Close Brothers announces that it has reached agreement with Singer & Friedlander plc for the acquisition of a substantial proportion of the loan portfolio of S&F Finance. The assets being acquired are loan agreements for the purchase of predominantly used cars. The purchase will be made by Close Brothers' banking subsidiary, Close Brothers Limited, and will be funded from the bank's existing resources. The loans will be collected out by Close Motor Finance Limited, the bank's motor finance subsidiary. Completion is expected to occur on 7 January 2005.

The consideration for the assets being acquired is approximately £131 million, subject to a completion balance sheet audit, and will be paid in cash. The consideration reflects a discount to book value of £2.2 million. An escrow account of £2 million will be established to cover bad debts incurred in excess of the doubtful debt provisions at completion.

Commenting on the acquisition, Mr Hodges, Chairman of Close Brothers Limited, said "Close Motor Finance is well placed to collect out these loans profitably. This acquisition will result in Singer & Friedlander's exit from the consumer motor finance market and give us access to a number of independent motor dealers, from whom further car loan finance opportunities may be forthcoming."

Further Enquiries:

Stephen Hodges, Close Brothers Limited - 020 7426 4000