AVS.L Regulatory News (AVS)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

24 January 2014

AVESCO GROUP PLC

("AVESCO" OR THE "COMPANY")

RETURN OF CASH TO SHAREHOLDERS:

RESULTS OF B/C SHARE SCHEME ELECTIONS

Following approval by Shareholders of the Return of Cash and certain related matters at the General Meeting of the Company held on 22 January 2014, the Company today provides an update in respect of the Return of Cash by way of the B/C Share Scheme.

Results of B/C Share Scheme elections

As at the Election Deadline of 1.00 p.m. on 23 January 2014, Shareholders' elections or, as the case may be, deemed elections, for the Share Alternatives in respect of the B/C Share Scheme were as follows:

* Percentage based on issued share capital excluding treasury shares

Shareholders who had not made a valid election for the Capital Option and all Overseas Shareholders resident, or with a registered address, in a Restricted Jurisdiction have been deemed to have elected for the Income Option in respect of all of their B/C Share Entitlement.

10,992,850 B Shares of 110 pence each and 14,958,700 C Shares of 0.001 pence each will today be issued and allotted to Shareholders based on the elections (or deemed elections) made by them.

No share certificates will be issued in respect of the B Shares, C Shares or Deferred Shares. None of the B Shares, C Shares or Deferred Shares will be admitted to trading on AIM, nor will the B Shares, C Shares or Deferred Shares be listed or admitted to trading on any recognised investment exchange.

Redemption of B Shares (Capital Option)

All B Shares of 110 pence each to be issued pursuant to the Capital Option are expected to be redeemed today for 110 pence per B Share. Once they have been redeemed, B Shares will be cancelled.

If you are a Certificated Shareholder and you validly elect for the Capital Option in respect of some or all of your B/C Share Entitlement, it is expected that you will be sent a cheque for the payment in respect of your B Shares on 31 January 2014.

If you are an Uncertificated Shareholder and you validly elect for the Capital Option in respect of some or all of your B/C Share Entitlement, it is expected that your CREST account will be credited with the payment in respect of your B Shares on 31 January 2014.

All payments will be made in Sterling. Certificated Shareholders residing or banking outside the UK should contact the Shareholder Helpline regarding arrangements for overseas payment in a currency other than Sterling.

C Share Dividend (Income Option)

The C Share Dividend of 110 pence per C Share to be issued pursuant to the Income Option, will become payable today. Consequently, immediately upon their issuance and allotment, the C Shares will automatically be reclassified as Deferred Shares.

If you are a Certificated Shareholder and you are deemed to have validly elected for the Income Option in respect of some or all of your B/C Share Entitlement, it is expected that you will be sent a cheque in respect of the C Share Dividend on 31 January 2014.

If you are an Uncertificated Shareholder and you are deemed to have validly elected for the Income Option in respect of some or all of your B/C Share Entitlement, it is expected that your CREST account will be credited with the C Share Dividend on 31 January 2014.

If dividend mandate instructions in respect of a UK Sterling bank account are held for you, it is expected that you will be paid in respect of the C Share Dividend by BACS to that bank account in accordance with such instructions (unless revoked or amended) on 31 January 2014.

All payments will be made in Sterling. Certificated Shareholders residing or banking outside the UK should contact the Shareholder Helpline regarding arrangements for overseas payment in a currency other than Sterling.

Shareholder helpline

Shareholders who need assistance or have any queries should telephone the Shareholder Helpline on 0871 664 0321 from within the UK or on +44 20 8639 3399 if calling from outside the UK. Calls to the 0871 664 0321 number cost 10 pence per minute from a BT landline. Other network providers' costs may vary. Lines are open 9.00 a.m. to 5.30 p.m. (London time) Monday to Friday. Calls to the helpline from outside the UK will be charged at the applicable international rate. Different charges may apply to calls from mobile telephones and calls may be recorded and randomly monitored for security and training purposes. The helpline cannot provide advice on the merits of the Return of Cash and/or the B/C Share Scheme nor give any financial, legal or tax advice.

Enquiries

For further information please contact:

Important information

Unless otherwise stated, references to time contained in this announcement are to London time.

This announcement is for informational purposes only and does not constitute an invitation to participate in the B/C Share Scheme in or from any jurisdiction in or from which, or to or from whom, it is unlawful to make such offer under applicable securities laws or otherwise.

No application has been, or will be, made to any investment exchange or trading platform for listing or admission to trading of the B Shares, C Shares or Deferred Shares to be issued under the B/C Share Scheme.

None of the B Shares, C Shares or Deferred Shares have been or will be registered under the United States Securities Act of 1933 (as amended) (the "US Securities Act") or the state securities laws of the United States and none of them may be offered or sold in the United States unless pursuant to a transaction that has been registered under the US Securities Act and the relevant state securities laws or a transaction that is not subject to the registration requirements of the US Securities Act and the state securities laws, either due to an exemption therefrom or otherwise. There will be no public offering of securities in the United States.