Further re. EGM

RNS Number:4858Z
August Equity Trust PLC
02 July 2007

2 July 2007



August Equity Trust plc (the "Company")


The Company has received a form TR-1: Notification of Major Interests in Shares
which discloses that discretionary funds managed by New Star Asset Management
Limited ("New Star") have an interest in aggregate of 44.24% of the Company's
issued share capital.

As part of the Company's recent reconstruction proposals, the Takeover Panel
granted a waiver such that neither customers of New Star nor any member of the
New Star Group (the New Star Funds) were required to make a general offer to
Shareholders under Rule 9 of the City Code should their holding in the Company
be increased to a maximum of 39 per cent. of the total shares in issue following
the reconstruction.

This waiver became unconditional at an Extraordinary General Meeting of the
Company on 15 June 2007 when independent shareholders approved that the New Star
Funds were required to make no such offer.

The shareholding of 39 per cent. referred to above was disclosed in the
Company's circular to shareholders dated 23 May 2007. This was meant to be the
New Star Funds' maximum holding following the reconstruction, and was incorrect.
At the Company's request, the Takeover Panel is prepared to grant a waiver of
the requirement to make a general offer to shareholders under Rule 9 of the City
Code in respect of the 44.24% holding, subject to the following:

*  the New Star Funds undertaking to exercise no more than 39% of the voting 
   rights of the Company (after adjusting for the lower total voting rights
   of the Company);

*  the New Star Funds undertake not to purchase any Shares. There is no 
   restriction on the ability for the New Star Funds to sell their shares in the
   market up to the point of the Extraordinary General Meeting referred to 
   below;

*  the New Star Funds will not, without consent of the Takeover Panel, accept 
   their shares in any takeover offer nor commit to sell their shares in any
   takeover offer;

*  the Company posts a circular to Shareholders, as soon as practicable
   convening an Extraordinary General Meeting, to obtain approval of independent
   shareholders for the New Star Funds not to make a general offer under Rule 9 
   of the City Code

The New Star Funds reserve the right to sell any of their holding in the Company
in the market, up to the point of the forthcoming Extraordinary General Meeting.

The Company anticipates posting the circular to shareholders by the end of this
week which will convene the Extraordinary General Meeting by the end of July
2007.

The above conditions of the waiver will fall away should Shareholder approval be
obtained or the New Star Funds sell their shares in the market such that the
resultant holding is at 39% or below. Should Shareholder approval not be
obtained at the forthcoming Extraordinary General Meeting, the Takeover Panel is
prepared to grant a waiver of the requirement to make a general offer as long as
the New Star Funds reduce their holding in the Company to 39 per cent. within
ten business days of the Extraordinary General Meeting.


Enquires

Angus Gordon Lennox                                                020 7588 2828
JPMorgan Cazenove Limited - Financial Advisors to the Company




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