Network Group Holdings plc                           

                                (the "Company")                                

                      Reduction of Share Premium Account                       

Further to the circulars to shareholders issued on 31 October 2008 and 28
November 2008, the Board of Network Group Holdings plc announces that at a
court hearing held this morning, the court granted an order approving the
reduction of the Company's share premium account by £16,948,184.

The court order will be registered at Companies House tomorrow, at which point
the reduction will become effective.

For further information please contact:

Network Group Holdings plc                     01676 525 000                 
Christopher Ross, Chairman                                                   
www.networkgroupholdings.co.uk                                               
                                                                             
Nominated Adviser                              020 7492 4777                 
Dowgate Capital Advisers Limited                                             
Tony Rawlinson / Simon Sacerdoti