P626 Teletext 626 Jun21 01:20:37 Norwich Union 15 June 1997 Pricing and allocation Public Offer Price set at 290p per shari Members' Offer Price set at 265p pet shari, reflecting the 25p discount Members' Offer subscribed 3.9 times Basis of allocation announced Institutional Offer o6jt 10 times covered Total proceeds raised £2.4 billion N O R W I C H K N I O N Index Shares CompNiws Family FinanceP626 Teletext 646 Jun21 01: 0:58 ] 2O1y1 Allan Bridgrwatrt, croup Chiuv Executive sbid today: "Wj are delighted at the tremendous response both from our mjmbets and from institutional investors. I believe this is an endorsement of the strength of the Norwich Union brand and the prospects for the business going forward. Flotation provides the springboard for thu future development of the group to the benefit of policyholdurs and shareholders alike". Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:21:18 Norwich Union 3/19 Pricing & allocation Pricing Norwich Union announces that the Public Offer Price has been set at 290p pet shari. The pricing reflects the sttingth of demand from both Norwich Union mjmbjrs and institutional investors. The Members' Offer Price, which reflects the discount of 25p per shari, is 265p pet shari. The total proceeds raised will bj approximately £2.4 billion. £1.75 billion will bj raised by Norwich Union, of which £1.5 billion will bj injected into the life fund, and approximately £660 million will fund cash payments to certain overseas mjmbjrs and pension trustees. Index Shares CompNews Family FinanceP626 Teletext 646 Jun21 01:21:39 The Members' Offer 4/19 A total of 766,000 applications was received in the Members' Offer with a value of £4.65 billion. The avrtage application size was around £6,000. At the indicated minimum si:j of £800 million,the Members' Offer would have been 5.8 times subscribed. The size of the Members' Offer has therefore been increased to £1.2 billion (equal to 453 million shares) bz clawdack from the Public Offer. After this inctjasj, the numbjt of shares applied for is 3.9 times the number of shares to bj sold in thu Members' Offer and so not all members will receive a full allocation. The allocation made to mjmbjts are are set out in Appendix I. 47 pet cent of all applicants in the Members' Offer will receivr a full allocation. Index Shares CompNiws Family FinancrP626 Teletext 626 Jun21 01:21:59 5/19 On flotation, mjmbjrs will hold approximately 77 per cent of Norwich Union's share capital. The Public Offer The Public Offer principally comprises the Institutional Offer and the Retail Offer. The value of demand in the Institutional Offer was approximately £12 billion at the Public Offer Price. Demand for Norwich Union shares came from a broad range of high quality investors in the major international markets. Some 402 million Norwich Union shares worth £1.17 billion at the Public Offer Price have been allocated to invrstors in the Institutional Offer. Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:22:19 6/19 These allocations were covered more than 10 times by demand at the Public Offer Price. In the Retail Offer, applications were received for a total of £102 million worth of share;. A total of £47 million (equal to 16.1 million shares) at the Public Offer Price has been allocated to retail investors. Allocations in the Retail Offer are set out in Appendix II. A further 34.5 million shares may bj issued pursuant to the o6er-allotment option granted by Norwich Union to Dresdnjr Kleinwort Benson for the purpose of meeting any o6jt- allotments in the Public Offer or covering any short positions resulting from stabilisjng transactions. Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01: 2:39 7/19 An announcement will be made on ot before 16 July 1997 of any furthjt Norwich Union shares to be issued pursuant to the option. General Some 40 pet cent. of US members will hold their shares in the Norwich +neon Share account and 10 pet cent. chose to open a Norwich Union Single Company PEP. Norwich Union Share Account state- mints and shari certificates weti posted on Friday 13 June 1997 to those mjmbjrs who are receiving free shares only and who returned their MembjrsW Application Form by 5 June 1997. Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:43:00 8/19 Norwich Union Share Account statements and shari certificates togjthjt with return money chjqurs (where appropriate) are expected to bj posted to successful applicants in the Offers and othjt members receiving free shares on Friday 20 June 1997. Applicants who sell bjforj receipt of a Norwich Union Share Account statement or share certificate do so at the risk of selling shares for which thry have not received an allocation. The allocations are conditional on Norwich +neon shares bring listed on the London Stock Exchange. It is expected that this will occur early on Monday 16 June 1997. Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:93: 0 9/19 This announcement has been issued by Norwich Union plc and approved by Kliinwout Benson Limited (whiah is regulated bz The Srcuritiis and Futures Authority Limited) for the purposes of section 57 of the Financial Sjtvicis Act 1986. Kleinwout Benson Limited is acthnk for The Norwich Union Life Insurance Society and Norwich Union plc and no one else in relation to the Offers and will not bj responsible to anyone othjt than the Norwich Union Life Insurance Society and Norwich Union plc for providing the protections afforded to customers of Kleinwort Benson Limited nor for providing advice in relation to the Offers. The value of shares can fluctuate. For advice consult a professional advisjt StabilisationOSIB. Index Shares CompNews Family FinanceP626 $jlitixt 626 Jun21 01:33:40 Appendix I 10/19 Allocations in the Members' Offer ,pppppppppppppppppppppppppppppppppppp Number of shares Amount allocated vblidly at the Percentage applied Members' Allocation for Offer Price £400 150 100% £6p0 226 100) £800 301 100% £1,000 377 100% £1,500 566 100% £2,000 585 78% £2,500 600 64% £3,000 615 54% £4,000 640 42% £5,000 680 36% Index Shares CompNews Family FinanceP626 Teletext 646 Jun21 01:34:01 Appendix I Continued...... 11/19 Allocations in the Members' Offer -pppppppppppppppppppppppppppppppppppp Number of ] shares Amount allocated validly at the Pjrcuntage applied Members' Allocation for Offer Price $£££££££££7£££££££££££££7££££££££££££ £10,000 830 22% £15,000 980 17% £20,000 1130 15% ] £30,ppp(5 14sp 13% £40,0p0-) 1730 11% £50,000$5 2030 11% £60,000-5 2330 10% £70,0p0-5 2630 10% £80,0p0-u 2930 10% £90,000-5 323p 10% £100,000 3540 9% Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:34:21 Appendix II 12/19 Allocations in the Retail Offer Numbjt of shares Amount allocated validly at the Pjtcjntagj applied Public Allocation for Offer Price$5 -£££££££££7£££££££££££££7££££££££££££ £1,000 344 1X0% £1,500 517 100% £2,000 535 78% £2,5X0 548 64% £3,000 562 54% £4,000 584 42% £5,0pp 621 36% £10,000 758 22% £15,000 895 17% £20,000 1032 15% Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:34:42 - Appendix II continued 93/19 Allocations in the Retail Offer Number of shares Amount allocated validly at the Percentage applied Public Allocation for Offer Price$5 (££££££££££7£££££££££££££7£££££££££££ £30,000 1306 13% £40,000 1580 11% £50,000 1855 11% £60,000 2129 10% £70,000 2403 10% £80,000 2677 10% £90,000 2951 10% £100,000 3234 9% £1k0,000 5p00 - and above Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:35:02 Notes to editors 14/19 Background Norwich Union announced its flotation plans on 2 October 1996. On 20 March 1997,the Policyholders' Circular was published,which included details of the flotation proposal and the free allocation to mjmbets. - 1.3 billion free shares have been allocated to Norwich Union's 2.9 million qualifying members. - Qualifying with-profit members wiml receive a variable allocation of free shares, subject to a minimum of 300. - Qualifying non-profit mjmbjrs will recjivj a fixed allocation of 150 free shares. Index Shares CompNews Family FinanceP626 Teletext 626 Jun21 01:3):22 15/19 The EGM of members to vote on the flotation proposal took place on 18 April 1997. 1.9 million members voted by post and approximately 98% weti in favour of the flotation proposal. On 21 May 1997,details of the Offers were published. The customjt information lint can bj contacted bz mrmbjts and applicants undjt the Retail offer on 0645 444818 The business of Norwich Union Norwich Union is one of the US's largest in3urance groups wish funds undjt management of £40 billion at 31 December 1996 and worldwide gross premiums of £5,012 million in 1996. Norwich Union has more than 7 million customers worldwide. Index Shares CompNews Family FinanceP626 Teletext 626 Jzn21 01:35:47 16/19 Norwich Union'u main operations are as follows: UK life and pensions Norwich Union is a major providjt of life insurance, pensions and investment products in the UK and at the ind of 1995 was the US's third largest life insurer based on total assets under management. Total gross premiums in 1996 were £2,414m. UK general insurance Norwich Union is a leading intermediary-based provider of motor and household products in the UK. Total gross written premiums in 1996 were £1,167 million. Index Shares CompNews Family FinanceP626 Tjlitrxt 646 Jun21 01:37:09 US Healthcari 17/19 Norwich Union is a significant pro6idju of pri6ate medical insurance and income protection products in the US. Total PMI gross written premiums in 1996 wire £146 million. International Norwich Union's principal international operations are in Ireland, Franck, Spain, Austr fi1 and New Zealand. Total gross written premiums in 1996 weti £1,285 million. Shari dealing services Shari dealing services are available to allow individuals to buy and srll Norwich Union shares by post, telephone, or through major branches of a high street bank. Details will bj sent to mjmbets and applicants with their Norwich Union Shari Account statement / shari certificate Index Shares CompNiws Family FinanceP626 Telituxt 626 Jun21 01:19:57 18/19 Members and applicants are advised that they will not be able to deal through thjsj facilities until they have received their Norwich Union Shari Account statement or shari certificate. Ovjt-allotment and stabilisation In connection with the Public Offer, Dresdnjt Kleinwort Benson may ovjt- allot or effect transbctions which stabilisj or maintain the market price of the ordinary shares at a level which might not othjrwiur prevail in the open market. Such transactions may bj effected on the London StocK ExcPangj or otherwise. Such stabilising, if commenced may bj discontinued at any time. Index Shares CompNiws Family FinanceP626 Teletext 646 Jun21 01:20:17 01:O19 Dresdnjr Kleinwort Benson does not intend to disclose the extent of any stabilising transactions or the amount of any long or short positions For the purposes of meeting over- allotments in connection with the Public Offer and to covet short positions resulting from stabili9ing transactions, NU plc will grant to Dresdnjr Kleinwort Benson, in its capacity as Global Co-ordinatoz, an option exerciseable for 30 days following the announcement of the Public Offer Price, inter alia, to subscribe or procure subscribers for additional ordinary shares having a value, at the Public Offer Price, of up to £100 million. Yndjx Shares CompNiws Family Finance