Outsourcing Project

Schroders PLC
01 July 2005


Schroders plc

1 July 2005

Announcement of Changes in UK Custody and Portfolio Accounting Outsourcing
Project

Schroders plc today announces that it has agreed with JPMorgan Chase & Co.
(JPMorgan) to discontinue their project to outsource Schroders' UK custody and
portfolio accounting services on to a new JPMorgan platform. Together, Schroders
and JPMorgan have concluded that their operating models are no longer
sufficiently aligned to justify the continuation of the project.

JPMorgan has provided UK custody and portfolio accounting services to Schroders
on Schroders' platforms since 2000. The operation of these platforms will now be
transferred back to Schroders. It is anticipated that staff currently operating
the platforms will transfer to Schroders. This is expected to be completed by
the end of the third quarter of 2005. Schroders' clients will not be affected by
these changes.

The discontinuation of this project does not affect any other aspects of the
long standing relationship Schroders has with JPMorgan. JPMorgan will continue
in its existing relationship to support Schroders for other custody, accounting
and ancillary services.

As a result of these arrangements Schroders' asset management costs are expected
to increase from the fourth quarter of 2005 by approximately £2.5 million per
quarter. Against this, Schroders is receiving a one-off payment of approximately
£20 million from JPMorgan which will be reflected in the Income Statement in the
first half of 2005. Management expects this increase in costs to be absorbed
over the next two years within the Group's continuing programme for controlling
operational and non-compensation costs as the business grows.







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