Update on Capital Reduction

Journey Group plc (the "Company")

Update on Reduction of Capital

Further to the announcements made on 28 May 2012 regarding the Company's proposed Reduction of Capital and on 27 June 2012 in respect of the approval given by shareholders of the special resolution to approve the same, the Company announces that the requisite Court documents sanctioning the Reduction of Capital have been filed at Companies House following the Court's final hearing today. The Reduction of Capital of the Company is therefore hereby effective.

Terms used and not defined in this announcement bear the same meaning given to them in the circular dated 28 May 2012.

For further information please contact:

Stephen Yapp Tel: +44 (0) 20 8606 2000

Journey Group plc

info@journeygroup.plc.uk

Carl Fry Tel: +44 (0) 20 8606 2000

Journey Group plc

info@journeygroup.plc.uk

Singer Capital Markets Limited (Nomad & Broker) Tel: +44 (0) 20 3205 7500

Jonny Franklin-Adams

Matt Thomas