Merger Update

RNS Number:7704J
Portman Building Society
02 October 2006

PRESS RELEASE

For Immediate Release


2 October 2006

                THE MERGER BETWEEN PORTMAN AND LAMBETH COMPLETES

Portman and Lambeth building societies are pleased to announce that the merger
has now completed. The combined Society will operate as Portman Building Society
and members of Lambeth Building Society will become members of Portman and will
have the same voting rights as Portman members.


Commenting on the announcement, Robert Sharpe, Chief Executive of Portman
Building Society said: "I am delighted that the merger has now completed.
Lambeth members are joining us at an exciting time, following our recent
proposed merger announcement with Nationwide Building Society. If the proposed
merger is approved,  both Portman and Lambeth members will benefit from
efficiencies of scale, access to a substantially enlarged branch network and a
merger bonus for those members who qualify."


Chris Radford, Chief Executive of Lambeth Building Society added: "The
completion of the merger is good news for members. They will continue to benefit
over the long term from competitive products supported by excellent service and
a wider branch network."


-ENDS-


Editors' notes:


Information about the Portman and Lambeth merger is available at lambeth.co.uk.
Member Helpline: 0845 600 0913


Information about the Portman and Nationwide merger is available at
portman.co.uk. Member Helpline: 0845 840 6000


About Portman Building Society


Portman is the third largest UK building society and the 13th largest UK
mortgage lender. In the period 2000 to 2005, Portman was the fastest growing top
ten building society in terms of total assets.


The Portman Group employs over 2,500 people, serves 1.8 million members and, as
at 30 June 2006, had total assets of #18.7 billion and general reserves of #704
million. Pre-tax profit for the six months ended 30 June 2006 was #44.5 million
(#85 million for the full year ended 31 December 2005).


Following the merger with Lambeth Building Society, Portman has a network of 149
branches. Its Head Office is in Bournemouth and it has an administration centre
in Wolverhampton.


On 12 September 2006, the Boards of Nationwide and Portman Building Societies
announced that they had agreed to merge. The merger is expected to become
effective by the end of September 2007, subject to approval being given by
Portman members, confirmation by the Financial Services Authority (FSA), and
approval by the Office of Fair Trading.


For further information please contact:

Lynsey Hallam

Group Press Officer

01202 562256



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