing the
protections afforded to customers of Cazenove & Co. nor for providing advice
in relation to the Partial Offer.

Words and expressions defined in the offer document dated 6th April, 2000,
shall, unless the context otherwise requires, have the same meanings when used
in this announcement.