Disposal

Provident Financial PLC
30 May 2002



     Provident Financial sells Colonnade Insurance Brokers to Swinton Group

                                for £27 million

On 29 May 2002 Provident Financial plc ('PF') sold its subsidiary Colonnade
Insurance Brokers Limited ('Colonnade') to Swinton Group Limited ('Swinton') for
a total cash consideration of £27 million. This comprises consideration of £10.6
million for the share capital of Colonnade and £16.4m for the repayment of
intercompany debt owed by Colonnade to PF. The consideration is subject to an
adjustment in respect of net assets at completion.

Colonnade is a motor insurance broking business with 88 high street outlets and
a telebroking business. In the 12 months to 31 December 2001, as part of PF's
motor insurance division, it generated profit after tax of £1.0 million (2000
£1.4 million). PF believes that the business of Colonnade is better placed as
part of a large insurance broking group whereas PF intends to concentrate its
motor insurance activities on underwriting.

PF expects a profit on the disposal of Colonnade and a consequent increase in
consolidated net assets of £4.1million. In addition, goodwill of £14.8 million
that had previously been charged to reserves will be written back to the profit
and loss account resulting in a net loss on disposal of £10.7 million. This loss
will be separately disclosed, on the face of the consolidated profit and loss
account, as an exceptional item.

Other than the exceptional item referred to above, the disposal of Colonnade is
not expected to have a material impact on group earnings in 2002.

Following the disposal of Colonnade, PF's insurance activities are now solely
focused on motor insurance underwriting. This successful business specialises in
providing non-comprehensive insurance to female drivers and in the 12 months to
31 December 2001 reported profit before tax of £35.1m. It currently provides
insurance through intermediaries to over 860,000 motorists in the UK.




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David Stevenson 01274 731111

Investor Relations

Elizabeth Bottomley 01274 731111



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