GBP301.5 million Return of Capital

31 January 2007

Tullett Prebon plc

FOR IMMEDIATE RELEASE

                              TULLETT PREBON PLC                               

                       £301.5 million Return of Capital                        

 

Tullett Prebon plc ("Tullett Prebon" or the "Company") today announces the
terms of a proposed £301.5 million return of capital to shareholders (the
"Return of Capital"). 

 

On 20 March 2006 the board of Collins Stewart Tullett plc, the former parent
company of Tullett Prebon, announced its intention to return at least £300
million of excess capital to its shareholders. At that time, the proposed
Return of Capital was dependent on receipt of a waiver from the consolidated
capital adequacy tests under the regulatory requirements established by the
Capital Requirements Directive. This waiver has now been granted to the Company
by the FSA. 

 

The Return of Capital represents approximately 22.3 per cent. of the Company's
market capitalisation (based on the Closing Mid-market Price of 635.5 pence per
ordinary share on 29 January 2007). The Return of Capital is conditional on the
approval of shareholders and confirmation by the Court, and has been structured
so shareholders will receive their return in the form of a capital repayment.

 

Assuming the Return of Capital had been made as at 30 June 2006, on a pro forma
basis (and including costs associated with this Return of Capital and financing
fees) (i) the unaudited consolidated net assets of Tullett Prebon would have
decreased by approximately £305 million, such that the unaudited consolidated
net assets of Tullett Prebon would have been approximately £59 million and (ii)
the unaudited net debt would have been approximately £263 million.

 

Subject to the approval of shareholders at an extraordinary general meeting of
the Company to be held on 26 February 2007 and the confirmation of the Court,
the Company will reduce the nominal value of each ordinary share from 325 pence
to 25 pence (the "Reduction of Capital"). Part of the sum arising from such
reduction in nominal value will be repaid to shareholders and the remainder
will be credited to the Company's reserves. The Return of Capital will involve
the repayment of 142 pence per issued ordinary share.  A circular providing
further details in relation to the proposed Return of Capital has been posted
to shareholders today.

 

The expected timetable for the Return of Capital is as follows:

Latest time for receipt of proxy form to be valid at the       9.00am on 24    
extraordinary general meeting                                  February 2007   
                                                                               
Extraordinary general meeting                                  9.00am on 26    
                                                               February 2007   
                                                                               
Court hearing to confirm the Reduction of Capital              14 March 2007   
                                                                               
Record date for determining entitlement to the Return of       6.00pm on 14    
Capital                                                        March 2007      
                                                                               
Effective date for the Reduction of Capital                    15 March 2007   
                                                                               
Credit CREST accounts with the Return of Capital on ordinary   20 March        
shares held in a CREST account                                 2007            
                                                                               
Despatch of cheques in respect of the Return of Capital on     20 March 2007   
ordinary shares held in certificated form                                      
                                                                               
Despatch of replacement share certificates for ordinary shares 20 March        
                                                               2007            
                                                                               

Enquiries

Tullett Prebon plc

Nigel Szembel, Head of Communications:                         [phone]