News Release

22 March 2007

Friends Provident International Records
Strong Growth Of Sales In 2006

Friends Provident International (FPI) is a leading UK life and pensions company and international cross-border player. The recent announcement of the Group's 2006 interim results showed that Friends Provident International sales reached ￡823m (PVNBP)*, up 16% on 2005. Total international new business increased by 32% and now represents about 40% of Friends Provident's total sales in life and pensions. The Hong Kong operations generated a 25% increase in new business over the same period in 2005, from ￡40.8m (APE)** to ￡51m (APE)**.

"Friends Provident is a strong, well-balanced international financial services group which is celebrating its 175th year in business this year," says David Knights, Regional Sales Director, Asia for Friends Provident International. "Friends Provident International is a core component of the Group's International Life & Pensions business segment. Asia remains Friends Provident International's largest contributor of new business volumes, accounting for 45% of its new business, with the bulk of that coming from regular premium savings. The fact that our Hong Kong operation has been in existence for nearly 20 years proves that we are firmly committed to the local marketplace."

This strong performance is mainly attributed to Friends Provident International's proven strategy of working with independent financial advisers (IFAs). "Working with independent financial advisers is at the heart of what we do and what differentiates us from many other companies. We are also partnering with prestigious fund groups to deliver a wide range of financial solutions suitable for local markets and consumers," adds Knights.

Friends Provident International is well known throughout the industry for creating innovative products and services that meet the needs of a broad range of customers, ranging from family and business protection to retirement planning and wealth management.

In addition, Friends Provident International also provides a range of funds that is suitable for almost any investment philosophy or risk profile. Friends Provident International offers access to more than 170 best-in-class funds from 30 of the world's top managers, including Fidelity, JP Morgan, Merrill Lynch and Principal.

More importantly, Friends Provident International has strong offshore capabilities with operations based on the Isle of Man and in the U.K. Through Friends Provident International's offshore policies, investors can enjoy the benefits of tax freedom and offshore policyholder protection.

"The fact that we routinely exceed customer expectations has been a significant reason for our global success. Many companies talk about good service, but Friends Provident International delivers it," pinpoints Knights. "Looking forward, we aim at increasing our online capabilities in order to deliver real benefits for customers and setting the standard by which all life companies are judged."

*PVNBP = Present Value of New Business Premiums
**APE = Annualized Premium Equivalent

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About Friends Provident:

Friends Provident Life and Pensions Limited is a leading UK life and pensions provider with more than 2.5 million customers. It is part of Friends Provident plc, which is a FTSE 100 company comprising of three core business areas: UK life and pensions, international life and pensions and asset management. The Friends Provident Group has strong financial ratings: Standard & Poor's rating of A+ and Moody's rating of A1.

The business was founded in 1832 on Quaker principles and aimed to alleviate the hardship of families facing misfortune. These principles still drive the Group today. Friends Provident has embraced corporate governance and achieving high standards of corporate behaviour and accountability to both stakeholders and customers is at the heart of its business.

About Friends Provident International

The international component of Friends Provident's business is made up of Friends Provident International and Lombard International. The International Life and Pensions business operates throughout Europe, Asia, and the Middle East, and incorporates the Luxemburg based company Lombard International. For further information on Friends Provident International please visit www.fpinternational.com.hk

Copyright© 2007 Friends Provident International. All rights reserved.