Acquisition

Braemar Group PLC
12 June 2007

                                                                    12 June 2007


       Braemar Group plc acquires The Armchair Property Investor Limited

                               Braemar Group plc
                           ('Braemar' or 'the Group')

Braemar Group plc, the provider of corporate finance, fund and property
management services, is pleased to announce that it has agreed to acquire The
Armchair Property Investor Limited ('Armchair'), for a consideration of up to
£2.19m for completion on 2 July 2007. The acquisition will provide:

•   Complementary distribution channels for both models of property investment 
    (direct-to-public and collective investment schemes), and;

•   Additional opportunities for the Group's growing property and block
    management activities

Background

Armchair is a residential property investment consultancy business, acting on
behalf of its registered clients to source and negotiate deals from residential
property developers. Armchair was established in 2005, and is managed by Frazer
Fearnhead, one of its founders. To date the business has built up a database of
over 10,000 residential property investors across the UK. In the year ended 30
June 2006, Armchair reported a net profit of £200,000 from a turnover of
£425,000. In the year to 30 June 2007, Armchair is expected to make a small
loss, reflecting the impact of increased directors' costs

Acquisition Structure

Armchair is to be acquired for an initial consideration of £190,000 payable upon
completion in Braemar shares and the assumption of £60,000 of debt in Armchair,
and the remainder of the consideration (up to £2m) will become due under
deferred consideration conditions linked directly to Armchair's profits over the
next three years. Deferred consideration will be due partly in Braemar shares
and partly by the issue to Armchair's vendor, Frazer Fearnhead, of convertible
loan notes. Frazer Fearnhead will become a Divisional Director of Braemar
managing the Group's direct-to-public business.

Strategic Rationale

Armchair, which will continue to trade under its own name, will provide Braemar
with an immediate access to a database of residential property investors, which
is intended to increase the flow of new block and property management and
financial service business, effectively dividing the Group's sales activities
into two channels; direct and intermediary. The Group will provide Armchair with
capital to expand, additional access to house-builders, and the range of
administration services that Braemar currently offers in its block and property
management to enhance its current offering to members. Armchair will also
provide additional distribution for the Group's collective schemes which will be
structured by the Group's corporate finance division.

For further information please contact:

Marc Duschenes, Chief Executive, Braemar Group plc       0161 929 4969
Alex Clarkson, Zeus Capital Limited                      0161 831 1512



Notes to Editors

Braemar Group plc creates and promotes a range of innovative and tax efficient
financial products aimed at the high net worth community including Private
Equity, Property and Collective Investment Schemes.

Braemar has two core divisions:

Property and Fund Administration

Braemar currently has five funds under management and has just launched its
fifth. Braemar receives an annual management fee plus a carried interest or
performance fee, which may be linked to an index.

Braemar is also preparing for the launch of a new residential property fund that
will be suitable for SIPP investment and is also monitoring the developments in
Real Estate Investment Trusts (REITs).

This division also comprises property management and block management.

Whilst project driven fees typically generate a high margin up front, the longer
term management activity provides Braemar with a trail of recurring fee income.

Braemar's block management activity, a newly established business, takes a
pro-active interest in the properties it manages and ensures a cost effective
programme of maintenance is in place that, wherever possible, enhances the value
of the properties.

Braemar also trades reversionary residential property, acting as agent or
principal and from time to time is involved in property development on its own
account.

Corporate Finance

This division primarily acts as arranger and promoter to the various structured
investment products being launched by the Group, and offers specialist advisory
and fund raising services for both public and private companies, through a
network of high net worth individuals and financial intermediaries. This
division, Braemar Securities Limited, is authorised and regulated by the
Financial Services Authority.






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