UK’s Financial Services Authority And Exeter Asset Management Limited Announce Details Of Split Capital Investment Trust Settlement

The FSA has been conducting an investigation into the activities of certain fund managers and brokers within the split capital investment trust sector between September 2000 and February 2002. On 24 December 2004, the FSA announced that it had reached agreement with 18 firms to resolve this investigation.

The FSA has now reached agreement with Exeter Asset Management Limited, a fund manager that was not a party to the 24 December agreement. Exeter Asset Management Limited has agreed to make a contribution of £1,000,000 to the settlement fund ("the Fund") set up by the 24 December agreement.

Exeter Asset Management Limited has agreed to the publication of this statement for the purposes only of this agreement and without any admissions. The FSA has made no determination of regulatory breaches or imposed any penalties.

The contribution made by Exeter Asset Management Limited is being paid to Fund Distribution Limited ("FDL"), the company established to administer distributions from the Fund, and will be distributed in accordance with the same rules as announced on 24 December 2004. Exeter Asset Management Limited acted as a fund manager to a number of financial products in respect of which investors may be eligible for a distribution from FDL, subject to certain eligibility criteria. These financial products are the zero dividend preference shares of Exeter Equity Growth & Income Fund, Exeter Financials Fund and Exeter Smaller Companies Income Fund and the shares of the Progressive Growth Pool of Exeter Selective Assets Investment Trust. Those investments where Exeter Fund Managers Limited was the fund manager are not eligible for a distribution from FDL. It is anticipated that, from the information currently available, the agreement with Exeter Asset Management Limited will have only a limited effect on the level of recovery for those investors who will be eligible for a distribution from FDL.

FDL has confirmed that it expects to invite applications for distributions from the Fund before the end of April. A full announcement confirming the process and timelines will be made in due course by FDL. At such time, FDL will issue application forms and guides to those investors who have already registered an interest in applying to the Fund. FDL is also working with registrars and firms acting as nominees to seek their support in identifying potentially eligible investors. Those investors who believe they may be eligible to apply are advised to register their interest as soon as possible via the website www.funddistribution.org or by telephoning the FDL helpline on 0845 606 6389