13 Jul 2004

Statement regarding Egg France

Prudential plc notes and supports Egg's announcement today that it is taking the necessary steps to withdraw from the French market.

Prudential remains in discussions regarding a possible transaction with respect to its approximately 79 per cent shareholding in Egg. A further announcement with respect to the conclusion of this transaction will be made, as appropriate, in due course.

- ENDS -

Enquiries to:

Media Investors/ Analysts
Geraldine Davies Tel: 020 7548 3911 Rebecca Burrows Tel: 020 7548 3537
Mob: 07718 637 264
Clare Staley Tel: 020 7548 3719 Marina Lee-Steere Tel: 020 7548 3511

Notes to Editors:

On 22 October 2003 Egg announced that the execution of its French business plan would take longer and require a greater level of investment than Egg was prepared to undertake on a standalone basis. At that time, Egg considered forming an alliance with a strategic partner and, to that end, entered into negotiations, which might have led to a joint venture. These conversations led to other options being presented by various parties and as a result, Prudential announced on 14 January 2004 that it was in preliminary discussions regarding a possible transaction with respect to its 79 per cent shareholding in Egg. On 26 January Prudential announced that while discussions were continuing, it had received unsolicited indications of interest from a number of parties, which may or may not have led to a transaction.

As stated in its separate announcement, Egg expects the cost of closing Egg France to be approximately €170 million (£113 million).

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