Re Agreement

RNS Number:9037S
Millfield Group PLC
05 December 2003

Date                          5 December

On behalf of:                 The Millfield Group plc

Embargoed until:              0701hrs



MILLFIELD ANNOUNCES DEAL WITH NORWICH UNION
TO TRANSFORM LIFETIME BUSINESS

*     Norwich Union finalises #10m investment

*     Creation of #2.2m Economic Gain on Lifetime Investment for
      Millfield


The Board of Millfield Group plc ("Millfield") today announces the completion of
an agreement with Norwich Union Life and Pensions Limited ("Norwich Union") for
the UK's largest insurer to invest in, and become a full partner in, Lifetime
Group ("Lifetime").  The deal is set to transform the Lifetime business and
delivers a #0.8m economic gain for Millfield in its interim results announced
today and a further #1.4m in the second half of its financial year which will be
taken directly to reserves.

Lifetime will provide an integrated investment and asset management platform
designed by IFAs for IFAs and their clients.  The platform, which is being
developed to be used across the financial services industry, will incorporate
features such as asset registry, allocation tools and a fully integrated tax /
product wrap capability.

Lifetime has issued a further 11,736,354 shares to Norwich Union for a
consideration of #8.0m taking its shareholding to 49.9%.  Millfield retains a
shareholding of 41.3%.  The remaining 8.8% of the shares are held by the
founders. Norwich Union's present intention is to at least retain its
shareholding at 49.9% as further investors in Lifetime are sought.

As a result of the investment by Norwich Union, the business plan has been
upgraded to incorporate the substantial distribution benefits Norwich Union
brings.  This plan developed in conjunction with Norwich Union will deliver a
platform that will add value to the IFA proposition. It will bring together key
elements of a client's assets to create an overall 'wealth picture' that is
current and readily accessible, on-line, by advisers and their clients. Lifetime
is expected to be launched in the next six months.

Paul Tebbutt, Chief Executive of Millfield Group, said:

"We know that the Lifetime Portfolio wrap service will provide the financial
services industry with the tool needed to enable advisers to service their
customers efficiently and effectively.  It has always been our stated strategy
to develop the business by extending the Lifetime investor base with partners
such as Norwich Union who bring both financial support and many additional
benefits such as the opportunity to forge wider relationships across the long
term savings industry.  Our foresight in investing in this platform since
inception is delivering strong returns for all Millfield's stakeholders and we
welcome this significant landmark in the platform's development."

Robert Fletcher, Norwich Union's director of distribution strategy, said:

"Norwich Union offers a wide range of products and services through a range of
distribution channels and we see wraps as complementary to these.  We see wraps
as playing an important role in the development of the advisory market going 
forward. Our investment in the Lifetime wrap platform is an important part of 
our longer term planning. We look forward to working with Lifetime and other 
shareholders to ensure the success of this venture."

Jeremy Bradburne, Chief Executive of Lifetime, said:

"We are delighted to have completed the agreement with Norwich Union. It allows
us to complete the development of an on-line, real time platform offering
attractive services to financial advisers and their clients including asset
allocation, business efficiencies and managing client relationships in the UK.
The enhanced distribution channels opened by Norwich Union will allow Lifetime
to flourish.

                                    - Ends -


Enquiries to


Millfield Group plc
Paul Tebbutt, Chief Executive                                 Tel: [phone]
Harry Roome, Finance & Operations Director                    Tel: [phone]

Norwich Union Life
James Evans, Head of Media Relations                           Tel: [phone]
Ian Beggs, Media Relations Manager                             Tel: [phone]

Lifetime Group
Jeremy Bradburne                                              Tel: [phone]

Redleaf Communications (on behalf of Millfield)
Emma Kane                                                     Tel: [phone]
Nick Lambert                                                  Tel: [phone]

Lansons Communications (on behalf of Lifetime)
Helen Proud                                                  Tel:  [phone]



Notes to Editors

About Millfield

*   Millfield Group plc was floated on the Alternative Investment Market of the 
    London Stock Exchange in March 2001.

*   Millfield is a national independent financial advisory company in the 
    UK, offering truly independent advice, primarily in the pensions, life
    insurance, investment and mortgage sectors, as well as long-term care 
    provision, personal wealth management and the corporate financial planning 
    arena.  Millfield also has specialist divisions dealing with offshore 
    investment, insurance and employee benefits.

*   On 24 July, Millfield announced an agreement in principle with Norwich Union 
    Life and Pensions Limited ("Norwich Union") for them to invest in and become  
    a full partner in developing Millfield's Lifetime joint venture.

*   As a result, Millfield converted preference shares to ordinary shares and 
    Lifetime issued 1,024,998 new ordinary 1p shares to Norwich Union for #2.0m.

*   Following these transactions; Millfield held 45.17% of the shares in
    Lifetime as an investment and 31.17% for resale, and Norwich Union held 
    7.41%.  These transactions resulted in the value of Millfield's share in the 
    Joint Venture increasing by #0.8m and this increase in the net assets has 
    been included in the half year results as a movement on reserves.


About Lifetime

The Lifetime Portfolio proposition will provide an integrated investment and
asset management service enabling effective asset allocation which has been
identified as having the greatest impact on a client's financial health.
Investors will work in conjunction with their financial adviser to aggregate
their investments onto the Lifetime Platform.  The Lifetime proposition will
bring key elements of a client's assets together creating an overall wealth
picture.  Both client and adviser will be able to assess existing assets
according to different criteria (e.g. risk rating or tax efficiency).  The
information will be current, in one place (on-line) and readily accessible.

Most financial services organizations have been focused on  selling more of a
particular product rather than ensuring that their clients receive independent
advice. Lifetime will enable advisers to make informed judgments about future
plans based on accurate, timely and complete information with regard to their
clients' current assets and liabilities.  It is these  clients (and their
advisers) that the Lifetime Group is focusing on particularly investors in
pension plans, unit trusts, OEICs (and other collectives), shareholders and
homeowners.  In short, effective wealth management is not just for the rich, it
should be available to everyone prepared to commit existing income and capital
for future independence and prosperity.

Wrap propositions have proved to be popular and successful with both clients and
advisers in the Australian and US retail financial services markets. While there
are differences in the way markets operate across international boundaries, the
underlying business drivers remain the same.

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

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