MFG Miller Fisher

RNS Number:6821A
Miller Fisher Group PLC
19 March 2001


                           Miller Fisher Group plc

      announces sale of insurance subsidiary Homecare (Holdings) Limited

                               for #4.5 million


The Board of Miller Fisher Group plc ("Miller Fisher"), the provider of
support services to the insurance and financial services industries, announces
that Miller Fisher has entered into a contract for the sale of its wholly
owned subsidiary Homecare (Holdings) Limited ("Homecare") to CPP Holdings
Limited ("CPP").

Homecare is the parent company of Homecare Insurance Limited ("Homecare
Insurance"), an authorised insurance company which specialises in providing
theft and accidental damage insurance for mobile telephones and other
electrical products. Homecare Insurance also provides extended warranty
insurance.

Completion of the agreement is conditional upon the proposed change of control
of Homecare being approved by the Financial Services Authority.

The consideration comprises an initial payment to Miller Fisher by CPP of #2.2
million in cash. This amount will be increased or decreased by reference to
the consolidated net asset value (as adjusted) of Homecare and Homecare
Insurance at completion. In addition, CPP will assume responsibility from
Miller Fisher for all of Homecare's and Holly Insurance's assets and
liabilities, including Holly's net cash of #3.25 million and a bank debt of #
2.25 million. As part of the transaction, Miller Fisher and CPP have agreed
that Miller Fisher will retain the economic benefit and costs of the insurance
premium tax litigation in which Homecare Insurance is currently a claimant.

Based on a pro forma consolidation of the audited accounts of Homecare and
Homecare Insurance for the year ended 31 December 1999, Homecare contributed a
pre tax profit of approximately #240,000 to Miller Fisher's results. At that
date, the pro forma consolidated net asset value of Homecare and Homecare
Insurance was approximately #281,000. The sale of Homecare is expected to give
rise to an exceptional profit in the books of Miller Fisher in the current
year. The proceeds of the sale (net of expenses) will be used to reduce Miller
Fisher's overall indebtedness.


Commenting on the sale, Kevin Kenny, Chief Executive of Miller Fisher said:


"We indicated to shareholders when announcing our interim results in September
2000 that we were looking at ways to maximise the value of our investment in
Homecare. While it has been a growing and successful business, underwriting
mobile telephone insurance and related products is not part of our core
strategy for the future of developing third party administration and support
services for the insurance and financial services industries."


For further information please contact:

Miller Fisher                                                     020 7398 8700
Kevin Kenny
Richard Horton

Grandfield                                                        020 7417 4170
Clare Abbot


The Directors of Miller Fisher Group plc accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the directors of Miller Fisher Group plc (who have taken all
reasonable care to ensure that such is the case), the information contained in
this announcement is in accordance with the facts and does not omit anything
likely to affect the import of such information.


HSBC Investment Bank plc ("HSBC"), which is regulated in the UK by The
Securities and Futures Authority Limited, is acting exclusively for Miller
Fisher Group plc and no-one else in connection with the sale and, accordingly,
will not be responsible to anyone other than Miller Fisher Group plc for
providing the protections afforded to customers of HSBC.

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