Termination of investment management agreement

    FOR IMMEDIATE RELEASE

                                                              12 September 2008

                      New Star Asset Management Group PLC                      

                Termination of investment management agreement                 

New Star announces that Family Assurance Friendly Society Limited ("Family")
has today given New Star notice of termination of Family's investment
management agreement with New Star under which New Star manages £1.4 billion of
assets on Family's behalf.

New Star was first appointed as investment manager by Family in February 2004
for a four-year period and was reappointed in February 2008 on a rolling
three-month basis.

Family has informed New Star that it intends to have the relevant funds managed
predominantly on an index-tracking basis by a new investment manager. The date
of transfer to this manager will be 1 December 2008.

Although the assets managed on behalf of Family were significant in relation to
the total assets managed by New Star, the loss of these assets is not expected
to have a material effect on New Star's operating profit. New Star's assets
under management were £19.1 billion at 27 August 2008.

Enquiries:

Citigate Dewe Rogerson

Anthony Carlisle (office) 020 7638 9571 (mobile) 07973 611888



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