Kingswood H. Regulatory News (KWG)

11 December 2015

European Wealth Group Limited

("European Wealth", or "the Company", together with its subsidiaries the "Group")

Trading update and issue of equity

The Directors of European Wealth stated in the half yearly report of 22 September 2015, the Group had reached one of its initial targets of becoming EBITDA positive. However, it also stated that the second half of the year was going to be more challenging. Today the Company reports that turnover is expected to be behind forecasts and this may impact on EBITDA for the second half of the year.

Despite a weakness in global stock markets, Group funds under management/advice stood at a record £1.2 billion, an increase of 20% since the beginning of the current year, as at 30 November 2015.

Slower than expected progress has been made in attracting new funds under management. Whilst the cross selling between the divisions of the Group are showing a material improvement, many of the new revenue generators are taking longer to build an established client base than we had originally anticipated which together with the subdued trading volumes in global stock markets has resulted in our wealth management division being behind budget.

The acquisition of European Wealth (Switzerland) SA in November 2014 was the first step in European Wealth building an international presence. This was followed by an announcement in November of Montpelier, an Independent Financial Advisor in the Far East, appointing European Wealth's investment management business, European Investment Management Limited, as a preferred discretionary fund manager.

The acquisition of Xcap Nominees, which was announced at the end of November, is taking longer than anticipated to complete. We expect the delay to be resolved soon and as stated in the Company's announcement of 23 November 2015, this acquisition is expected to bring in over £30m of assets under management with a minimal capital outlay.

The Directors of European Wealth also announce today that following the calculation of the deferred consideration payable to Bruce Albrecht and Iain Little, the vendors of European Wealth (Switzerland) SA (formerly known as P&C Global Wealth Managers SA) (the "Vendors"), a further 234,184 ordinary shares of 0.5p each in the Company ("Ordinary Shares") will be issued to the Vendors in equal amounts at a price of 104.9p.

Following the issue of these Ordinary Shares the Company will have 23,446,845 shares in issue, with Bruce Albrecht and Iain Little owning 771,902 shares each, representing 3.29% of the Company's issued share capital. Application will be made for these shares to be issued today, with the shares expecting to start trading on 16 December.

The foundations that have been put in place during the course of 2015 are expected to deliver growth in the next 12 months as the Group continues to build on its original strategy of organic growth, acquisition and the attraction of revenue-generating staff. These foundations have already facilitated growth in AUM, supported by a back office function that has only increased head count by one in the last 12 months.

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Notes to Editors

European Wealth is a fast growing wealth management business founded in 2010 with headquarters in London and with offices in the United Kingdom and Switzerland.

Through its operating subsidiaries, which are authorised and regulated by the Financial Conduct Authority, European Wealth provides investment management and financial planning services.

With assets of over £1 billion, the European Wealth provides sophisticated investment management services to individuals, their families, trustees, professional intermediaries and institutions.

For more information please go to www.europeanwealth.com