Proposal for Polish rate cap

Provident Financial PLC
08 July 2005


Proposal for the introduction of an interest rate ceiling in Poland

As we have previously announced, a bill seeking to introduce an interest rate
ceiling was brought before the Polish parliament in June 2004.  On 7 July 2005,
the bill completed its passage through the lower house of the Polish parliament
despite being opposed by the minority Polish government and the National Bank of
Poland.  The bill will now be subject to further review by the Polish upper
house.  It remains uncertain as to whether or not the bill will pass into law.

Together with other financial institutions we continue to strongly oppose the
bill which if passed into law would harm the interests of Polish consumers.

If the bill were to pass into law, we would need to amend our offer to comply
with the new regulations and have made preparations for this. There may be some
additional cost and a little disruption in the short term, but we remain
confident of a successful and profitable future for our Polish business.


Enquiries:

Media                         David Stevenson              01274 731111
Investor Relations            Rachel Brown                 01274 731111


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