EGM Statement

Mercury Group PLC
11 January 2007


                                                                 11 January 2007

                               Mercury Group plc
                          ('Mercury' or the 'Company')

                                 EGM Statement

At the Extraordinary General Meeting of Mercury to be held at 10.00 a.m. this
morning the Chairman of the Company will make the following statement:

'In the circular sent to shareholders on 15 December 2006, the Senior
Independent Director stated that the board anticipated that the results for the
year ended 30 September 2006 would show material losses and that the Group was
performing below expectations. I can report that trading of the Mercury Group
for the first quarter of the current financial year was marginally ahead of
management expectations due to a substantial one-off project being invoiced in
late December.

The Directors of Mercury, in conjunction with their advisers, considered
carefully the requirement for further equity capital before determining the
amount to be sought from shareholders under the current placing and open offer.
The directors consider that, in order to create shareholder value, further
investment in the group's core business, Smith Melzack Pepper Angliss Limited
('SMPA'), is necessary to enable it to grow to a critical mass. The funds being
raised from the placing and open offer will be used for the following purposes:

-      to pay overdue creditors of the Group;

-      to recruit additional personnel to increase income and
       improve management succession;

-      to invest and develop the SMPA infrastructure and brand
       name;

-      to provide an adequate headroom to satisfy AIM Rules; and

-      to pay the costs of the fund raising.

I would like to reemphasise a statement made in the circular to shareholders,
the essence of which is that should the proposals not be approved by
shareholders, trading in the Company's shares will be suspended on AIM and the
Directors would have to seek financial advice from an insolvency practitioner
regarding their obligations.'

For enquiries:  
                                                 
Mercury Group plc                                                020 7393 4001
Walter Goldsmith (non-executive chairman)

                        
John East & Partners Limited                                    
John East/David Worlidge                                         020 7628 2200

College Hill Associates                                          020 7457 2020
Matthew Smallwood




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