Interim Results

SOLITAIRE GROUP PLC
4 October 1999


                            SOLITAIRE GROUP Plc
                                     
                       INTERIM RESULTS ANNOUNCEMENT

Chairman's statement

Results and dividend
Pre-tax  profits for the six months before exceptional costs were  £507,000
(1998:  £520,000) on turnover of £1,627,000 (1998: £1,310,000).  The  small
decline  in pre-tax profits before exceptional costs reflects the  start-up
costs  incurred  in connection with Property Investment Portfolio  Services
Limited  referred to below. The exceptional costs relate  to  the  abortive
acquisition referred to below and amount to £461,000. Loss per share  after
exceptional  expenses was (2.2p) (1998: earnings 7.7p).  Adjusted  earnings
per share before exceptional costs were 7.6p.
The  board is recommending the payment of an increased interim dividend  of
2.45p  (1998: 2.4p) per share in respect of the six month period  ended  30
June  1999, which will be paid on 30 November 1999 to shareholders  on  the
register on 15 October 1999.

Review of operations
Residential property management
The  first  six months of the year have seen the successful integration  of
Pembertons  Residential  Limited  into  the  groups  residential   property
management portfolios.

At  the  end  of  June  1999, the group purchased the  property  management
portfolio  of  Hazelvine Limited, an estate agency and property  management
business  situated  in  West  London, for a  total  cash  consideration  of
£611,000.  This  portfolio  has been merged with  the  that  of  Pembertons
Residential  Limited this has increased the units managed by Pembertons  by
1,100 to approximately 2,400.

Solitaire  is  continuing  to develop its residential  property  management
business and is winning instructions from both national and regional  house
builders that will come on stream over the next few years.

Insurance services
At  the  current  time, the value of the portfolio for  insurance  purposes
amounts to some £1.13 billion. Solitaire continues to use its buying  power
to  obtain  competitive  terms when supplying  insurance  services  to  its
clients.

Property Investment Portfolio Services (PIPS)
As  reported at the AGM, PIPS commenced operations at the beginning of this
year.  As  expected,  the  sales generated from  this  new  operation  have
experienced  a  slow  take  up  among  the  Independent  Financial  Advisor
community. Costs have been kept under tight control, but with a  lead  time
of  around three months from initial enquiry to income generation  and  the
requirement to write off start-up costs this operation has made a  loss  of
£98,000 in the first six months, which was budgeted for. This side  of  the
business  is experiencing increasing interest and the board considers  that
costs should at least equal income for the remainder of the year. I am most
encouraged by progress to date.

Business Expansion Scheme (BES)
During  the  period  Solitaire assisted Ergotrade  Limited  (an  associated
company),  through the provision of a £1.5 million loan  facility,  in  the
acquisition  of Unchained Growth II, a BES company, the property  portfolio
of which is managed by Solitaire. Unchained Growth II has now been put into
liquidation, the properties successfully disposed off by Ergotrade and  the
loans  to  Solitaire repaid. Solitaire has retained the management  of  the
portfolio.

Abortive acquisition
At  the  beginning of the year the group was engaged in lengthy and complex
negotiations  to  acquire  a substantial London based  property  management
operation. Unfortunately this acquisition was not completed through factors
outside  Solitaires control and the resultant costs have been shown  as  an
exceptional expense.

Current trading and prospects
Solitaire  continues  to  operate in a highly  fragmented  market  and  the
group's  national  presence gives it a significant advantage  in  terms  of
economies  of scale and allows it to compete effectively at the  local  and
regional  level.  The group continues to be well placed  to  make  earnings
enhancing acquisitions.
With  the steady demand for our services from house builders, institutional
and  private  investors, together with the prospect  of  increasing  market
activity,  I  am  confident that your company can look forward  to  further
growth from its core activities.

George Brutton, FRICS
Chairman
1 October 1999

For further information:
Graham Shapiro
Solitaire Group Plc                  Tel: [phone]

Henry Faure Walker / Tom Allison
The Communication Group plc          Tel: [phone]

Unaudited consolidated profit                                            
and loss account
                                 Notes   Six months    Six months   Year to 31
                                        30 June 1999     30 June     Dec 1998
                                            £'000         1998         £'000
                                                          £'000
Revenue                                     1,627         1,310        2,792
Expenses                                    1,117           794        1,732
Exceptional costs                  3          461             -            -
                                           ------        ------       ------
Operating profit                               49           516        1,060
                                           ------        ------       ------
Investment income                               8            18           38
                                           ------        ------       ------
Profit on ordinary activities                                            
before interest                                57           534        1,098
                                           ------        ------       ------
Interest payable                               11            14           24
                                           ------        ------       ------
Profit on ordinary activities                                            
after taxation                                 46           520        1,074
Taxation on ordinary activities               147           168          358
                                           ------        ------       ------
(Loss)/profit on ordinary                                                
activities after taxation                    (101)          352          716
                                           ------        ------       ------
Dividends                          4          112           109          328
                                           ------        ------       ------
Retained (loss)/profit for the                                           
period                                       (213)          243          388
                                           ------        ------       ------
Dividend per share                           2.45          2.40          7.20
(Loss)/earnings per share                  (2.2)p            7.7         15.7
Adjusted earnings per share                  7.6p              -            -


Unaudited consolidated balance                                           
Sheet
                                 Notes  30 June 1999  30 June 1998    31 Dec
                                            £'000         £'000        1998
                                                                      £'000
Assets employed                                                          
Fixed Assets                                                             
Intangible assets                           1,020             -         440
Tangible assets                             5,626         5,383       5,517
                                           ------        ------       ------
                                            6,646         5,383       5,957
                                           ------        ------       ------
Current assets                                                           
Debtors                                     2,945           955         929
Cash at bank and in hand                      197           713         463
                                           ------        ------       ------
                                            3,142         1,668       1,392
Creditors: amounts falling due                                           
within one year                             3,494         1,510       1,589
                                           ------        ------       ------
Net current (liabilities)                                                
assets                             6         (352)          158        (197)
                                           ------        ------       ------
Total assets less current                                                
liabilities                                 6,294         5,541       5,760
                                           ------        ------       ------
Creditors: amounts falling due                                           
after more then one year                      845            25         100
                                           ------        ------       ------
                                            5,449         5,516       5,660
                                           ------        ------       ------
Called-up share capital                       456           456         456
Share premium                               2,486         2,486       2,486
Revaluation reserve                         1,731         1,731       1,731
Profit and loss account                       776           843         987
                                           ------        ------       ------
Equity shareholders funds                   5,449         5,516       5,660
                                           ------        ------       ------


Unaudited consolidated cash                                              
flow statement
                                 Notes   Six months    Six months   Year to 31
                                        30 June 1999  30 June 1998   Dec 1998
                                            £'000         £'000       £'000
Cash flow from operating                                                 
activities                                  (159)          391         876
Returns on investment and                                                
servicing of finance                          (2)            5          14
Taxation                                     (21)          (33)       (246)
Capital expenditure and                                                  
financial investment                        (132)         (306)       (594)
Acquisition and disposals                   (611)            -        (151)
Equity dividends paid                       (219)          (59)       (168)
                                           ------        ------       ------
Cash outflow before use of                                               
liquid resources and financing             (1,144)          (2)       (269)
Management of liquid resources             (1,500)                       
Financing                                   2,247            -           -
                                           ------        ------       ------
(Decrease)/increase in cash in                                           
the period                                   (397)          (2)       (269)
                                           ------        ------       ------
Reconciliation of net cash flow                                          
to movement in net funds                      
Decrease in cash in the period               (397)          (2)       (269)
Cash inflow from increased debt            (2,247)           -           -
Cash outflow from increase in                                            
liquid resources                            1,500            -           -
                                           ------        ------       ------
Changes in net funds resulting                                           
from cash flows                            (1,144)         (2)        (269)
Net funds at the beginning of                                            
the period                                    190           459         459
                                           ------        ------       ------
Net funds at the end of the                                              
period                                      (954)          457         190
                                           ------        ------       ------
Reconciliation of operating                                              
profit to net cash inflow from
operating activities
Operating profit                              49           516        1,060
Depreciation and amortisation                 54            5            19
Profit on sale of fixed assets                 -             -            -
Increase in debtors                         (506)         (334)        (291)
Increase in creditors                        244           204           88
                                           ------        ------       ------
Net cash flow from operating                                             
activities                                  (159)          391         876
                                           ------        ------       ------

SOLITAIRE GROUP Plc

1. Basis of preparation
The results for the six months ended 30 June 1999 have been prepared on the
basis  of  the  accounting policies set out in the  consolidated  financial
statements  at  31 December 1998.  The comparatives for the year  ended  31
December  1998 have been extracted from the audited consolidated  financial
statements for that period.

2. Annual Financial Statements
The  audited  consolidated  financial statements  for  the  year  ended  31
December  1998 have been filed with the Registrar of Companies and  include
an  unqualified audit report. The comparatives included in this  report  do
not  constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985.

3. Exceptional costs
The  costs resulting from an abortive acquisition have been written off  as
an exceptional item

4. Dividend
The  board  has  declared an interim dividend of 2.45p per ordinary  share,
payable  on 30 November 1999 to shareholders on the register on 15  October
1999.

5. Earnings per ordinary share
The calculation of earnings per share for the six months ended 30 June 1999
is  based upon a loss of (£101,000) (1998: £352,000) and the average number
of  ordinary 10p shares in issue of 4,561,831 (1998: 4,561,831). There  are
no  dilutive potential ordinary shares. The adjusted earnings per share has
been calculated after adjusting for the effects of the exceptional costs.

6. Net current liability
Both  current  assets and current liabilities include  the  loans  of  £1.5
million  relating to the Ergotrade Limited acquisition of Unchained  Growth
II.

7. Interim report
Copies of the interim report for the six months ended 30 June 1999 will be
sent to shareholders on 25 October 1999. Further copies will be available
from the Company Secretary, Solitaire Group PLC, Lynwood House, 10 Victors
Way, Barnet, Hertfordshire, EN5 5TZ and from the Company Announcements
Office, The London Stock Exchange, Old Broad Street, London, EC2N 1HP.