Statement re Possible Offer

RNS Number:0843H
Davenham Group PLC
06 November 2007


Not for release, publication or distribution, in whole or in part, in or into or
from any jurisdiction (including the United States) where to do so would
constitute a violation of the laws of such jurisdiction
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PRESS ANNOUNCEMENT
EMBARGOED FOR RELEASE AT 7.00 AM

06 November 2007

DAVENHAM GROUP PLC ("DAVENHAM" OR THE "COMPANY")

The Board of Davenham notes the announcement made by ACP Capital Limited ("ACP")
on Friday, 2 November 2007 ("the ACP Announcement"). The Board believes the ACP
Announcement has the potential to lead to some misunderstanding of the Company's
business and strategy.

The Board refers to the statement made by Davenham's Chairman on 26 October 2007
in which he stated that: (i) the Company continues to perform strongly across
all divisions and the Board remains confident that the Company will make further
progress in the current financial year; and (ii) Davenham's principal bank
facilities are committed until December 2009. Davenham has maintained a rigorous
approach to credit risk assessment across all its divisions and its borrowing
arrangements give it the flexibility to implement its growth strategy.

As stated in its announcement of 25 October 2007, the Board rejected the
approach from ACP regarding a possible offer for Davenham because it concluded
that the terms proposed did not fairly reflect the value of the Company and
because ACP made its proposal conditional on a successful refinancing of ACP's
existing bridge facility, which, the Board understands, has yet to be arranged.

Given the specific nature of Davenham's business, the Board remains to be
convinced about the applicability of ACP's strategy to Davenham and has to date
not received sufficient detail from ACP to conclude on this. The Board is
prepared to hear further detail from ACP to enable it to reach a conclusion.

Davenham remains committed to its own approach of building a specialist UK SME
financing business founded on its long term strategy, which has delivered a
strong track record of growth, prospering through a variety of economic
conditions.

Davenham's nominated adviser is Hawkpoint Partners Limited (contact names:
Lawrence Guthrie / Joseph Ayala).

Hawkpoint Partners Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Davenham
and no-one else in connection with the approach by ACP and will not be
responsible to anyone other than Davenham for providing the protections afforded
to clients of Hawkpoint Partners Limited nor for providing advice in relation to
the approach by ACP.

Dealing disclosure requirements: Under the provisions of Rule 8.3 of the
Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly
or indirectly) in 1% or more of any class of "relevant securities" of ACP or
Davenham, all "dealings" in any "relevant securities" of that company (including
by means of an option in respect of, or a derivative referenced to, any such
"relevant securities") must be publicly disclosed by no later than 3.30 pm
(London time) on the London business day following the date of the relevant
transaction. This requirement will continue until the date on which the offer
becomes, or is declared, unconditional as to acceptances, lapses or is otherwise
withdrawn or on which the "offer period" otherwise ends. If two or more persons
act together pursuant to an agreement or understanding, whether formal or
informal, to acquire an "interest" in "relevant securities" of ACP or Davenham,
they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of ACP or Davenham by ACP or Davenham, or by any of their respective
"associates", must be disclosed by no later than 12.00 noon (London time) on the
London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
www.thetakeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a "dealing" under Rule 8, you should consult the Panel.



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