Re Contract

Chesnara plc - Re Contract

10th January 2007

Chesnara chooses Capita as a further outsourcing partner

Chesnara plc's life subsidiary Countrywide Assured has today signed a contract
with Capita Life and Pensions Regulated Services Limited to provide insurance
administration services for the 80,000 life policies acquired as a result of
the purchase of City of Westminster Assurance in 2005. The deal is initially
for 15 years and supports Chesnara's stated aim of seeking long-term
outsourcing arrangements to provide effective control of its administration
costs.

Enquiries

Graham Kettleborough 01772 840001

Chief Executive, Chesnara plc 07799 407519