Review of offshore business

RNS Number:9592M
Portman Building Society
30 November 2006

                                                                30 November 2006



                                 PRESS RELEASE



    PORTMAN TO ASSESS STRATEGIC OPTIONS FOR GUERNSEY DEPOSIT-TAKING BUSINESS



Portman Building Society ('Portman') today announces that it has appointed
Gleacher Shacklock LLP to assess the strategic options for its offshore Guernsey
based deposit-taking business Portman Channel Islands Limited ('PCIL').  The
range of options to be considered includes a sale of PCIL, following receipt of
a number of expressions of interest for the business from third parties.  There
can be no certainty that a transaction will be executed and continued ownership
as part of Portman Building Society is one of the options also being considered.


PCIL's role has been to supplement the funding the Portman Group obtains in the
UK with a range of fixed and variable rate deposit accounts for private
investors.  Deposit balances have grown four-fold over the past five years to
#630m.  The average individual deposit is in excess of #80,000 (year-end 2005).

Robert Sharpe, Chief Executive of Portman Building Society said: 'PCIL has
performed exceptionally well, with growing deposits and earnings.  We have
concluded that it would be an appropriate time to consider the options for the
business following the interest which has been shown in it.  This represents an
excellent opportunity for any business seeking to exploit the huge untapped
potential of the offshore deposit-taking market. PCIL would provide a fast track
entry into the offshore banking sector, more diverse funding and the opportunity
to expand into the fast growing wealth management industry.'


About Portman Building Society

Portman Building Society is the third largest UK building society and 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 in September 2006, 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 proposed merger is expected to
become effective by the end of September 2007, subject to approval being given
by Portman members and to confirmation by the Financial Services Authority.


About Portman Channel Islands Limited

Portman Channel Islands Limited is based in the Bailiwick of Guernsey and is the
offshore deposit-taking arm of Portman Building Society, which is registered in
England and Wales and is the ultimate holding entity.  PCIL is a wholly owned
subsidiary of Portman and is regulated by the Guernsey Financial Services
Commission.

PCIL operates largely as a standalone business, with high level strategic
objectives set by the Portman Board and the day-to-day operation of the business
managed by the PCIL Board.


Contacts

Portman Building Society
Robert Sharpe
[phone]

Gleacher Shacklock LLP
John Williams
[phone]


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