MHG.L Regulatory News (MHG)

Merchant House Group Plc ("Merchant House" or the "Company")

13 May 2010

Issues of Equity

Merchant House announces that it has today issued 13,700,000 new ordinary shares of 0.01p each in the capital of the Company ("New Shares"). The New Shares have been issued at an effective price of 0.45p per shareto Petersham Enterprises Limited ("Petersham") who have introduced and worked on business for Merchant Capital, the wholly owned FSA registered subsidiary of the Company valued at some EUR 300,000. The Company agreed in November 2009 that amounts which became payable to Petersham under the arrangement described above could be settled, at the option of Merchant House, in cash or through the issue of new Ordinary Shares in Merchant House at the share price prevailing at the time of their issue. The Board has decided, in order to conserve cash, to satisfy amounts owed to Petersham through the issue of the New Shares.

Application has been made today for the 13,700,000 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 19 May 2010.

As a result of the issue of the New Shares, the issued share capital now comprises 258,254,016 Ordinary Shares. There are no shares in treasury and there is no other class of share in issue which has voting rights. Consequently the Company's total number of voting rights is 258,254,016 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FSA's Disclosure and Transparency Rules.

Following the issue of the New Shares, Petersham has notified the Company that it has a holding of 13,700,000 Ordinary Shares equivalent to 5.31 per cent. of the enlarged issued share capital of the Company.

Ends.

Enquiries:

Merchant House Group Plc

Martin Eberhardt

Tel: 020 7332 2200

Shore Capital and Corporate Limited

Pascal Keane

Tel: 020 7408 4090