Update on Strategic Investments

LONDON FINANCE & INVESTMENT GROUP P.L.C.                    

                          ("the Company" or "Lonfin")                          

15th November 2006

                        Update on Strategic Investments                        

Further to the announcement made by Lonfin on 29th September 2006, after the
Company's AGM, we are pleased to report on recent developments with two of the
Company's Strategic Investments

As advised in that announcement, Lonfin accepted the tender offer made by
Marylebone Warwick Balfour Group plc ("MWB") in respect of 1,000,000 MWB
shares. As a result of the successful tender Lonfin received £2,080,000 in
respect of those 1,000,000 MWB shares and now holds 2,000,000 MWB shares.

A portion of the funds received from MWB have been used to exercise 2,800,000
warrants in Finsbury Food Group plc ("Finsbury Food") and the balance will be
re-invested in the General Portfolio. As a result of this exercise Lonfin now
holds 7,800,000 shares in Finsbury Food, representing 29.7% of Finsbury Food's
issued share capital. Lonfin holds a further 200,000 warrants in Finsbury Food
and intends to exercise them in 2007.

David Marshall, the Chairman of Lonfin and Deputy Chairman of Finsbury Food
said:

"We are happy to be able to take this opportunity to increase Lonfin's
investment in Finsbury Food and support their plans for future growth. Our
investments in both MWB and Finsbury Food have performed strongly and we
continue to seek further similar investments."

Enquiries:

Mark Hodgson
City Group P.L.C.
Company Secretaries
30 City Road
London, EC1Y 2AG
Telephone: [phone]
Fax: [phone]