Update on Regulatory Capital

Berkeley Berry Birch PLC
18 January 2006


Berkeley Berry Birch plc ('BBB')

Update on Regulatory Capital

BBB announces that its subsidiaries, Berkeley Independent Advisers Limited
('BIA') and Berry Birch & Noble Financial Planning (Weston) Limited ('Weston'),
have withdrawn their references to the Financial Services and Markets Tribunal
in respect of the FSA's Decision Notices of 29 July 2005. These Decision Notices
were issued because of regulatory capital breaches by BIA and Weston. The FSA
has agreed that it will not serve Final Notices in respect of these Decision
Notices before 27 February 2006 and shall, in any event, not serve a Final
Notice in respect of the Decision Notice if BIA and Weston provide the FSA with
written opinions from its auditors that they are compliant with the prudential
Rules on capital adequacy. If BIA and Weston are unable to provide such an
opinion, the FSA would serve the Final Notices. This would have the effect of
cancelling these companies' permissions to conduct regulated financial services
business.

Berry Birch & Noble Financial Planning Limited, which ceased to conduct
regulated business on 19 December 2005, has also withdrawn its reference to the
Tribunal.

Commenting on the agreement reached with the FSA, John Joyce, Chairman of BBB,
said that:

'This agreement will enable BBB to focus fully on its refinancing plans. The BBB
Board has met and reviewed the plans, which are proceeding within the expected
timescales.'

For further information contact:

Andrew Shortis, Group Managing Director
Berkeley Berry Birch plc

024 7623 2176



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