Preliminary announcement of group results

The Law Debenture Corporation p.l.c.                      

                 Fifth Floor, 100 Wood Street, London EC2V 7EX                 

       Telephone: [phone] Telex: 888347/8956803 Fax [phone]        

                   PRELIMINARY ANNOUNCEMENT OF GROUP RESULTS                   

                      FOR THE YEAR ENDED 31 DECEMBER 2002                      

  (Please note that values have been restated where necessary to reflect the   
                          share split in August 2002)                          

The directors recommend a final dividend of 4.24p on the ordinary shares for
the year ended 31 December 2002; this, together with the interim dividend of
2.66p paid in September 2002, makes an unchanged total of 6.90p (2001: 6.90p)
for the year.

Consolidated Statement of Total Return (incorporating the revenue account)

                                    2002                        2001 (as          
                                                                restated)         
                                                                                  
                          Revenue   Capital  Total    Revenue   Capital   Total   
                                                                                  
                          £000      £000     £000     £000      £000      £000    
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Total capital losses from -         (60,467) (60,467) -         (34,684)  (34,684)
investments                                                                       
                                                                                  
Income from investments   9,287     -        9,287    9,226     -         9,226   
and deposits                                                                      
                                                                                  
Trustee and other fee     13,257    -        13,257   11,663    -         11,663  
income                                                                            
                                                                                  
Underwriting commission   217       -        217      53        -         53      
and other income                                                                  
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Gross revenue and capital 22,761    (60,467) (37,706) 20,942    (34,684)  (13,742)
losses                                                                            
                                                                                  
Administrative expenses   (11,822)  -        (11,822) (9,636)   -         (9,636) 
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Return, including profit  10,939    (60,467) (49,528) 11,306    (34,684)  (23,378)
on ordinary activities                                                            
before interest payable                                                           
and taxation                                                                      
                                                                                  
Interest payable          (2,451)   -        (2,451)  (2,479)   -         (2,479) 
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Return, including profit  8,488     (60,467) (51,979) 8,827     (34,684)  (25,857)
on ordinary activities                                                            
before taxation                                                                   
                                                                                  
Taxation                  (1,086)   -        (1,086)  (639)     -         (639)   
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Return, including profit  7,402     (60,467) (53,065) 8,188     (34,684)  (26,496)
attributable to                                                                   
shareholders                                                                      
                                                                                  
Dividends                 (8,073)   -        (8,073)  (8,057)   -         (8,057) 
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Transfer (from)/to        (671)     (60,467) (61,138) 131       (34,684)  (34,553)
reserves                                                                          
                                                                                  
                          ______    ______   ______   ______    ______    ______  
                                                                                  
Return per share (pence)  6.33      (51.72)  (45.39)  7.02*     (29.72)*  (22.70)*
.........................                                                         
                                                                                  
Diluted return per share  6.26      **       **       6.88*     **        **      
(pence)                                                                           

Notes

The revenue columns of this statement represent the profit and loss accounts of
the Group

* Values restated following share split in August 2002

** No dilutive effect

Net asset value

Based on the group balance sheet as at 31 December 2002 and valuing listed
investments at middle market prices and unlisted investments at directors'
valuations, the net asset value of each share was 170.5p (2001: 222.9p), a
decrease of 23.5%. Over the same period, our benchmark, the FTSE Allshare
Index, declined by 25.0%.

Dividends

                                              2002          2001      
                                                                      
                                              £000          £000      
                                                                      
Interim of 2.66p (2001: 2.66p)             3,111            3,105     
                                                                      
Proposed final of 4.24p (2001: 4.24p)      4,962            4,952     
                                                                      
Total 6.90p (2001: 6.90p)                  8,073            8,057     

Geographical distribution of the portfolio

                                            2002             2001   
                                                                    
                                              %                %    
                                                                    
UK                                        71.8             68.5     
                                                                    
N. America                                6.4              10.0     
                                                                    
Europe                                    14.6             14.6     
                                                                    
Pacific                                   7.2              6.9      
                                                                    
                                          100.0            100.0    

Prospects

We remain committed to maintaining a quality portfolio that will add value in
the long term.

The trustee services business continues to diversify into related areas,
building on its expertise, so as to give a broader base to its earnings. We
believe that Law Debenture's experience and independence are valued in its
chosen markets.

Subject to the recommended final dividend of 6.90p per share being approved at
the Annual General Meeting to be held at the Brewers' Hall, Aldermanbury
Square, London EC2V 7HR on Tuesday 15 April 2003, dividend warrants will be
posted on 21 April 2003 to holders on the register on the record date of 14
March 2003.

By order of the board 25 February 2003

Law Debenture Corporate Services Limited

Secretary

Copies of this announcement are available from the Corporation's Registered
Office at Fifth Floor, 100 Wood Street, London EC2V 7EX

Prelimann2002

21.02.03