WTG.L Regulatory News (WTG)

Embargoed for release 7.00 am 3 April 2013

Quindell Portfolio Plc

("Quindell" or the "Group")

RAC 5 Year Contract Win- Potential Build to £500m Revenue Annually

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to provide a trading update and to announce its recent significant contract win with the RAC.

Highlights

• RAC contractsfinalised with potential to address over £500 million of UK auto claims costs annually

• 100% success rate in converting all outsourcing pilots into on-going long term contracts

• Growth rate accelerates with new prospects referencing existing clients to bypass pilot phase

The RAC outsourcing agreement

Quindell has agreed to enter into a 5 year contract with RAC for a combination of Quindell's market leading software, consultancy and technology enabled outsourcing services. This contract, which is significant from day one,has the potential to be the largest contract that the Group has entered into to date as revenues grow during 2013 and beyond. The contract enables an offering to RAC members that own vehicles representing circa 10% of the UK auto market. The cost of claims for the UK auto market is over ten billion pounds per annum and the offering addressesover 5% of this UK auto claims cost per annum, subject to claims reported and growth in conversion into service over the life of the contract.

RAC is one of the UK's most trusted and progressive motoring organisations with over 7 million members and this significant new agreement will see the RAC using Quindell's end to end proposition of a complete supply chain offering for Personal Injury claims, Medical Reporting, Multi Disciplined Rehabilitation plus Auto Accident Repair including Vehicle Hire Services and other Brand Extension Services.

The signing of the contract follows an initial pilot period until early 2013, which had resulted in an improvement of more than 50% on conversion rates and improved member awareness of service offering for RAC compared with the levels of performance over the previous 3 years. This has resulted in significant improvements in members' customer journeys whilst still ensuring that the service offered is operated in an ethical manner and delivers a 20% reduction in the total cost of claims. This is achievable by addressing the total cost of claims, including the provision of a quality legal and rehabilitation service for members, rather than simply focusing on recovering and repairing members' vehicles.

RAC has agreed to a payment profile for their financial benefit that ensures that the agreement remains cash positive on the majority of transactions for Quindell and thereforeQuindell does not have to utilise a significant proportion of the circa £80 million of additional funding recently procured to support the working capital requirements of this agreement and the majority of these funding lines remain available to support further organic growth.

The RAC technology agreement

The initial phase of the technology element of the RAC agreement is valued at circa £4 million and the majority of these revenues will be earned before the end of 2013, with subsequent phases being discussed for the implementation of the technology into other areas of the business. RAC are also working with Quindell to support other jointly planned initiatives including some areas of RAC's recently announced telematics based initiatives.

After extensive market evaluation, RAC has chosen to implement Quindell's award winning Challenger ICE Claims and ICE Track analytics and business intelligence technology platform. Quindell's ICE technology platform will underpin RAC's business processes and give RAC the flexibility to adapt and react rapidly to market changes within the accident management arena. In addition, it will help RAC achieve increased customer conversion, increase cross-selling and enable RAC to operate multiple processes in parallel. This will allow RAC to continue to challenge existing champion processes and continue to improve the customer journey of its members.

Warrant Issue to RAC

In line with Quindell's strategy to become a central claims hub for the insurance industry to help drive down the total cost of claims and to therefore encourage stake holding by key members of the industry, the RAC will be granted warrants over 250 million shares in the capital of Quindell exercisable at £0.13 per share (this equates to a value of £32.5 million), or the average trading price in the 30 days prior to the move to full LSE listing if lower.However, the Board will only recommend amove to the full list once the share price has been trading at a significant premium to £0.13 for a reasonable period of time to ensure entry into the appropriate FTSE indexes. These Warrants shall be exercisable at any time by the RAC during the next 24 months or until Quindell's AIM listing moves to a full LSE listing, if earlier. Any profits achieved above the cost of the warrants will be subject to lock in arrangements ranging from 12 to 36 months.

Kerry Michael, RAC Commercial Director, said: "RAC has been looking after our members and their needs for more than 115 years and our association with Quindell will enable us to continue delivering market leading propositions into the future. Together with Quindell, we are improving the customer journey for our Members whilst driving down the cost of claims for the industry as a whole.

Quindell's technology and integrated outsourcing offering is market leading and we believe offers our members and commercial partners a best of breed solution that will enhance their driving experience"

Rob Terry, Chairman and Group Chief Executive of Quindell, said: "We are delighted to announce this significant new contract with such a distinguished and respected brand as RAC. This agreement once again validates Quindell's significant market leading model, which we believe will revolutionise the insurance industry, through a combination of innovative technology and integrated supply chain stamping down the cost of claims whilst above all improving the customer experience for the brands who choose to partner with Quindell.

As previously stated we are delighted to announce this significant contract and look forward to announcing the details of some of our other recent significant contract wins during April in the lead up to our full year preliminary results announcement for the year ended 31 December 2012 on the 7 May 2013."

Trading update

As previously stated, the Group is enjoying a strong start to the new financial year. The Group has continued to be successful in converting pilots to full relationships, achieving a 100% success rate, with all the major outsourcing and partnership pilots that the Group announced during the latter stages of 2012 as being in progress now successfully converted into ongoing relationships. The final terms of these agreements, which are now being put in place, range from rolling contracts with several months' notice to contracts with a minimum five year duration. The conversion of each of these pilots, together with other outsourcing wins that the Group has gained, now provide the Group with visibility of the outsourcing volumes required to meet the market's current full year revenue expectations for 2013.

Readiness for the recent regulatory changes within the UK insurance sector that came into force on 1 April 2013 is, without doubt, one of the leading considerations within the boardrooms of the Group's prospective customers and this, together with further clarity issued by the Government as the 1 April date approached, means that sales cycles are continuing to be accelerated. This acceleration has also increased as recent contract wins have been confirmed without going through a pilot stage as prospective customers have been happy taking references from existing clients.

For further information:

Notes to Editors:

Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors. Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million. Post gaining approval by the Solicitors Regulation Authority and the acquisition of our legal businesses in December 2012, including the law firm Silverbeck Rymer, Quindell finished 2012 with run rate revenue of more than £300 million.

Our Industry Sectors

In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.

Our Solutions

The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.

With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.

For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique and ethically based proposition for the insurance industry today.

Our Customers

Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.

Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.

For further information, please visit www.quindell.com