Transfer of client assets from Pritchard Stockbrokers Limited to WH Ireland Limited.

5 March 2012

Pritchard Stockbrokers Limited (Pritchard) confirms that Pritchard and WH Ireland have agreed the transfer of responsibility to WH Ireland for all retail clients’ stock assets (but not client cash holdings) that were previously held and administered by Pritchard.

Please note that cash and assets held by Pritchard on behalf of Merchant Capital Limited’s structured products division will be transferred to Reyker Securities plc, pending authorisation of this transfer by the Financial Services Authority.  Please visit www.merchant-capital.com for further updates.

The client cash and client stock assets held on clients’ behalf by Pritchard were frozen by the Financial Services Authority (FSA) on 10 February 2012 and will remain frozen for the time being.  Open option positions were also frozen and responsibility for these will not pass to WH Ireland; a solution to this is being sought by Pritchard.

Pritchard is working to appoint an administrator as soon as possible. The administrator, once he has been able to review the client cash holdings positions, will return as much cash as possible directly to each client and for the benefit of the client. Until then, the client cash held by Pritchard is still frozen.

The transfer of client stock assets to WH Ireland’s control is now being prepared and it is anticipated that this will be completed in the coming weeks. Bargains that clients  entered into prior to 10 February 2012 that have not settled have been frozen. Pritchard will update clients as and when these positions are unwound and stock or cash is to be returned to them.  We understand that time is of the essence, but we must ensure that this is done accurately and in a controlled manner.

When client stock assets are successfully delivered into WH Ireland’s nominee company, Fitel Nominees Limited, WH Ireland will then take full responsibility for these client assets and a normal client service should be able to resume. Please be assured that the protection of clients’ assets will remain the top priority in this matter, and both Pritchard and WH Ireland are working hard to minimise any disruption to the service provided.

WH Ireland have sent a letter to each Pritchard client to advise of the agreement with Pritchard and giving clients further details about their relationship with them.

Pritchard will provide details of all transactions since the last reporting date until the date of the transfer, and WH Ireland will commence its reporting responsibilities from the date of the transfer.

May I take this opportunity to thank you for your patience during this difficult time.  Please be assured that the firm is doing all it can to expedite the release of all assets and the resumption of clients’ stockbroking services.

Please continue to visit www.pritchard.co.uk for updates on the client cash work being undertaken by Pritchard. Please visit www.wh-ireland.co.uk for updates on the transfer of client stock holdings into WH Ireland’s control.  Please visit merchant-capital.com for updates on the arrangements they have made for the custody and administration services for their structured products division.