Issue of Equity

RNS Number:6855U
Merchant House Group PLC
27 January 2004


Merchant House Group PLC
27 January 2004
FOR immediate release 27 January 2004

                                 MERCHANT HOUSE
                                   GROUP PLC


Placing of new Ordinary shares ("Placing")

The Company has today completed a placing of 6,500,000 new Ordinary shares at a
price of 10p per share (the "New Shares"). The New Shares rank pari passu with
existing ordinary shares in all respects.

Background to and reasons for the Placing.

Following the approval, in September 2003, by shareholders of a change of
business strategy to provide corporate and other financial services, the Company
has been exploring a number of initiatives for its implementation. The purpose
of the Placing is to provide additional resources and flexibility for exploiting
opportunities to take forward the business strategy, whether by acquisition or
otherwise. The net proceeds of the Placing will be used to facilitate expansion
rather than current operational needs.

Substantial shareholdings

Pursuant to the Placing, the Company has been notified of the following
substantial holdings in the enlarged share capital:

David Clive Newton esq                  500,000 ordinary shares (3.76%)
Robert Newman esq                       500,000 ordinary shares (3.76%)
Hoodless Brennan & Partners plc         500,000 ordinary shares (3.76%)


Application has been made for the New Shares to be admitted to trading on AIM
and dealings are expected to commence on Friday 30 January 2004.

27 January 2004

Contacts:

Merchant House                             020 7332 2200
Peter Redmond, Director
Peter Cotgrove, Chairman

Shore Capital                              020 7408 4090
Alex Borrelli

FirstCityFinancial Public Relations        020 7436 7486
Allan Piper



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