Jardine Lloyd Thompson Group plc - Sale Of US Businesses

Hamilton, Bermuda: September 11 2006 -- Jardine Lloyd Thompson Group plc (JLT) today announces that it has reached agreement with Alliant Insurance Services, Inc. for the sale of its US based Propertyb and Casualty Insurance and Employee Benefits businesses.

Dominic Burke, CEO of JLT said: "The sale of the retail part of our US based operations is an important step forward in implementing the results of the operational review that we initiated earlier this year. The disposal is consistent with JLT's strategy of concentrating on areas of proven business strength."

Tom Corbett, CEO of Alliant Insurance said: "The JLT US retail operations are quite specialised and truly complement our existing business. This acquisition increases not only our geographic span but more importantly, enhances our position as the premier specialty broker in the US."

The consideration is US$100m (£53.2m) including US$5m (£2.7m) of deferred consideration payable by instalments at the end of 2008 and 2009, subject to the profitability of the businesses being sold. The net consideration on completion after transaction costs, including retention bonuses, is approximately US$85m (£45.2m), payable in cash. The proceeds will be used to further enhance the Group's financial position including debt reduction. The loss on sale before tax will be approximately £16.5m, subject to completion adjustments. This loss includes the write off of goodwill and transaction costs and will be treated as an exceptional item.

JLT will continue to operate specialist US-based aviation and wind power insurance businesses and reinsurance operations and will build on its position as a leading provider of access to the London and Bermudian insurance markets for US brokers and their clients.

It is expected that the sale, which is subject to a number of conditions including regulatory approval, will be completed before 31st October 2006.