TRADING UPDATE

11 February, 2003

St. James's Place Capital Update on effect of Life Assurance Holding Corporation Profit figures

In view of figures just received relating to its 23% shareholding in Life Assurance Holding Corporation (LAHC), St.
James's Place Capital's (SJPC) results for the year ended 31st December 2002 will be materially below market
expectations and will show a small loss for the year on an Achieved Profits basis.  SJPC's share of LAHC's pre-tax
result is expected to show a loss of some £28 million.  The major causes of the loss are one-off factors:  the fall in
value of LAHC's holding in Aberdeen Asset Management; an increase in its provision for pensions misselling (largely
caused by stockmarket falls); and the reassessment of prior year tax computations. 

This reduces the value of LAHC in SJPC's balance sheet to around £30 million (under 7p per SJPC share).  As previously
announced, SJPC now accounts for its holding in LAHC on the Modified Statutory Solvency basis.
The interest in LAHC is held by the Group's holding company, SJPC and has no impact on SJPC's two wholly-owned life
assurance companies.       

Enquiries:

Anita Scott / Nitya Bolam, Brunswick       Tel:  [phone]