AGM Statement

Mercia Asset Management PLC

("Mercia", the "Company" or the "Group")

AGM Statement

Mercia Asset Management PLC (AIM: MERC), the regionally focused, private capital asset manager with c.£2.2billion of assets under management, is holding its Annual General Meeting at 10.00am today. The Non-executive Chair, Ian Metcalfe, will make the following remarks at the meeting:

"Mercia has made a positive start to the current financial year across its many venture capital, development capital and property finance fund mandates. As a result of its continued significant funds liquidity and wide-ranging deal flow networks, the Group remains well placed to continue to deploy capital across its fund portfolios, by adding new investments and supporting existing portfolio companies.

"The Group also remains well positioned to continue executing its strategy of growing funds under management, both organically and by acquisition, combined with the resultant economies of scale, to drive future financial performance, and, as a result, deliver increasing returns to shareholders.

"In this respect, I am pleased to announce that Mercia has just been appointed to manage a new equity mandate under the British Business Bank's £140.0million East of England Investment Fund, with an initial £63.0million of new funds under management.

"We have drawn £16.0million of our new £38.0million bank facilities and our gross cash balance is currently a robust c.£37million. Overall, the direct investment portfolio continues to make good technical and commercial progress and conversations with third parties are being held in respect of the potential divestiture of the direct investment portfolio.

"We are optimistic about continuing profitable growth in the second half of the financial year."