MHG.L Regulatory News (MHG)

17 February 2012

Merchant House Group plc

("MHG" or the "Group")

Merchant Wealth

Further to the business review and trading update announcement made on 13 February 2012, MHG is pleased to announce that Merchant Capital Limited ("MCL"), a wholly owned subsidiary of MHG, has today launched Merchant Wealth and appointed Tom Evans as its managing director. Merchant Wealth will include the existing stockbroking and corporate broking services of the Group and will be a further distribution channel to raise capital for MCL's structured products and funds.

The launch of Merchant Wealth is in line with the Group strategy to drive organic growth during 2012 and in doing so will create a private client wealth management service to support the Investment Products division.

Tom Evans, managing director of Merchant Wealth commented:

"I am delighted to be joining a growing and innovative business and leading a team that I have put together in the last couple of months. Merchant Wealth will seek to expand the team going forward and intends to announce its strategic partners in the near future."

Christopher Day, CEO of Merchant House Group plc, added;

"Merchant Wealth will be complementary to Merchant House Financial Services Limited ("MHFS"). The two businesses form the Distribution division of the Group. In addition to generic growth of the individual businesses, the division is a channel for the distribution of the Group's Investment Products division."

For further information:

Merchant House Group plc +44 (0) 20 7332 2200

James Holmes, Chairman

Christopher Day, CEO

Merchant Wealth +44 (0) 20 7332 2217

Tom Evans

Cairn Financial Advisers LLP +44 (0) 20 7148 7900

Liam Murray / Avi Robinson

Symvan Securities +44 (0) 20 7464 4260

Kealan Doyle / Nicholas Nicolaides

CityRoad Communications +44 (0) 207 248 8010

Paul Quade