23 April 2009

PGI Group Plc

Proposed cancellation of listing of the ordinary shares on the Official List

The directors of PGI Group Plc (the 'Company') announce their proposal to seek shareholders' approval for the cancellation of the listing of the Company's shares on the Official List and of their trading on the London Stock Exchange and for the re-registration of the Company as a private limited company on the delisting taking effect.

The Company's ordinary shares have been traded on the London Stock Exchange since 1984. The Company's aim has been to generate shareholder value by developing the group's businesses and this continues to be the Company's aim today. However, due to a number of factors, including the relatively small total market capitalisation of the Company, the small free float, the limited trading volumes in the Company's shares and the costs of compliance with the Listing Rules, the directors have come to the view that it is no longer in the Company's best interests to maintain its Listing.

It is the directors' intention to convene a General Meeting at which the necessary resolutions to effect the delisting and re-registration as a private company will be put to the members of the Company immediately after the Company's Annual General Meeting, which is due to be held on 23 June 2009.  

The directors of the Company have explored the possibility of the Company or the directors offering to acquire the shares of members who would not wish to continue to hold them after the cancellation of the listing but, as a result of a number of regulatory requirements, the cost of doing so would have been prohibitively high to the Company. Nonetheless, shareholders who wish to offer their shares for sale in the market prior to cancellation of the listing will continue to be able to do so.

The directors will shortly post a circular to shareholders setting out further details of the above proposals and convening the required General Meeting.

Current trading and prospects

Reference is made to the announcement made today by the Company regarding the publication of its results for the year ended 31 December 2008. Full details of the current trading position and prospects of the Company are contained in that announcement.

23 April 2009

For further information:

Andrew Godber

Andrew Potts