Strategic Alliance

Tribal Group PLC 04 November 2005 Tribal Group plc Formation of strategic alliance in primary care Tribal Group plc ('Tribal Group' or the 'Group') is pleased to announce the formation of a strategic alliance between Mercury Health, the Group's healthcare delivery arm, and Chilvers & McCrea Limited ('CML'), one of the leading independent providers of primary care services to NHS organisations and patients. The alliance has been established to take advantage of the major reforms that are taking place in healthcare in the UK and the increasing opportunities for independent sector providers to supply a range of primary care services to the NHS. The Group has formed a new company, Mercury Health Primary Care Limited ('MHPC'), that will receive strategic support from CML, and have exclusive access to the know-how and intellectual property developed by Sarah Chilvers and Rory McCrea (the owners of CML). Sarah Chilvers and Rory McCrea hold a minority interest of 35 per cent. in MHPC. MHPC is currently bidding for a number of pilot primary care schemes being commissioned by the Department of Health but is not expected to make a positive contribution to Group earnings before the year ending 31 March 2007. In a separate but related development, Mercury Health has entered into an affiliation with the Frome Medical Practice ('FMP'). FMP is one of the leading GP practices in the country with 29 doctors. FMP will provide advisory and support services to MHPC. Commenting on the announcement, Henry Pitman, Chief Executive of Tribal Group, said, 'We are delighted to announce the formation of MHPC and the alliances with CML and FMP. We believe that these developments will lay the foundations for Mercury Health to become one of the leading independent sector providers of primary care services. In addition, CML and FMP will be able to provide us with specialist expertise that should enhance our capability to be successful in the current round of diagnostics and elective surgery contracts.' Contact details: Henry Pitman, Group Chief Executive 01285 886020 Peter Martin, Mercury Health Chief Executive 0118 952 1901 Editors' note: CML was established four years ago and operates 18 general medical practices in England and provides a range of consultancy services to Primary Care Trusts and other NHS bodies. This information is provided by RNS The company news service from the London Stock Exchange

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