DTY.L Regulatory News (DTY)

For immediate release 13 September 2010

Dignity plc

Issue of Preliminary Prospectus by Dignity Finance PLC

Dignity plc announced in its interim results on 30 July 2010 that it was investigating the potential to issue further Secured Notes. It also announced on 26 August 2010 that Dignity Finance PLC (a subsidiary of Dignity (2002) Limited, the holding company of the securitised sub-group of Dignity plc) had called a meeting of Class A Noteholders to be held on 17 September 2010. The principal purpose of the meeting is for Dignity Finance PLC to obtain certain consents and waivers (the 'Consent Solicitation') from the Class A Noteholders in order to facilitate a further issue of Secured Notes.

As a result of the votes already made by Class A Noteholders, Dignity plc believes that it is likely that the Consent Solicitation will be approved by the Class A Noteholders. Consequently, Dignity plc announces that its subsidiary, Dignity Finance PLC has today issued a Preliminary Prospectus in respect of a potential issue of further Secured Notes.

It is the Dignity group's intention to issue further Class A Notes with an outstanding nominal amount of up to £38.9million and further Class B Notes with an outstanding nominal amount of up to £33.1million. The actual proceeds raised from these Notes will depend on the market price and market conditions at the time of any issue.

In the event that a further issue of Secured Notes is completed, the Board anticipates that the majority of the proceeds will be returned to shareholders.

Any decision to issue further Secured Notes will be subject to market conditions prevailing at the time and the issue of a Prospectus by Dignity Finance PLC, as defined in Article 5.4 of Directive 2003/71/EC. The Preliminary Prospectus is an advertisement and does not comprise a prospectus for the purposes of EU Directive 2003/71/EC. The Preliminary Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities of Dignity Finance PLC.

There can be no guarantee that further Secured Notes will be issued and the votes described do not guarantee that the resolutions will be passed at the meeting of Class A Noteholders on 17 September 2010.

The Group will make further announcements as appropriate.

For more information

Mike McCollum, Chief Executive

Steve Whittern, Finance Director

Dignity plc +44 (0) 121 354 1557

Richard Oldworth

Suzanne Brocks

Christian Goodbody

Buchanan Communications +44 (0) 20 7466 5000