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Erinaceous Group PLC (ERG)

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Monday 14 January, 2008

Erinaceous Group PLC

Re Strategic Review

Erinaceous Group PLC
14 January 2008

Erinaceous Group Plc
("Erinaceous" or "the Group")

Re Strategic Review

The Board of Erinaceous has noted the growing speculation regarding the Group's
insurance division, Erinaceous Insurance Services ("EIS").

As previously announced, and as part of its ongoing strategic review, the Board
is looking at the optimal way to reduce the Group's unsustainable debt levels.
EIS is a highly profitable business and enjoys strong and leading positions in
attractive niche markets.  The newly appointed senior management team within EIS
can see significant opportunities for developing the business which is largely
insulated from the issues facing the parent.  However, following a significant
number of approaches from parties interested in acquiring EIS, the Board has
decided to review whether a sale of EIS at this time would be in the best
interests of the Group.

It should be stressed that this is a preliminary review of third-party interest
in EIS and, as such, is part of the overall strategic review process during
which all other alternatives, such as a possible debt for equity conversion, are
still being actively investigated. The Board still believes that, regardless of
any solution, it is probable that existing shareholders will see the value of
their holdings significantly diluted.

Further announcements will be made as appropriate.

14 January 2008


College Hill                                           +44 (0)20 7457 2020
Mark Garraway
Anthony Parker

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