27 Apr 2005

Board changes at Egg plc

As outlined in its first quarter results announcement to the Stock Exchange this morning, Egg plc (“Egg”) announced that, following its withdrawal from the French market and subsequent refocus on its core UK business, it is undertaking a cost restructuring exercise.

This restructuring, which will deliver annual savings of £12 million, will see changes to the Board structure and to the responsibilities of Egg’s Executive directors, with some senior management roles being made redundant. The changes following this restructure are as follows:

Executive Directors

At the company’s AGM on 16th May 2005, David Doyle, Egg’s current Chief Financial Officer will be leaving the company. David joined Egg as CFO in October 2003. In addition to his core finance accountabilities David has chaired Egg’s risk committees, and has directed Egg’s conversion to International Accounting Standards. David also played a key role in preparing the company for sale during the process initiated by Prudential in February 2004 and, more recently, has been driving action to refocus the company on its core UK business.

Egg’s two remaining Executive Board directors are Paul Gratton and Mark Nancarrow. Following the restructure, CEO Paul Gratton will take responsibility for the Risk, Audit and Legal functions, as well as the overall strategy of the Group. Mark Nancarrow, currently Egg’s Chief Operating Officer, becomes Chief Financial Officer and will be responsible for Finance, Treasury and Operations.

As previously announced, Executive Vice Chairman Mike Harris will step down from the Egg Board following the company’s next AGM. Mike will continue to provide strategic advice to Egg’s Executive Committee up until he retires from the company at the end of January 2006. These changes means that Egg will, in effect, have halved its number of Executive Board members.

Commenting on Egg’s restructuring exercise, Paul Gratton, Egg’s CEO commented:

“We have been exercising strong control over our costs. This restructure aligns our senior management more closely with our strategy which is now fully focused on the core UK business.

“We will be sad to see David leave Egg, but we extend to him our thanks for his contribution to Egg and wish him well in the future.”

David Doyle added:

“Egg is an exciting and dynamic financial services brand with a genuine focus on its customers. With the company now re-focused on its profitable UK business, I am looking forward to new and broader challenges. I wish Egg every success in the future.”

Non-Executive Directors

Jonathan Bloomer, who steps down from the Prudential plc Board on 5th May, will also retire from the Egg Board with effect from 5th May 2005. Prudential plc has indicated its intention to appoint its Group Finance Director, Philip Broadley, as a replacement Non-Executive Director. His appointment is subject to regulatory approval and requirements. Philip Broadley became Group Finance Director of Prudential plc in May 2000 and has wide-ranging experience with some of Europe's leading financial institutions and has particular expertise in regulatory issues.

Egg today also announces that Company Secretary and Group Chief Legal Officer Marcus Ezekiel will also leave Egg following the company’s AGM on 16th May 2005. Following Marcus’ departure Sue Windridge, currently Egg’s Deputy Company Secretary, will assume the role and responsibilities of Company Secretary.

Ends

For further information:

Notes to Editors:

Egg:

1. Egg plc is the world’s largest pure online bank, providing financial services products through its internet site and other channels.
Egg floated on 12 June 2000 and is listed on the London Stock Exchange. Prudential plc holds 78% of the share capital.

Mark Nancarrow:

1. Mark Nancarrow is 44 and holds a Degree in Law and Accountancy from Cardiff University.
2. Prior to joining Egg, Mark worked with (the then) Midland Bank for 10 years in a variety of roles, including running its UK credit card business.
3. A qualified accountant, Mark held finance positions at Unilever and Shell earlier in his career.

Philip Broadley:

1. Philip Broadley is 44 and read Philosophy, Politics and Economics at St Edmund Hall, Oxford
2. Prior to this, he was a partner at Arthur Andersen where he had been Chief Operating Officer of the UK Financial Services Industry assurance practice with responsibility for audit and risk consulting services to the firm's insurance and banking clients.

David Doyle:

1. David Doyle is 39 years old and qualified as an accountant with Arthur Andersen in 1987.
2. David is a Fellow of the Institute of Chartered Accountants in Australia and holds a Bachelor of Business Degree from the Royal Melbourne Institute of Technology.

Egg new Board* will consist of:

*Subject to regulatory approval and requirements