Sale of Holding

Mercury Grosvenor Trust PLC
17 January 2002

HgCapital announced yesterday that it has signed a definitive agreement to
sell PII Group Limited on behalf of its discretionary investment clients,
including Mercury Grosvenor Trust plc ('MGT') to GE Power Systems. Completion
of the sale, which is not expected for approximately eight weeks is
conditional on approval of the transfer of control by the competition
authorities of various jurisdictions.

As PII is MGT's largest holding, the sale will, when completed, result in a
significant uplift in the value of MGT's investment compared to 30 June 2001.

The annual audit, encompassing the valuation of the entire portfolio is
currently underway. It is likely that this valuation will, as always, produce
a number of changes, both positive and negative, in the values of underlying
investments. The preliminary announcement of the results for the year to 31
December 2001, is expected to be made on 26 February 2002.



17 January 2002