Update on proposed transaction

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Standard Life Aberdeen plc

Phoenix Group Holdings

Update on proposed transaction

Standard Life Aberdeen plc ("Standard Life Aberdeen") and Phoenix Group Holdings ("Phoenix") are providing an update regarding the proposed sale of Standard Life Aberdeen's UK and European insurance business ("Standard Life Assurance") to Phoenix (the "proposed transaction"). As previously announced, the proposed transaction is expected to complete in the third quarter of 2018.

Phoenix and Standard Life Aberdeen are actively progressing with the separation and integration planning for the proposed transaction. As part of this process, Standard Life Aberdeen continues to engage with its UK regulators in relation to the future prudential supervision of the group. Standard Life Aberdeen is also considering the potential for a substantial return of capital to shareholders following completion.

Phoenix has made good progress with the financing for the proposed transaction, having issued its inaugural Restricted Tier I bond on 26 April 2018, and continues to engage with its regulators.

It is expected that the general meetings for each of Standard Life Aberdeen and Phoenix shareholders to approve the transaction will be held contemporaneously. It is expected that the parties' respective circulars and the Phoenix prospectus will be published shortly after 29 May 2018, which is the date of Standard Life Aberdeen's annual general meeting. The general meetings of Standard Life Aberdeen and Phoenix to approve the proposed transaction will take place as soon as practicable thereafter, in line with conventional notice periods.

3 May 2018

Contacts:

Media Enquiries

Katy Hetherington, PR Manager, +44 (0) 131 245 2283*

Standard Life Aberdeen +44 (0) 7841 344 374

Investor Enquiries

Jakub Rosochowski, Investor Relations Director, +44 (0) 131 245 8028*

Standard Life Aberdeen +44 (0) 7515 298 608

Neil Longair, Investor Relations Manager, +44 (0) 131 245 6466*

Standard Life Aberdeen +44 (0) 7711 357 595

* Calls may be monitored and/or recorded to protect both you and us and help with our training. Call charges will vary.

Standard Life Aberdeen plc LEI: OTMBS544NMO7GLCE7H90

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State