MHG.L Regulatory News (MHG)

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

Issue of Equity

The following amendment has been made to the 'Issue of Equity' announcement released on 26 January 2011 at 16.52 under RNS No 1472A.

The Company has applied for the admission of 288,513,327 new Ordinary Shares as opposed to 397,384,294 new Ordinary Shares previously announced.

In addition admission is now expected to take place, and dealings are expected to commence, on 1 February 2011

All other details remain unchanged.

The full amended text is shown below.

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

21 January 2011

Issue of Equity

Further to the announcement issued on 27 October 2010 the Company has today issued and allotted 288,513,327 new Ordinary Shares ("Second Tranche Shares") pursuant to proposals described in a circular to shareholders dated 3 August 2010 and approved by shareholder resolutions passed at the AGM (the "Proposals"). Application has been made to have these shares admitted to trading on AIM. Admission is expected to take place, and dealings are expected to commence, on 1 February 2011. Following the issue of shares referred to above, a further 50,000,000 Second Tranche Shares to be issued pursuant to the Proposals remain unissued. These remaining Second Tranche Shares will be issued and allotted once FSA approval has been received for the issue of same. The date for admission to AIM of the remaining Second Tranche Shares will be announced in due course.

Following the issue of 288,513,327 Second Tranche Shares, the issued share capital comprises 1,245,176,497 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 1,245,176,497 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.

Enquiries:

Merchant House Group Plc

James Holmes

Tel: 020 7332 2200

Shore Capital and Corporate Limited

Pascal Keane

Tel: 020 7408 4090