Daniel Stewart Securities Plc Regulatory News (DAN)

7 October 2014

Daniel Stewart Securities plc ("Daniel Stewart" or "the Company")

Update on Suspension

Further to its announcement of 1 October 2014, the Company provides the following update.

On 1 October 2014 the Company announced that it was not able to publish its Annual Report for the year ended 31 March 2014 ("Accounts"). As a consequence, and pursuant to the AIM Rules for Companies, the Company's shares were temporarily suspended.

During the final stages of preparation of the Accounts, the Company identified a shortfall in its regulatory capital, under the European Capital Requirements Regulations and Directive CRR/CRD IV, and is in discussions with certain parties in order to strengthen the Company's balance sheet for regulatory capital purposes. Regulatory capital relates to the capital required to be maintained by Daniel Stewart as a financial services firm, to ensure that sufficient financial resources are available to cover the risk associated with the Company's business, as distinct from working capital, which is the capital required to operate the firm. As a result, the Company has not yet been able to publish the Accounts.

Additionally, the Company has had a number of offers of assistance presented to it and is reviewing all available options. The Directors are confident that this regulatory issue can be resolved shortly and a further announcement will be made in due course. Until such time as it publishes the Accounts, the Company's ordinary shares will remain suspended.

Enquiries:

DANIEL STEWART SECURITIES PLC Tel: 020 7776 6550

Peter Shea

WESTHOUSE SECURITIES Tel: 020 7601 6100

Richard Johnson / Martin Davison