Press Release

19 March 2008

LAUNCH OF ROCK SHAREHOLDERS’ COMPENSATION CAMPAIGN

The Northern Rock shareholders’ action group (NRSAG), organised by the UK Shareholders Association (UKSA), today announced the first steps in the legal action to be taken in an effort to obtain fair recompense for shareholders, following the compulsory purchase of their shares by the Government. The UKSA also launched its campaign to raise funds to cover the legal and administrative costs of the action.

UKSA Chairman, Roger Lawson, stressed that the main objective was: “to get a fair and independent valuation for shareholders,” and claimed that the Government had “rigged” the compensation terms by stipulating unfair terms of reference for the independent valuation, including specifying that the company was unable to continue as a going concern and that it was in administration.

“These assumptions clearly did not apply,” stated Mr Lawson. “The Government was involved in the problems of Northern Rock. It is and was a going concern and was never in administration as suggested by the Government’s terms of valuation”.

The NRSAG considers that a fair valuation would be substantially higher than the 5 pence per share which recent press reports have suggested.

David Greene, head of litigation at Edwin Coe, who is acting for the shareholders, explained that the basis of the legal challenge was that shareholders’ human rights have been violated under the Human Rights Act 1998 and the European Convention on Human Rights.

The NRSAG have issued to the Treasury a letter before action. The Government has 21 days to respond. If settlement is not achieved, the Group will make an application to the Court. The proceedings could take up to 18 months to complete.

“All shareholders need to unite behind the Judicial Review,” urged David Greene. It is estimated that there are over 150,000 private individuals who have been affected by this matter and the UKSA is asking everyone who was a shareholder in Northern Rock to register their interest in this legal challenge and contribute a minimum of £25.

For more information, shareholders should contact or telephone: 0870 70 60 600.

ENDS

For further information, please contact:

David Greene
t: +44 (0)20 7691 4000
e:

Edwin Coe was founded in 1913 and is ranked as a UK 200 law firm. It provides a full range of commercial legal services to a diverse range of clients both in the UK and overseas. Clients include public and private companies, multinationals, sovereign states, charities and unincorporated associations, and a significant number of private clients. Edwin Coe is ranked in Chambers as a leading mid-market litigation firm, and in the Legal 500 for its commercial property and insurance litigation work. The firm also has substantial corporate, employment, insolvency and private client teams.

Edwin Coe LLP, 2 Stone Buildings, Lincoln’s Inn, London WC2A 3TH Tel: 020 7691 4000 www.edwincoe.com