Three Acquisitions

Millfield Group PLC
21 November 2002

Date:                  21 November 2002
On behalf of:          Millfield Group plc ("Millfield")



Millfield Group plc
Achieving Strategic Objectives



Millfield Group plc, the independent financial advisory organisation, today
announced that it has put in place further key elements of its strategic plan
following investments in three financial services companies.  The acquisitions
extend Millfield's product and geographical range, and further enhances and
utilises the infrastructure which it has been developing and investing in since
flotation in March 2001.



Announcement of first stepped acquisitions


In June 2002, Millfield stated its plans to participate in the consolidation of
the financial services market through an innovative stepped acquisition
programme that would enable it to pay for proven value.  The Group is pleased to
announce its first two stepped acquisitions:



•         Millfield Sureline Limited

Millfield has today entered into an acquisition agreement with Sureline Asset
Management Limited ("Sureline").  The assets and business of Sureline have been
bought by a new company, Millfield Sureline Limited.  Sureline, an independent
financial advisory business with 14 IFAs, operates from Hertford and has an
audited turnover of over £1 million.



Millfield has acquired an initial 50% equity interest.  Further 25% tranches
will be acquired in June 2004 and June 2005 in exchange for Millfield shares,
the number being based on the levels of turnover achieved.



The consideration for Millfield's initial 50% equity will be satisfied by
£313,618 in loan notes, £20,000 in cash and 272,826 Millfield shares, which will
be subject to a two year lock in period.  Application will be made for admission
of these shares to trading on the Alternative Investment Market ("AIM") of the
London Stock Exchange.


•      Contemporary Life Limited (Trading as Mortgage Savings Centre)

Millfield has today entered into an acquisition agreement with this company.
Its assets and business have been bought by a new company, Millfield MSC
Limited.


Millfield has acquired 25% of this new company and has entered into a stepped
acquisition agreement to acquire the remaining 75% of shares in June 2007 in
exchange for Millfield shares, the number being based on the level of post tax
profits achieved.



Contemporary Life Limited, a specialist mortgage advisory business in Edgware,
North London, has 10 advisers who generated turnover of over £500,000 in the
year ended 31st July (unaudited).  This new subsidiary will enhance the range of
specialist mortgage advice offered within the Group.



Diversifying Routes to Market



Since flotation, Millfield has made substantial investments in developing a
robust infrastructure to support the Group's growth plans.  These have included
the creation of a state-of-the-art Administrative Centre in Hull, where all
calls, document processing and other administrative functions for the Group's 34
offices are handled.  The Group has also stated its commitment to developing
ways to enhance client contact through the implementation of information
technology solutions.  Millfield is therefore delighted to announce the
following development:



•         Simply Millfield Limited

Simply Millfield Limited has been established as a new, 90% owned, Millfield
subsidiary, following the Group's acquisition of the assets (including the
intellectual property rights) of Simply Online Limited from the Liquidators.
Tony Kirk, former Managing Director of Simply Online, who has been appointed
Business Development Director, holds the remaining 10% of the equity.



Simply Millfield will provide Term Life Assurance products for clients acquired
mainly from television advertising on cable and satellite channels and online
facilities, serviced through a dedicated call centre.   It is expected to
deliver a range of benefits:



•         Diversification of the Group's product portfolio;

•         An online capability that shortens Millfield's technology
development programme by more than one year, at a fraction of the cost;

•         A bespoke IT system that offers substantial benefits from electronic
processing, reducing the time it takes to process an underwritten policy from
six weeks to just one week for some 60% of cases involved;

•         A substantially faster sales process with automatic and immediate
underwriting, together with the ability for Millfield to communicate regularly
with clients on the progress of their policy;

•         Increased exposure for Millfield and its services and new client
acquisition through acquisition of specialist skills in targeted marketing.



Commenting on the announcement, Paul Tebbutt, Chief Executive of Millfield Group
plc, said:



"Our strategy of investing in quality financial advisers, infrastructure,
training and an experienced management team has created a leading independent
financial advisory group operating across the length and breadth of the UK in
under two years.



"The focus with our latest acquisitions will be to drive profitability by
enabling them to utilise our centralised resources such as Millfield Business
Centre in Hull, training and compliance management, standardised software and
technology platforms and streamlined links with product providers.  Millfield is
committed to delivering long-term shareholder value by maximising the full
potential of its investments.  Our stepped acquisitions model ensures that these
companies are incentivised to deliver against pre-determined targets and we are
confident these acquisitions will be earnings enhancing."




Enquiries to:



Paul Tebbutt, Chief Executive     Tel:  [phone]
Millfield Group plc


Emma Kane, Chief Executive        Tel:  [phone]
Redleaf Communications Ltd        Mob: [phone]



Notes to Editors:



  • Millfield is one of the fastest growing independent financial advisory
    companies in the UK offering truly independent advice, primarily in the
    pensions, life insurance, investment and mortgage sectors and has specialist
    divisions dealing with offshore investment, insurance and employee benefits.



  • Following the acquisition of these firms and the appointment of the
    advisers, Millfield will retain the services of approximately 450 advisers,
    operating primarily across England, Scotland and Northern Ireland.



•        In June 2002, the Group issued shares to raise £17.2m before expenses
of £1.2m to support its financial services acquisition programme and for working
capital primarily for investment in other acquisitions



•        Further information is available on the Millfield website:
www.millfield-partnership.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange