Hungarian Business Changes

Provident Financial PLC
17 October 2006

Provident Financial - changes to Hungarian business

At the request of the PSZAF, the Hungarian financial supervisory authority,
Provident Financial is to introduce certain new administrative procedures, IT
systems changes and changes to the self-employed status of its agents in its
Hungarian business. At this stage, our best estimate is that it may take up to a
month to implement the necessary changes to administrative procedures and IT
systems.

No existing contracts are affected and customer repayments will be collected as
normal. In the meantime, lending has been suspended temporarily with immediate
effect but will resume once the changes to administrative procedures and IT
systems have been implemented to the satisfaction of the PSZAF.

Our best estimate of the financial impact is for a small adverse impact on
profits of up to £2 million in 2006 and an impact of up to £6 million in 2007,
mainly due to the additional costs of changing the employment status of our
Hungarian agents. The ongoing impact beyond 2007 is expected to be up to £4
million per annum. Despite this impact, Provident's Hungarian business continues
to provide a valuable service to its customers and has a good profitable future.

Provident has always cooperated fully with the PSZAF and will modify its
procedures and systems as quickly as possible to meet the regulator's new
requirements.

Enquiries:

John Moulding    01274 377921


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