Disposal

Montpellier Group PLC
22 October 2003



                              MONTPELLIER GROUP PLC
                        ('Montpellier' or the 'Company')

                  Disposal of Non-core Construction Businesses


Further to the announcement made on 3 October 2003, Montpellier is pleased to
announce the disposal of the entire issued share capital of three of its wholly
owned loss-making subsidiaries, Cornhill Interiors Limited, Lodge & Sons
(Builders) Limited and YJL Facilities Limited (together the 'Subsidiaries') as
well as its 30 per cent. interest in McLaren Construction Limited to Roger
Feast, former chief executive of its Construction Division. Mr Feast resigned
from the Board of Montpellier on 3 October in order to pursue the acquisition of
these businesses.

The principal activity of Cornhill Interiors is building fit-outs and
refurbishment for the commercial and residential sectors. Lodge & Sons
(Builders) specialises in the restoration of churches and listed buildings,
while YJL Facilities is a provider of facility services and management. For the
year ended 30 September 2002, the audited aggregate contribution from the
Subsidiaries was a loss of £1,125,000.

Under the terms of the disposal agreement, each of the Subsidiaries is being
sold for £1, and Montpellier is required to inject sufficient cash into the
Subsidiaries to ensure that their overall net asset value equates to £495,000.
The amount of this required cash injection is estimated to be £383,000. In
addition, Montpellier will make a £350,000 loan to the Subsidiaries for six
years, the first three of which are interest free.

The interest in McLaren Construction is to be sold at its book value of
£150,000.

The directors consider, having consulted with Rowan Dartington & Co. Limited,
the Company's nominated adviser, that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.

Paul Sellars, Managing Director, said:

'We are pleased to have agreed terms for the disposal of these loss-making
businesses. This allows us greater flexibility to focus on the development of
our core and profitable construction businesses, while assessing strategically
attractive opportunities in the marketplace.'


                                                                 22 October 2003


Enquiries:

Montpellier Group plc                                Tel: [phone]
Paul Sellars, Group Managing Director

College Hill                                         Tel: [phone]
Matthew Gregorowski


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