Statement re Review of Capital Allocation Policy

Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance group which specialises in insurance premium finance and the professions funding market, provides the following update on the Review having engaged with its key institutional shareholders.

The Board is currently of the view that the benefits of maintaining the Company's admission to AIM ("Admission") are outweighed by the following factors:

• the legal and regulatory requirements and associated costs of Admission;
• the Company's inability to attract sufficient interest from institutional and other investors, in light of the material discount of the current market price of its shares to Net Asset Value; and
• the low levels of liquidity in trading of the Company's ordinary shares.

The Board believes it is in the Company's best interests to cease payment of dividends for the current financial year.

The capital retained can be used to make, if appropriate, an acceptable tender offer to shareholders in the future and will be for the benefit of the business enabling management the strategic flexibility, when appropriate, to deploy funds to support the lending of the business.