Further re Placing

Mercury Group PLC
07 July 2005


                                 Mercury Group

                              Further re - placing

Further to the announcement of the 4 July 2005 regarding the placing of
666,666,666 new Ordinary Shares at 0.3 pence per share (the 'Placing Shares') to
Pendana Limited ('Pendana'), the Company has today been notified that KBC Peel
Hunt Ltd has entered into a contract for difference with Pendana in relation to
such shares, of which 550,000,000 have been allotted. The remaining 116,666,666
Placing Shares will be allotted, conditional on the passing of the necessary
resolutions at an Extraordinary General Meeting ('EGM') of the Company. Such EGM
will be convened by way of a circular to be issued in due course.

Accordingly the Company has today been notified that KBC Peel Hunt Ltd, as a
result of the contract for difference referred to above, is now interested in
550,000,000 Ordinary Shares in Mercury representing 22.3 per cent. of
Mercury's issued share capital. These shares are registered in the name of KBC
Peel Hunt.

Enquiries

Mercury Group PLC      David Williams, Chairman          T: 020 7422 6566
KBC Peel Hunt Ltd      Julian Blunt                      T: 020 7418 8900
Biddicks               Katie Tzouliadis                  T: 020 7448 1000




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