Assistance to clients of the SJP Group invested...

St James's Place plc ("SJP"), the wealth management group, today announces that it is taking steps to assist those of
its clients who, through St. James's Place, have invested in the Enhanced Fund of AIG Life (UK)'s Premier Access Bond or
Premier Bond ("the Bonds").  Separately SJP is also announcing its intention to establish an internal reassurance entity
to enhance the capital efficiency of the group.


Assistance to clients of the SJP Group invested in AIG Life (UK) Bonds

A small number of the Group's clients have invested a proportion of their liquid assets in unit-linked funds relating to
the Bonds marketed by AIG Life (UK). In September of this year a sudden and rapid increase in concerns over the
financial strength of AIG Life (UK)'s ultimate parent, AIG, Inc., led to a large number of investors seeking to
immediately withdraw several billion pounds from these Bonds.  As a result, and in order to treat all of its clients'
fairly, AIG Life (UK) took the decision to defer redemptions for 3 months in order to manage a more orderly exit from
the Enhanced Fund.  As credit markets are still very volatile and illiquid, the value of clients' assets in the Enhanced
Fund is likely to be significantly impacted to the extent that clients seek to cash in their units in December.
Consequently, AIG Life (UK) have offered all investors in the Enhanced Fund a choice between cashing in their units in
this fund in December, or switching into a new fund that should enable some distributions of capital to clients in
2009-2011 and will fully mature in July 2012.  AIG Life (UK) is offering clients who agree to remain invested in the new
fund until July 2012 a guarantee as to the minimum value of their units on that date.  The total value of the Group's
client assets remaining in the Enhanced Fund is £69 million.

In recognition of the unprecedented nature of this situation and the unexpected consequences for its clients, St.
James's Place has put in place the following arrangements to assist them:

·  SJP will make a one-off goodwill payment to its clients calculated by reference to the current value of their units in
the Enhanced Fund.  The expected cost of this payment is £6.9 million and will be made in April 2009.

·  A liquidity facility provided by Bank of Scotland Private Banking will make loans available to those of the Group's
clients who remain in the new fund but have a  short-term liquidity need, which they are unable to meet from
distributions from the new fund or existing resources.  These loans will be secured on the clients' policies with AIG
Life (UK) but will otherwise be subject to the Bank's usual terms and conditions and lending criteria.

SJP will pay the loan commitment fees equal to 1% of the amount lent and will also provide a guarantee and indemnity in
favour of Bank of Scotland plc in relation to the clients' obligations under these loans.  SJP's total liability to the
Bank under these arrangements will be limited to a maximum of £4.8 million.  Since the loans are fully repayable by the
Group's clients and the Bank will have the benefit of security over the clients' policies, and the minimum amount to
which clients are entitled under these policies in July 2012 has been guaranteed by AIG Life (UK), the Board consider it
unlikely that the guarantee will be called upon.


David Bellamy, CEO of St. James's Place said;

"The collapse in the money markets is unprecedented and our clients are the victims of an extreme and unforeseeable set
of circumstances.

Nevertheless, we recognise the inconvenience and distress this will have caused and want to help.  Our offer of support,
which we believe is fair to all our clients, and other stakeholders, further demonstrates our determination to maintain
and enhance our long term relationship with them."

Internal reassurance entity

As a result of the significant growth in pensions business over the last couple of years, SJP proposes, subject to
regulatory approval, to establish an internal reassurance entity. Regulatory approval is currently expected before the
end of the year following which, the cash flows arising from future pension business will be reassured to this new
entity. As a result the initial strain arising from future new pension business will emerge in the new entity, giving
rise to a more efficient capital structure going forward.

The expected benefit of this internal reassurance entity will be to increase both IFRS profit after shareholder tax (by
some £7.2 million) and EEV Operating profit (by £8.5 million) in 2008 together with a positive cash flow of some £10
million in 2009. In addition there will be both small profits and positive additional cash flows arising in future
years.

Summary

The benefits of the internal reinsurance entity are expected to outweigh the costs of the AIG assistance package and so
the net effect of the changes announced today are expected to result in a marginal enhancement of operating profits,
under both IFRS and EEV, and a small improvement in cash flow.



Enquiries:  Anita Scott, Brunswicks.
Telephone:  [phone]