Legal Proceedings

Walker,Crips,Weddle,Beck PLC
25 July 2005


                        Walker, Crips, Weddle, Beck PLC

                               Legal Proceedings

Walker, Crips, Weddle, Beck Plc ('WCWB') advises that its subsidiary, Walker
Crips Stockbrokers Limited, will be commencing legal proceedings against two
clients for settlement of certain unauthorised and partially collateralised
securities transactions. The Company is, with its lawyers, also investigating
the nature of the transactions themselves.

However, until the results of litigation are known, the Board feels it prudent
to implement a provision of £2.5 million to guard against failure to recover the
debt in full. The extent to which any losses arising may be covered by insurance
is also being reviewed.

In spite of this exceptional provision, the Board is of the opinion that the
Group's financial resources remain in a satisfactory position. Furthermore,
leaving aside the above provision, the general activities of the stockbroking
division are, as anticipated, well ahead of the previous year - the Asset
Management and Pension Divisions are making predicted good progress.

The Board recognises fully its obligation to keep shareholders and the
regulatory authorities informed of further significant developments.


25 July 2005



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