Partnership Agreement

Prudential PLC
19 July 2004

FOR IMMEDIATE RELEASE

19 July 2004

              Prudential UK and Pearl enter into ANNUITY AGREEMENT

Prudential UK and Pearl(1) have today announced an agreement, which will give
Pearl's personal pension(2) customers access to a Prudential annuity when their
plan matures. The agreement will take effect from September 2004 and will run
for five years.

On maturity of their personal pensions, Pearl customers will be offered an
annuity from Prudential, while retaining the right to select the Open Market
Option should they wish to follow this route.

Pearl's personal pension customers will benefit from the same annuity rates that
Prudential offers via Independent Financial Advisers. They will also benefit
from Prudential's financial strength and expert administration processes.

Isabel Hudson, Director of Corporate Partnerships, Prudential UK said: 'This
agreement demonstrates the strength of the Prudential brand in the market and
marks a step change in our strategy to deliver key partnerships. We continue to
develop other opportunities over the coming months.'

Notes to Editors:

1. Pearl is one of four main life companies, all closed to new business forming
HHG PLC's Life Services division which looks after 5 million policies.
Approximately 5000 of these policies per year will be maturing Pearl personal
pensions with access to a Prudential branded annuity.

2. This agreement covers all pensions written from 1 July 1988 under personal
pension schemes administered by Pearl Assurance PLC and Pearl Assurance (Unit
Linked Pensions) Ltd. It does not cover any other Pearl pension product nor any
pension product issued by NPI or London Life.

3. This agreement builds on Prudential's annuity reassurance agreement with
Zurich Financial Services.

Prudential UK Media Enquiries to:

Paul Keeble, 020 7150 2191, 07904 081250

[e-mail]

Prudential PLC Media Enquiries to:

Clare Staley, 020 7548 3719

[e-mail]

HHG Media Enquiries to:

Louise Dolan, Financial Dynamics, 020 7269 7192

Prudential Investor Relations to:

Rebecca Burrows, 020 7548 3537

Marina Lee-Steere, 020 7548 3511

HHG Investor Relations to:

[e-mail]


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