Disposal

    Immediate Release: 25 October 2004

                     Financial Development Corporation plc                     

                           ("FDC" or the "Company")                            

                Disposal of Subsidiaries and Directorate Change                

The Company has today entered into and completed an unconditional share sale
agreement for the sale (the "Disposal") by the Company of the entire issued
share capitals of each of Hansard Group Limited, Hansard Corporate Limited and
Hansard Communications.com Limited, each of which is a wholly-owned subsidiary
of the Company (together, the "Subsidiaries"). The purchaser is Boldwood
Limited ("Purchaser"), a company which is majority owned by Mr Adam Reynolds
and Mr Paul Foulger, both of whom are executive Directors of FDC.

In addition Mr Reynolds, Chief Executive, and Mr Tony Caplin, Chairman, have
resigned as Directors of the Company with effect from completion of the
Disposal. Mr Gordon Hall will, with immediate effect, take over the role of
Chairman of the Company.

The Subsidiaries together carry on the entire operational business of the
Company and its subsidiaries (together the "Group"), being the provision of
financial public relations and other public relations services to clients.
Following completion of the Disposal, the Company will have no operational
business and the principal assets of the Company will consist of cash deposits
and certain investments in listed and unlisted securities.

The audited profit before taxation for the Group for the year ended 29th
February 2004 was �140,000 and the unaudited profit before taxation for the
Group for the six-month period ended 31 August 2004 was �160,000. The Directors
estimate that as at the date of this announcement the unaudited aggregate net
asset value of the Subsidiaries is a negative amount of approximately �632,000.

The consideration paid by the Purchaser pursuant to the Disposal was �75,000,
which was paid in cash on completion to the Company. The Purchaser has also as
a term of the Disposal on completion procured the repayment of �375,000 out of
the total amount of �789,693 of indebtedness owed as at the date of the
Disposal by certain of the Subsidiaries to the Company. Repayment of the
balance of that indebtedness was as a term of the Disposal waived at completion
by the Company.

Mr Hall, being the only Director who does not have any interest in the
Purchaser, considers, having been so advised by Daniel Stewart & Company plc,
the Company's Nominated Adviser, that the terms of the Disposal are fair and
reasonable insofar as the shareholders of the Company are concerned.

The Directors intend that the consideration for the Disposal should be held on
deposit at present.

Chairman, Gordon Hall, commented,

"After a period of consideration the Board has decided that it is in the
interests of the shareholders of FDC to dispose of these subsidiaries for cash,
thereby providing us with a very strong cash position from which to pursue any
future investment opportunities."

                                     -End-                                     

For further information please contact:

Paul Foulger

Financial Development Corporation Plc

Tel. 020 7245 1100





END

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