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Network Group Holdings plc Disposals.

Network Group Holdings plc Disposals.

As a consequence of the challenging trading conditions experienced in the first half of 2009, the Group has undertaken a review of all its trading operations and their potential future contributions to the business. As a result of this review, the Group has decided to sell its holdings in two subsidiaries, and is in negotiations to sell a third.

Two of the businesses being sold, Executive Network Legal Limited ("ENL") and Total Employment Limited ("TEL"), in which the Group has holdings of 51 per cent. and 87.5 per cent. respectively, have been sold to Jonathon D Smith, a director and shareholder of the NGH, for a total consideration of 2. The Group's results for the year to 30 November 2008 included turnover of 1,235,000 and losses of 102,000 in respect of these two companies, and these losses have increased during 2009. Simultaneously with the disposal of ENL and TEL, a subsidiary of Pertemps Investment Limited ("PIL"), a major shareholder in NGH and a member of the NGH Concert Party, has agreed to acquire at face value the debt due from ENL and TEL to the Group, resulting in a cash inflow to the Group of approximately 600,000.

The Group is in negotiations to sell the third subsidiary to its managing
director for approximately 35,000.

The disposal of ENL and TEL constitutes a related party transaction for the
purposes of Rule 13 of the AIM Rules for Companies. The directors of NGH, other than Jonathon D Smith, have consulted with Dowgate Capital Advisers Limited, being the Group's nominated adviser, and consider the terms of the disposals to be fair and reasonable in so far as the Group's shareholders are concerned.

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