Shareholder mailings

11 March 2008

Dear Shareholder

Annual Report & Accounts

Our full Annual Report and Accounts for 2007 has now been published and you can view it from the Reports page.

At the homepage, please click on the highlighted link to access the 2007 Annual Report and Accounts. Most computers will already have the necessary software required to access the Annual Report but if you do not, the software is described and is available on our website.

You can choose to receive future notifications of shareholder documentation (including future reports and notices of meetings) by email. To do this go to www.shareview.co.uk¹ and click on the link for paper-free communications.

Dividend Tax Vouchers

I would like to tell you about an important change regarding your dividend tax vouchers. Currently we send you a tax voucher each time we pay a dividend directly into your bank or building society account. From now on we will issue a single tax voucher in September each year which will provide details of both the final and interim dividend paid to you usually in April and September respectively.

This will provide you with a single consolidated statement of the dividends that you have received during the financial year: making it easier for you to complete your tax return; reducing the impact on the environment; and reducing our administrative costs. This new practice will not alter the payment of any dividends declared by the Company or when such dividends are paid.

Dividend tax vouchers will also be available electronically on www.shareview.co.uk to those shareholders who have both their dividends mandated to their bank/building society accounts and who have expressed a preference for e-communications.

If you do need a tax voucher with each dividend, you may elect to obtain future tax vouchers online by registering at www.shareview.co.uk. To continue to receive paper tax vouchers, you should contact the Registrars on 0800 169 1199.

Dividend Cheques

If your dividends are still paid by cheque, I strongly recommend that you arrange for future dividends to be paid directly to your bank or building society account. This will help reduce the risk of fraud and will provide you with immediate access to your funds without the inconvenience of waiting for a postal delivery or having to visit your bank.

Each year the Company's Registrar, Equiniti, re-issues a sizeable number of cheques to shareholders who have lost their dividend cheques, or not cashed the original cheque which is now out of date, or who have moved address without advising the Registrar of the change and so have not received their original dividend cheque. In order to partially offset the cost of re-issuing cheques, Equiniti is introducing a charge if you need a replacement cheque. For all replacement cheques of £30 and more, the charge will be £10 plus VAT. There will be no charge for replacement cheques of less than £30. Please note that no fee will be levied for dividend cheques re-issued within one month of the original cheque issue, to allow for cheques going astray in the post. I would stress that this charge is being levied by our Registrar and not by Schroders.

I would again urge you to consider having your dividends paid directly into your bank account if you have not already taken advantage of this facility. This will ensure that you are never charged for a replacement cheque.

Yours faithfully

Graham Staples
Company Secretary
Enc.

¹ If you would prefer to receive future shareholder documentation in hard copy, please write to the Company's Registrar, Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA.