Disposal

Millfield Group PLC
08 August 2005


8 August 2005

PRESS RELEASE

£9m cash proceeds for Millfield on sale of Lifetime to Norwich Union

Millfield Group plc (Millfield), the leading independent national financial
services advisory group, today announces the sale of its 25% interest
(10,562,500 ordinary shares) in Lifetime Group Limited (Lifetime) to Norwich
Union Life Investment Partnership (NU). The disposal proceeds amount to £9m of
initial cash consideration before costs, with an additional contingent deferred
consideration of up to £6m. The deferred consideration is payable over the next
four and a half years based upon the achievement of certain targets between
Millfield and Lifetime.

This will result in an exceptional pre-tax profit of at least £5.2m for
Millfield. Millfield's original investment was £3.25m excluding costs.

Lifetime was set up in June 2002 to provide a multi-asset class distribution and
administration Wrap Account platform for IFA's which includes the transmission
and settlement of orders on behalf of clients of IFAs. A "Wrap Account" is an
Internet based investment service which enables advisers and their clients to
view all their financial assets on one platform. Lifetime commenced trading on
25 April 2005 and has yet to return a profit. Trading is in line with its
business plan.

Paul Tebbutt, Chief Executive, Millfield commented, "When we floated back in
March 2001, we said that we intended to develop new ways of delivering IFA
services in a way that would offer financial advisers and their clients a
significantly improved investment and administration process, combining wide
product choice with advice".

The initial £9m cash proceeds will be used to improve the company's working
capital position and therefore it will enable the Group to focus on further
developing its core financial services advisory business, which is key to
continued success as the Group moves forward. The Group will also launch a fair
deal programme for its advisers as part of the commitment to "treating customers
fairly". Under this programme up to 50% of the contingent deferred consideration
of £6m may be paid to advisers based on certain targets being achieved. This
programme will be launched on 1 September 2005.


For further information please contact:

Paul Tebbutt at Millfield on 020 8604 2607, mobile [phone]

Arthur Milton at Millfield on 020 8604 2623, mobile [phone]

Mark Llewellyn-Slade at Llewellyn-Slade PR on 01444 242792


About Millfield

  • Further information about Millfield is available at
    www.millfield-partnership.co.uk
  • Millfield Group plc was floated on the Alternative Investment Market of
    the London Stock Exchange in March 2001
  • Millfield is the leading national independent financial advisory company
    in the UK, offering truly independent advice, primarily in the pensions,
    life insurance, investment and mortgage sectors, as well as long-term care
    provision, personal wealth management and the corporate financial planning
    arena. Millfield also has a specialist division dealing with offshore
    investment, insurance and employee benefits.






                      This information is provided by RNS
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