TP ICAP Regulatory News (TCAP)

9 May 2013

Tullett Prebon plc

AGM Statement and Interim Management Statement

Tullett Prebon plc (the "Company") is today issuing its Interim Management Statement in relation to the period from 1 January 2013. This statement will be delivered to those attending the Annual General Meeting today.

Business Update

As expected, market conditions have continued to be challenging. The level of activity in the world's financial markets has remained subdued reflecting persistently low volatility. Market volumes also continue to be adversely affected by the more onerous regulatory environment applicable to many of our customers, and by the considerable uncertainty over the impact of new regulations covering the OTC markets, both of which reduce our customers' ability and willingness to trade.

Revenue in the four months to April was £293m, 4% lower than reported for the equivalent period last year. At constant exchange rates revenue was also 4% lower.

The business has continued to develop its hybrid electronic broking offering to comply with regulatory requirements and to respond to market demand. We are well prepared for the implementation in the USA of the rules relating to swap and security-based swap execution facilities, and we intend to launch platforms in the USA for those products which are within the scope of the rules after those rules have been published in final form.

We have recently finalised the terms of a participation agreement under which a minimum of 12 leading banks will supply electronic streaming liquidity for Euro interest rate derivatives through tpSWAPDEAL, our interest rate swap platform.

Legal action continues to be pursued against BGC and former employees in the USA in response to the raid on the business by BGC in the second half of 2009. The FINRA arbitration on the claim brought by the subsidiary companies in the United States directly affected by the raid is expected to continue through the first half of this year. The outcome of the arbitration is expected to be determined before the end of the year. A separate action is being pursued by the Company and the directly affected subsidiaries in the New Jersey Superior Court, alleging, among other causes of action, violations under the NJ RICO Act. Discovery is ongoing and no trial date has been set. Since 1 January, £6.8m of costs have been incurred in relation to these actions. Consistent with the treatment adopted in 2012, these costs will be recognised as an exceptional charge in the 2013 accounts.

On 19 April the Company entered into a new three year £150m revolving credit facility replacing the previous bank facilities. All the outstanding bank term debt under the previous facility has now been repaid. The Company's financial position remains strong.

Enquiries:

Nigel Szembel, Head of Communications, Tullett Prebon plc

Direct: +44 (0)20 7200 7722