Cavanagh Group plc

28 November 2007

Acquisition

Purchase of JRG Financial Consultancy

Cavanagh Group plc (“Cavanagh”), one of the leading Independent Financial Advisers today announces the acquisition of JRG Financial Consultancy (“JRG”, “Company”) for a consideration comprising cash of up to £4.25 million and 652,105 new ordinary shares of 1p each in Cavanagh (the “Consideration Shares”), giving a total consideration of up to £5.3 million based on the share price being £1.60 per share as at the close of business on 27^th November 2007.

The initial consideration for the acquisition comprises the Consideration Shares and £3.5 million in cash, funded by way of additional bank borrowing.  Further consideration of up to a maximum of £750,000 in cash will become payable after one year subject to certain profit targets being achieved.  The vendors have agreed not to dispose of the Consideration Shares for a period of three years, other than with the consent of the Company.

Application will be made to the London Stock Exchange for the consideration shares to be admitted to AIM as soon as practicable.

Based in Edinburgh, JRG was formed in1986 and now employs 36 people working from offices in Edinburgh, Jedburgh and Reigate.  Mr Gordon Sutherland has led the Company since 1988 and following the acquisition will be appointed a Director of Cavanagh Financial Management Limited.  The senior JRG management are all continuing with the business.

For the twelve months ended 31 December 2006, JRG achieved revenues of £4.3 million and profit before tax of £275,000 after directors bonuses, and at completion, the Company had cash balances of £900,000 as at 31^st October 2007.  Cavanagh expects the acquisition to be earnings enhancing in the first full year.*

Commenting on the acquisition, Andrew Fay, Chief Executive of Cavanagh said “Our corporate proposition has been developing and contributing well to the growth of the Group and the acquisition of a quality corporate IFA such as JRG significantly enhances our proposition and positions us as one of the leading financial advisers in the corporate market. We welcome the JRG team to Cavanagh and look forward to them playing a key and exciting role in our future growth”

*This statement does not constitute a profit forecast nor should it be interpreted to mean that future earnings per share of Cavanagh following the acquisition will necessarily match or exceed historical earnings per share of Cavanagh.

Enquiries: Cavanagh Group plc   01444 475400 Andrew Fay, Chief Executive

Brewin Dolphin Limited  0845 270 8610 Andrew Emmott