Related Party Transaction

Jarvis Securities plc

("Jarvis" or "the Company")

Related Party Transaction



Jarvis Securities plc currently occupies premises which it rents from
Sion Holdings Limited ("Sion"). The family of Andrew Grant,  chairman
and chief executive of Jarvis, controls Sion and, in addition, Mathew
Edmett, finance director of Jarvis, is a director of Sion.  Sion is a
property and investment company  and holds 7,158,000 ordinary  shares
in the Company, being 65.67 per cent. of the issued share capital.

In order to  accommodate its growth,  Jarvis needs additional  office
space and has entered into a lease with Sion  for 3,800 sq ft of self
contained offices at 78 Mount Ephraim, Tunbridge Wells, close to  its
existing offices. The lease is  for a 10 year  term , with an  upward
only rent review after five years.   The initial rent is £63,500  per
annum, which has  been confirmed  to the directors  as representing
market rate.

Jarvis is unable  to reclaim  all its input  VAT and,  because it  is
treated as a  group for  tax purposes  with Sion,   Sion  in turn  is
unable to recover all of its  VAT inputs incurred in connection  with
the purchase  of the  property.   Accordingly, Jarvis  has agreed  to
recompense Sion for  the irrecoverable VAT which will be  capitalised
by Jarvis and written off  by Jarvis over the term of the lease.  The
rent payable by  Jarvis to  Sion will not  be subject  to VAT  (which
Jarvis would have been unable to wholly recover).

Sion will  release Jarvis  early from  its lease  obligations at  its
current premises without any compensation for the early release.

The transaction is  classified as a  related party transaction  under
Rule 13  of  the AIM  Rules  for Companies.  John  Mackay, who  is  a
non-executive  director  of  Jarvis  and  is  independent  of   Sion,
considers, having  consulted with  the Company's  nominated  adviser,
that the terms of the transaction are fair and reasonable insofar  as
its shareholders are concerned.


For further Information:

Jarvis                                                     Securities
plc                                                    Tel: [phone]
1111
Andrew Grant



Daniel Stewart & Company plc                                 Tel: 020
7776 6550

(Nominated Adviser)

Stewart Dick

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