Interim Results

Intermediate Capital Group PLC
26 September 2000

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2000

Intermediate Capital Group PLC ('ICG'), the leading specialised European
provider of mezzanine finance, announces its results for the six months ended
31 July 2000.


Financial highlights:

*    Net interest income up 55% to £14.4m

*    Core income up 71% to £16.8m

*    Net capital gains up 89% to £23.4m

*    Pre-tax profits up 81% to £40.2m

*    Earnings per share up 47% to 47.4p

*    Proposed interim dividend of 7.7p per share

*    Loan book increased to a record £508m


Operational highlights:

*    A record £280m of new mezzanine financings arranged in the first half

*    A new (Eur)465m mezzanine fund raised

*    A second CDO high yield fund to raise (Eur)350m announced


Commenting on the results, Murray Stuart, Chairman of ICG said:

'ICG has had an exceptionally good first half achieving strong growth in all
areas of its business with pre-tax profits increasing by 81%.

Our loan book has again grown to record levels and we have substantially
increased our funds under management.

The European mezzanine and high yield markets in which we operate continue to
show attractive growth prospects.  Following the extremely good first half
the profit outlook for the full year is excellent.'

Enquiries:

Tom Bartlam, Managing Director, Intermediate Capital Group PLC
[phone]
Gill Ackers/Simon Sporborg, Brunswick Group Limited
[phone]

Notes to the Editors

A brief explanation of Intermediate Capital Group's lending activities is
attached.


CHAIRMAN'S STATEMENT

Introduction

I have great pleasure in reporting extremely good results for ICG in the six
months to 31 July 2000 with the achievement of strong growth in all areas of
our business.  Compared with the corresponding period last year core income
increased by 71% to £16.8m and net capital gains showed a particularly high
increase of 89% to £23.4m.  This resulted in pre-tax profits increasing by
81% to £40.2m.  While such exceptionally high increases cannot be expected to
recur regularly in the future we do believe however that ICG's core
profitability has now moved to a materially higher level than it has been in
the past.

A year ago, when we raised new capital from shareholders to strengthen our
balance sheet, we said that we were seeing a greater flow of mezzanine
opportunities than ever before and looked forward to a period of strong
lending.  This has been borne out by events with our investing over £270m on
our Balance Sheet in the last 12 months, of which a record £154m has been
invested in the first half of this year.

In our current financial year we have also seen further substantial
development of our fund management business.  A new (Eur)465m mezzanine fund
has been raised to continue the growth in our mezzanine fund management
business.  Additionally, we have recently announced the raising of (Eur)350m
for our second CDO fund to invest in high yielding Euro denominated bonds and
loans.  As a consequence of these new funds the total amount of money
committed to our management will reach £1bn compared with £100m four years
ago.


The European Mezzanine Market

In the first half of this financial year we have continued to see a strong UK
and Continental European buyout market.  Continental Europe has again shown
good levels of activity, as a result of the trend for large European
companies to sell off non-core subsidiaries and for family controlled
companies to be sold because of succession problems.  We believe Continental
Europe has considerable further growth potential in the years to come.  In a
competitive buyout market the continuing use of mezzanine by financial buyers
has resulted in a good flow of mezzanine opportunities in the first half.

The principal competition to ICG in this active mezzanine market remains the
banks who have increasingly been offering senior debt and mezzanine debt
together as a one stop debt solution.  Few such banks want to retain on their
own balance sheet significant mezzanine assets and therefore are often keen
to offer these investment opportunities to ICG.  High yield bonds still tend
to be used in the very large transactions as a substitute for mezzanine.
This year has also seen some American funds being raised to invest in
European mezzanine but it is too early to see how successful they will be.
Within this competitive market place ICG has, in the first half, succeeded in
arranging more substantial mezzanine loans than any of its competitors and
maintained its market leadership.

ICG has been able to price its new lending satisfactorily with cash margins
being maintained at or slightly above former levels.  We have occasionally
turned down deals which we regarded as being too risky as a result of high
levels of leveraging.

ICG's lending business.

ICG had a very active first half of the year, arranging a record total of
£280m of financings, of which £154m was invested on ICG's own Balance Sheet,
£37m was invested by our fund management clients with the balance of £89m
being syndicated to third party investors.  Altogether ICG made 13 new
investments of which it arranged 8.  Of these 5 were in the UK, 5 in France,
2 in Germany and 1 in Denmark.  They included a number of substantial loans
arranged by ICG including one of DM200m in Germany, one of FF600m in France
and one of £40m in the UK.  Nine of these new investments were to finance
buyouts with two being to provide acquisition finance and two being
refinancings.

The first half also saw, as expected, a high level of repayments with 10
loans totalling £93m being repaid.

Taking into account both these repayments and new provisions the loan book
increased by 10% to £508m at 31 July 2000 from £460m at the beginning of the
year.


Fund Management

We have this year completed the raising of a new (Eur)465m mezzanine fund to
enable us to keep growing the amounts of mezzanine we invest on behalf of
clients.  These funds were raised from 12 investors of which 4 were from the
UK, 7 from Continental Europe and 1 from North America.  The total amount of
mezzanine funds invested on behalf of clients at 31 July 2000 amounted to
£238m.

The (Eur)400m CDO high yield fund which we raised last year is now almost
fully invested and we have recently announced the raising of a new CDO for
(Eur)350m which is expected to close shortly.  This represents strong growth
in our new business area of high yield fund management which we continue to
believe has significant growth potential.

The total fee income from our fund management activities in the half year
amounted to £2.4m (1999 - £1.4m).


Core Income

Core income showed a particularly high increase of 71% to £16.8m.

Net interest income for the six months to 31 July 2000 increased by 55% to
£14.4m.  The prime reasons for this large increase were the growth in ICG's
loan book compared with the previous year, the increase in shareholders'
funds as a result of the new equity raised from the Rights Issue last autumn
and the materially higher level of retained earnings.  In addition, interest
income benefited from the one-off receipt of previous years' interest on two
loans, which will not be repeated in the second half, and also from the
increased amount of rolled up interest received on some of our new loans.

Arrangement fee income was high as a result of the number of large mezzanine
financings we arranged in the period and amounted to £3.3m, an 84% increase
over the previous year.  Fund management fees increased significantly by 75%
to £2.4m as a result of the increased level of funds under management.
Operating expenses also increased materially by 34% to £3.9m, primarily
because of the extra costs incurred in staffing and operating our new high
yield fund management business, and also because of the increased scale of
our mezzanine business.


Capital Gains

Capital gains for the period were quite exceptional and amounted to £51.2m.
These gains arose on 13 different investments in 4 different countries,
namely France, United Kingdom, Denmark and Sweden.  The biggest contributor
to the overall gains was Continental Europe and, in particular, France, where
we saw some excellent returns from some of the investments we made there
three or four years ago.  Although it is reasonable to expect capital gains
to be higher than in the past because of the growth in our loan book in
recent years, the achievement of such a high capital gains figure in a six-
month period is unlikely to be repeated in the foreseeable future.  As a
result of the high level of capital gains the accrued medium term incentive
scheme payment has increased materially to £12.9m.  ICG has made new net
provisions at 31 July 2000 of £14.9m. This is partly because of one new
significantly underperforming loan and partly because we consider it best to
be prudent in our provisioning at this point in the economic cycle. This
results in net capital gains amounting to £23.4m compared with £12.4m the
previous year.


Dividends

The Board has declared an interim dividend of 7.7p per share which is an
increase of 13% over the interim dividend of 6.8p which was paid last year.
The interim dividend is payable on 27 October 2000, to shareholders on the
Register on 6 October 2000.

Funding

At 31 July 2000 ICG's borrowings amounted to £365m.  This represents a very
comfortable gearing level of 195% thus allowing ICG to fund substantial
further growth in its loan book by means of further borrowing.

During the period ICG successfully completed the raising of a further £88m of
debt from a medium term private placement of unsecured senior notes with US
and UK institutional investors.  At 31 July 2000 ICG had £160m of unutilised
facilities.


Prospects

The prospects for the second half of the year are good.  Net interest income
will continue to benefit from the increased level of the loan book and
shareholders' funds compared to last year.  Fee income will benefit from
increased funds under management.  The current expectation is for a modest
level of capital gains in the second half after the exceptional capital gains
made in the first half.  Given the extremely good first half, the profit
outlook for the full year is excellent.

The prospects for new lending in the second half are good and, given the
lower level of projected repayments, satisfactory loan book growth is
anticipated in the remainder of the year.

The specialist markets in which ICG operate - namely European mezzanine
finance and high yield fund management - continue to show good growth
prospects and consequently we look forward to the future with confidence.

INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 July 2000

                               Half year to   Half year to      Year to
                                    31 July        31 July   31 January
                                       2000           1999         2000
                                                                       
                                         £m             £m           £m
--------------------------      -----------   ------------   ----------
Interest and dividend                                                  
income                                 26.5           16.8         36.0
Gain on disposals                      51.2           22.8         28.9
Fee and other operating                                                
income                                  6.3            3.5          9.2
--------------------------      -----------   ------------   ----------
                                       84.0           43.1         74.1
Interest payable and                                                   
similar charges                      (12.1)          (7.6)       (15.5)
Provisions against loans             (14.9)          (6.0)        (8.1)
and investments
Administrative expenses              (16.8)          (7.3)       (15.4)
--------------------------      -----------   ------------   ----------
                                                                       
Profit on ordinary                     40.2           22.2         35.1
activities before taxation
Tax on profit                        (12.5)          (6.9)       (10.3)
--------------------------      -----------   ------------   ----------
                                                                       
Profit on ordinary                                                     
activities after taxation              27.7           15.3         24.8
Dividend proposed                     (4.5)          (3.2)       (12.2)
--------------------------      -----------   ------------   ----------
                                                                       
Retained profit                                                        
transferred to reserves                23.2           12.1         12.6
--------------------------      -----------   ------------   ----------
                                                                       
Earnings per share                    47.4p          32.3p        49.2p
Diluted earnings per share            46.8p          32.0p        48.8p
--------------------------      -----------   ------------   ----------
                                                                       
All activities represent                                               
continuing operations


Profit on ordinary activities before taxation is split as follows:

                            Core Income          Capital Gains
                               31 July   31 July    31 July    31 July
                                  2000      1999       2000       1999
                                                                      
                                    £m        £m         £m         £m
--------------------------    --------   -------  ---------  ---------
Income                                                                
Interest and dividend                                                 
income                            26.5      16.8          -          -
Gain on disposals                    -         -       51.2       22.8
Fee and other operating                                               
income                             6.3       3.5          -          -
--------------------------    --------   -------  ---------  ---------
                                  32.8      20.3       51.2       22.8
Less:                                                                 
Interest payable and                                                  
similar charges                 (12.1)     (7.6)          -          -
Provisions against loans                                              
and investments                      -         -     (14.9)      (6.0)
Administrative expenses          (3.9)     (2.9)     (12.9)      (4.4)
-------------------------     --------   -------  ---------   --------
                                  16.8       9.8       23.4       12.4
-------------------------     --------   -------  ---------   --------


INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED BALANCE SHEET
For the six months ended 31 July 2000


                                     31 July     31 July   31 January
                                        2000        1999         2000
                                                                     
                                          £m          £m           £m
---------------------------       ----------   ---------  -----------
Fixed assets                                                         
Tangible assets                          0.3         0.2          0.3
                                                                     
Loans                                  440.8       369.2        409.5
                                                                     
Investments                             67.4        36.4         50.9
                                                                     
Current assets                                                       
Debtors                                 20.1        10.7         24.1
Loans and investments                   43.9        24.5         27.3
Cash at bank                             0.1         0.1          0.1
---------------------------       ----------   ---------  -----------
                                        64.1        35.3         51.5
---------------------------       ----------   ---------  -----------
                                                                     
Total assets                           572.6       441.1        512.2
---------------------------       ----------   ---------  -----------
                                                                     
Capital and reserves                                                 
Called up share capital                 11.7         9.4         11.7
Share premium account                   84.7        32.5         84.7
Capital redemption reserve               1.4         1.4          1.4
Profit and loss and other               89.4        61.3         61.8
reserves
---------------------------       ----------   ---------  -----------
Equity shareholders' funds             187.2       104.6        159.6
Provisions for liabilities                                           
and charges                              0.1         0.1          0.1
Creditors: amounts falling                                           
due within one year                     20.7        16.0         27.6
Creditors: amounts falling due                                       
after more than one year               364.6       320.4        324.9
---------------------------       ----------   ---------  -----------
                                                                     
Total capital and liabilities          572.6       441.1        512.2
---------------------------       ----------   ---------  -----------


INTERMEDIATE CAPITAL GROUP PLC
CONSOLIDATED CASH FLOW
For the six months ended 31 July 2000

                                   Half year   Half year         Year 
                                          to          to           to
                                     31 July     31 July   31 January    
                                        2000        1999         2000      
                                          £m          £m           £m
                                         
Operating activities                                                
Interest and dividends                                              
received                                30.4        13.9        30.5
Gain on disposals                       51.2        23.7        28.9
Fee and other operating                  
income                                   6.8         3.4         9.6
Administrative expenses               (15.1)       (5.1)      (11.5)
----------------------------       ---------  ----------   ---------
                                        73.3        35.9        57.5
Interest paid                         (11.5)       (8.3)      (14.8)
----------------------------       ---------  ----------   ---------
                                                                    
Net cash inflow from                                                
operating activities                    61.8        27.6        42.7
----------------------------       ---------  ----------   ---------
                                                                    
Taxation paid                          (3.6)       (2.3)       (9.9)
                                                                    
Capital expenditure and                                             
financial investment
Loans and investments made           (154.1)      (91.1)     (196.7)
Realisations of loans and                                           
investments                             95.2        43.4        96.3
Loans for syndication                 (23.2)        16.0       (7.7)
----------------------------       ---------  ----------   ---------
                                                                    
                                      (82.1)      (31.7)     (108.1)
Debtors relating to                                                 
investments                              8.5           -      (16.2)
Purchase of tangible fixed                                          
assets                                 (0.1)       (0.1)       (0.3)
----------------------------       ---------  ----------   ---------
                                                                    
                                      (73.7)      (31.8)     (124.6)
----------------------------       ---------  ----------   ---------
                                                                    
Equity dividends paid                  (9.0)       (6.4)       (9.6)
----------------------------       ---------  ----------   ---------
                                                                    
Net cash outflow before                                             
financing                             (24.5)      (12.9)     (101.4)
                                                                    
Financing                                                           
Increase in share capital                  -           -        54.9
Increase in debt                        25.2        16.6        43.7
----------------------------       ---------  ----------   ---------
                                                                    
Increase/(decrease) in cash                                         
and cash equivalents                     0.7         3.7       (2.8)
----------------------------       ---------  ----------   ---------



NOTE TO EDITORS


ICG was founded in 1989 and was successfully floated in 1994.  Its principal
business is to arrange and provide intermediate, or mezzanine, capital for
companies in the UK and Continental Western Europe.  ICG lends from both its
own resources and from third party funds under its management.  Mezzanine
finance ranks in terms of risk and reward between bank debt and equity
capital.  In return for providing finance, ICG seeks a strong cash yield and
an additional return related to the success of the investee company, usually
in the form of a capital gain.

Mezzanine finance has been principally used to finance management buyouts but
is increasingly used as expansion and acquisition capital.

ICG also has a fast growing high yield debt fund management business.

ICG now has a market capitalisation of £530m.

In the six months ended 31 July 2000 ICG made 13 loans and investments
including:

MGE is the leading European manufacturer and supplier of Uninterrupted Power
Supplies for IT and electrical installations. ICG arranged the FF 600m
mezzanine facility required to assist in the buy-out in April 2000.

Pinewood is the leading film studio complex in Europe. ICG arranged and
provided a £10m mezzanine facility in February 2000 to assist in the buy-out
from the Rank Group.

Takko is among the leading German fashion apparel retailers in the low price
segment of the market. In March 2000 ICG arranged the mezzanine facility of
DEM 200m to assist in the buy-out from the German retailer Tengelman.

Tata Tea is a major Indian conglomerate. ICG arranged a mezzanine facility of
£40m to assist in the acquisition of Tetley, one of the worlds leading tea
companies, in March 2000.