News

Acquisition Update - COBRA Completes Four Acquisitions - The Board of COBRA Holdings plc, a major UK-based retail and wholesale insurance broking group, is pleased to announce that it has acquired four businesses comprising of three insurance broking entities, Giles (Alton) Ltd ('Giles'), J.K. Lee Limited ('JKL'), G.D.K Insurance Services Limited ('GDK') and an underwriting agency, County Insurance Services Schemes ('CISS'). Giles is based in Hampshire, JKL is based in Manchester and GKD and CISS, which trade alongside each other, are based in Essex.

COBRA Holdings Plc - News Announcement

Cobra Holdings PLC - Completes Four Acquisitions
RNS Number:6015R
Cobra Holdings PLC
04 April 2008

Date:                    4 April 2008
On behalf of: COBRA Holdings PLC ('COBRA' or the 'Group')
Embargoed until:         0700hrs

COBRA Holdings PLC
Acquisition of three insurance brokers and an underwriting agency

The Board of COBRA Holdings plc, a major UK-based retail and wholesale insurance broking group, is pleased to announce that it has acquired four businesses comprising of three insurance broking entities, Giles (Alton) Ltd ('Giles'),
J.K. Lee Limited ('JKL'), G.D.K Insurance Services Limited ('GDK') and an underwriting agency, County Insurance Services Schemes ('CISS'). Giles is based
in Hampshire, JKL is based in Manchester and GDK and CISS, which trade alongside each other, are based in Essex.

COBRA's 'hub and spoke' growth strategy involves the establishment of substantial regional offices ('hubs') with smaller local offices ('spokes').
All of the acquisitions completed today will become spoke offices within the COBRA Group.

All three broking operations benefit from a client base predominantly made up of commercial customers, which as members of the COBRA Group, will be able to offer
their customers additional insurance services and access to a wider range of underwriters than they could as independent businesses. As a result of the aggregation of its premiums with those of COBRA and its Network, COBRA expects to generate higher commission levels and improved profitability from the acquired businesses at no cost to their customers.

Giles, whose last audited accounts were prepared for the year ended 30 April 2007, generated pre tax profits of £216,554 for that year and had net assets at
that date of £1,065,768.  The consideration payable comprises an initial cash payment of £1,000,000, and deferred cash payments of £1,950,000 in late April
2008, £180,000 in January 2009 and £670,000 in April 2009. In addition 166,667 new COBRA shares are to be allotted in late April 2008. Based on the closing
price of a COBRA share on 3 April 2008 of 88.5p, the aggregate consideration amounts to £3,947,500.

J.K. Lee Limited, whose last audited accounts were prepared for the year to 31 October 2006, generated pre tax profits of £162,954 for that year and had net
assets at that date of £125,156.  The consideration payable comprises of an initial cash payment of £722,500, the allotment of 204,000 new COBRA shares,  a
first deferred cash payment of £361,250 in July 2009 and a final deferred cash payment in July 2010 of between £361,250 and £511,250 depending on performance.
There will also be two equal deferred cash payments of approximately £75,000 in October 2008 and July 2009.  Based on the closing price of a COBRA share on 2
April 2008 of 88.5p, the aggregate maximum consideration amounts to £1,925,540.

CISS is a partnership, whose partners also trade through G.D.K. The acquisition of CISS will include the agency's group of independent insurance firms providing
COBRA with a range of new marketing and sales opportunities to attract more members to the wider COBRA Network and COBRA London Markets.

COBRA has acquired the business and assets of both G.D.K. and CISS.  The most recent accounts of CISS, which have not been audited, were prepared for the year
ended 30 April 2007 and showed a net profit before tax for that year of £288,818 and net assets at that date of £142,081. The most recent accounts of G.D.K.,
which have not been audited, were prepared for the year ended 30 November 2007 and showed a net loss before tax for that year of £22,790 (2006: audited loss
£1,909) and net assets at that date of £127,988 (2006: audited £150,777). The combined consideration payable comprises of an initial cash payment of
£1,000,000, a deferred cash payment of £1,295,000 in April 2008 and between £645,000 and £1,425,000 in July 2009, depending on performance.  In addition,
360,000 new COBRA shares are to be allotted in late April 2008. Based on the closing price of a COBRA share on 2 April 2008 of 88.5p, the aggregate maximum
consideration amounts to £4,038,600.

The contracts for all the above acquisitions contained warranties and indemnities in favour of the purchaser and non-competition covenants by the vendors.  All the new COBRA shares issued and to be issued to vendors as
consideration are, or will be, subject to lock-in agreements for a period of 15 months during which the shares may only be sold in certain specific
circumstances.

Application has been made to the London Stock Exchange plc for the admission of the 204,000 new COBRA shares allotted yesterday. The initial cash consideration
will be partly financed out of the £1.615m proceeds of the placing of 1,665,206 new COBRA shares at a price of 97p per COBRA share which was announced on 28 March 2008.

Following the issue of 204,000 new COBRA shares, there are 39,688,119 COBRA shares in issue.

Steve Burrows, Chief Executive of the COBRA Group, said:

'These acquisitions demonstrate COBRA's commitment to taking advantage of the opportunities for consolidation in the insurance broking market, in particular in the provincial markets.  These businesses introduce new revenue streams and opportunities to the Group. We look forward to leveraging these opportunities to provide a broader range of products and improved services to customers and
Network members.'

Enquiries:

COBRA Holdings Limited

020 7204 8852
Steve Burrows, Chief Executive

Fairfax I.S. PLC

020 7598 5368
Paul Richards / Ewan Leggat

Redleaf Communications  

020 7822 0200
Emma Kane / Samantha Robbins / Adam Leviton              Email: sr@redleafpr.com

Dawnay, Day Corporate Finance Ltd   

020 7509 4570
David Floyd / Paul Cocker

Notes to Editors

About COBRA Holdings PLC

The Group was formed in 2006 through the amalgamation of six separate companies
under a single parent company, COBRA Holdings PLC, creating a business capable
of providing a wide range of services in five distinct areas of the insurance
market.

It has one of the fastest growing UK networks, with in excess of 125 independent
insurance brokers.  In addition, it offers retail insurance, wholesale Lloyds
facilities, underwriting capacity and financial services.  The Group has
expanded rapidly over the last year due to both organic and acquisition growth.