Acquisition

Teather & Greenwood Holdings PLC
19 October 2001

EMBARRGOED UNTIL 07:00

                                                             19 October 2001


                       TEATHER & GREENWOOD HOLDINGS PLC

            ACQUISITION OF ESCALON INVESTMENTS LIMITED ('ESCALON')

The Company is pleased to announce that it has exchanged contracts for the
acquisition of the entire issued share capital of Escalon for an initial cash
consideration of £150,000 with deferred consideration payable as described
below. Escalon was incorporated in May 2001 with net assets of £50,000 and has
five employees, four of whom are executives. The team has been employed as the
corporate finance team of Rathbone Neilson Cobbold, a wholly owned subsidiary
of Rathbone Brothers plc.


Based in Liverpool, the team currently acts as financial/nominated adviser and
/or broker to 32 corporate clients including 18 fully listed and 11 AIM quoted
companies. Of these, 13 are Venture Capital Trusts. The full client list of
the team is expected to transfer to Teather & Greenwood Limited (the operating
subsidiary of Teather & Greenwood Holdings plc) on or soon after completion.


Additional cash consideration is payable based on a multiple of three to five
times post tax profits for each of the three years ending on 31 October 2004.
The deferred consideration is effectively limited to a maximum £2.4 million,
with additional nominal amounts of £1 per £10,000 profits payable over certain
prescribed profit targets.


Commenting on the acquisition, Ken Ford, Chief Executive of Teather &
Greenwood Holdings plc, said:


'The acquisition of an established and respected regional team is a logical
step as we seek to build on our already leading position as specialist
advisors and brokers to small and growing companies. We see significant
opportunities ahead with both the clients of the team and other developing
companies both listed and unlisted.


Commenting on the acquisition, Nick Bankes, Director of Escalon, said:


'We are pleased to be joining Teather & Greenwood with their well established
and highly respected Corporate Finance division. Their additional strengths in
smaller company equity research, institutional sales and market making will
enhance the services we can offer to our existing and new corporate clients.
We are confident of a successful and exciting future together.'


Contacts


TEATHER & GREENWOOD LIMITED:


Ken Ford: (0207 426 9000)

Nick Stagg: (0207 426 9000)


ESCALON LIMITED:


Nick Bankes: (0151 243 7467)

Mike Sawbridge: (0151 243 7468)