Offer Update

RNS Number:5669P
Conister Trust PLC
01 August 2005


                               Conister Trust Plc

               Update regarding potential interest in the Company


On 8 July 2005, the Board of Conister Trust, the Isle of Man licensed bank,
announced that the Company had received approaches from a number of parties
regarding a range of options including interest in making a significant
investment in the Company, the acquisition of a majority stake in the Company
and a potential offer for the whole Company These discussions continue and are
now focused on parties looking to make a significant investment in the company
or acquire a majority stake in the company. Discussions are also in progress
with regard to the Company making one or more corporate acquisitions which could
result in new shareholders coming onto the shareholder register - such
acquisitions being of companies which could broaden the Company's sphere of
activities within the financial services arena and present new areas where
profitable growth can be generated.

The Directors continue to believe that the interest in the Company reflects the
Company's recent improved results and the inherent value of its banking business
in a well regulated low tax jurisdiction. The directors believe that without the
Company pursuing new areas of business, the outlook for the Company in its
current form, whilst stable, is unexciting in the short term. Accordingly,
whilst the Company is focusing on generating organic growth from its UK motor
finance business it is also actively pursing external opportunities for growth.

The approaches that have been received to date all bring additional strategic
opportunities for the Company. The company has been considering each approach
with its advisers with a view to ensuring the Company and its shareholders enjoy
future growth in value.

Since 8 July, discussions have been continuing between the Company and the
interested parties and also discussions have been held between the interested
parties and the Financial Supervision Commission ("Commission"), the Company's
banking regulator in the Isle of Man.

It is expected that, in due course, certain of the interested parties will
present detailed proposals to the Company's Board and to the Commission. In the
meantime, as Conister Trust is a bank licensed by the Commission , any person
proposing to acquire a stake of 15% or more (deemed to be a "controller" as
defined) in the Company will need to satisfy the Commission of its fitness and
propriety so to act. The Commission's policy states that it would normally
expect applicants for a banking licence to be part of a banking group. The
Commission has informed the Company that this would especially apply to any
parties proposing to acquire a holding of 30% or more. At present it is not
certain that any of the interested parties immediately fulfil this general
policy.

Further meetings are scheduled to take place between the Company, the interested
parties and the Commission on these matters.

One party, which expressed a conditional interest in making a cash offer for the
Company, has withdrawn from discussions stating the reason as being their view
that they would be unable to secure 100% of the Company's shares. Nevertheless,
the Directors still consider that there remains the possibility that as a result
of the interest, described herein, an offer could be made for the Company,
although there is no certainty that an offer will be made.


1 August 2005

Enquires

Peter Hammonds/Gareth Jones                        01624 694688 / 664
Conister Trust

Adam Hart                                          020 7418 8900
KBC Peel Hunt

James Henderson/ Charles Vivian                    020 7743 6670
Pelham Public Relations


The Directors of Conister Trust accept responsibility for the information
contained in this announcement. To the best of the knowledge and belief of the
Directors of Conister Trust, who have taken all reasonable care to ensure that
this is the case, such information is in accordance with the facts and does not
omit anything likely to affect the import of such information. This announcement
does not constitute an offer or invitation to purchase or subscribe for any
securities.

KBC Peel Hunt Ltd, which is authorised and regulated in the United Kingdom by
the Financial Services Authority, is acting exclusively for Conister Trust and
for no one else in connection with the proposed offer and is not advising any
other person or treating any other person as its client in relation thereto and
will not be responsible to anyone other than Conister Trust for providing the
protections afforded to clients of KBC Peel Hunt Ltd, or for giving advice to
any other person in relation to the proposed offer, the contents of this
announcement or any other matter referred to herein.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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