Result of Equity Issue

Arbuthnot Banking Group PLC
27 April 2006


Not for release, distribution or publication in whole or in part in or into the
United States, Canada, Japan, Australia, the Republic of Ireland or South Africa

PRESS ANNOUNCEMENT

For Immediate Release

27 April 2006


ARBUTHNOT BANKING GROUP PLC ('ARBUTHNOT BANKING GROUP', THE 'GROUP' OR THE
'COMPANY')

RESULTS OF THE PLACING AND OFFERS AND EXTRAORDINARY GENERAL MEETING

On 31 March 2006, Arbuthnot Banking Group posted a circular to its shareholders
containing details of the Placing and Offers, pursuant to which the Group has
today allotted a total of 709,725 New Ordinary Shares to raise a total of £4.3
million (£4.0 million net of expenses).


It was proposed that up to 710,000 New Ordinary Shares be issued at 600 pence
per share through the Placing and Offers, which comprised (1) a firm placing of
347,305 Placing Shares to Flowidea, a company beneficially owned by Mr Henry
Angest, the Chairman of Arbuthnot Banking Group; (2) a placing of 115,136 Vendor
Shares (subject to the Second Offer) with Cherrydene, a company also
beneficially owned by Mr Angest; (3) the First Offer of up to 247,559 Offer
Shares made by Hawkpoint on behalf of the Group to Qualifying Eligible
Shareholders; and (4) the Second Offer of up to 115,136 Vendor Shares made by
Cherrydene to Qualifying Institutional Shareholders. In addition, the First
Offer was fully underwritten by Cherrydene.


Of the 709,725 New Ordinary Shares allotted under the Placing and Offers,
Flowidea has subscribed for 347,305 Placing Shares, representing approximately
48.9 per cent. of the New Ordinary Shares issued under the Placing and Offers.
Valid applications have been received from shareholders in respect of 63,592
Offer Shares under the First Offer and in respect of 69,208 Vendor Shares under
the Second Offer, representing, in aggregate, approximately 18.7 per cent. of
the New Ordinary Shares issued under the Placing and Offers. Under the terms of
the Placing and Offers, Cherrydene has therefore subscribed for the 183,692
Offer Shares not taken up by the Qualifying Eligible Shareholders and the 45,928
Vendor Shares not taken up by the Qualifying Institutional Shareholders,
representing in aggregate approximately 32.4 per cent. of the New Ordinary
Shares issued under the Placing and Offers.


Following the issue of the New Ordinary Shares, Henry Angest, will, through
Flowidea and Cherrydene, have a total beneficial shareholding of 7,557,219
Ordinary Shares, representing approximately 50.6 per cent. of the Enlarged Share
Capital of the Group.


At the Extraordinary General Meeting of Arbuthnot Banking Group, which took
place earlier today, the Resolution put to Independent Shareholders (in respect
of the waiver of Rule 9 of the City Code) was duly passed. The New Ordinary
Shares will be admitted and begin trading on the Alternative Investment Market
at 8.00 a.m. tomorrow.


Terms defined in the Circular of Arbuthnot Banking Group dated 31 March 2006
shall, unless the context requires otherwise, have the same meaning in this
announcement.


For further information contact:

Arbuthnot Banking Group PLC                                        020 7012 2400
Stephen Lockley
Andrew Salmon

Hawkpoint Partners Limited                                         020 7665 4500
Paul Baines
Lawrence Guthrie



The Directors of Arbuthnot Banking Group accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the Directors (who have taken all reasonable care to ensure that such
is the case) the information contained in this announcement is in accordance
with the facts and does not omit anything likely to affect the import of such
information.

Hawkpoint Partners Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Arbuthnot
Banking Group in connection with the Placing and Offers and no-one else. Neither
Hawkpoint Partners Limited nor Arbuthnot Securities Limited, broker to Arbuthnot
Banking Group, will be responsible to anyone other than Arbuthnot Banking Group
for providing the protections afforded to customers of Hawkpoint Partners
Limited or Arbuthnot Securities Limited and will not be responsible for
providing advice to any such person in relation to the Placing and Offers or the
contents of this financial promotion or any other matter referred to herein.

The New Ordinary Shares have not been, nor will they be, registered under the
United States Securities Act of 1933 (as amended), or under the securities laws
of any state of the United States or under the applicable securities laws of any
other Excluded Territory. The New Ordinary Shares may not be offered or sold,
directly or indirectly, in or into the United States or any other Excluded
Territory, or to or for the benefit of any national, resident or citizen of any
other Excluded Territory. There will be no public offer of securities in the
United States or any other Excluded Territory.

This announcement does not constitute an offer of, or the solicitation of any
offer to subscribe for or buy, any of the new ordinary shares to any person in
any jurisdiction to whom or in which such offer or solicitation is unlawful. The
distribution of this announcement in certain jurisdictions may be restricted by
law and therefore persons into whose possession this announcement comes should
inform themselves about and observe any such restrictions. Any failure to comply
with these restrictions may constitute a violation of the securities laws of
such jurisdiction.



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