Loan Note Redemption

RNS Number:7184X
Public Recruitment Group plc
04 June 2007


                     Public Recruitment Group (the "Group")

                              Loan Note Redemption

Following the placing announced on 25 April 2007 (the "Placing") and pursuant to
the stated intentions to use the proceeds from the Placing to reduce net debt
and support the working capital of the Group, the Group has agreed to redeem the
loan notes held equally by Matthew Ellis and Dean Kelly. These redemptions cover
the total principal amounts of #1,861,045 and #138,955 and the combined
redemption sum of #2.0 million will be satisfied entirely in cash. The loan note
redemption will become effective on 5 June 2007.

The directors of Public Recruitment Group, other than Matthew Ellis and Dean
Kelly who are deemed to be related parties to the Group, due to their respective
executive directorships of the Group, consider, having consulted with Bridgewell
Limited, that the terms of the transaction are fair and reasonable insofar as
the Group's shareholders are concerned.

The directors believe that these loan note redemptions are beneficial to the
Group, as they will result in a reduction in long-term debt which will help to
strengthen the Group's balance sheet. Following the Placing, the sale of the
healthcare division and the repayment of this loan stock, the gearing of the
Group will stand at 31%. The directors believe that this further enhances the
Group's financial credibility with potential customers and partners. In
addition, the redemption of the loan notes with a coupon of 9.5 per cent. per
annum will result in a reduction in annual interest payments and so be
beneficial to the Group's cash flows.


For further enquiries:
               
Enquiries:     Daniel Urmson/Katharine Spedding
               Public Recruitment Group PLC
               0114 283 4925

               Ginny Pulbrook / Fiona Bradshaw
               Citigate Dewe Rogerson
               0207 638 9571


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