Below is an announcement made in the press on 10 June outlining that Ernst & Young Trust Company (Jersey) Limited is in discussion with Kleinwort Benson Channel Islands with a view to merging their respective businesses - Ernst & Young Trust Company (Jersey) Limited will then become part of the Kleinwort Benson Channel Islands group.

David Waters, Managing Director of the Trust Company quoted "We will retain preferred supplier status from Ernst & Young International who are entirely supportive of this move. We believe it will be business as usual. I and all my fellow directors will be remaining with the company and I will give further information to all our clients once any agreement is made".


London, 10 June 1999.

Ernst & Young Trust Company (Jersey) Limited (EYTCJ) announced today that it has reached agreement in principle to join Kleinwort Benson Channel Islands Group (KBCI), a subsidiary of Dresdner Bank AG. It is expected that the legal agreements for the transaction will be completed by the middle of July. EYTCJ will remain a full member of Ernst & Young International, the global professional services organisation, until the transfer to KBCI has been completed. At that time the new name of the trust company will be announced.

"In joining KBCI, we have an opportunity to leverage the natural synergies that exist with an organisation that conducts business that is more closely aligned with ours", said David Waters, the managing director of the EYTCJ. "That's important for our future growth".

Richard Robins, chief executive of KBCI states, "We're delighted by the opportunity to include EYTCJ under the umbrella of our worldwide organisation. They bring to us their tremendous experience in the trust business, as well as excellent relationships with some of the most prestigious global companies in the world".

The international organisation of Ernst & Young will work closely with the EYTCJ to ensure the seamless delivery of service to clients throughout the world during the transition. Ernst & Young and EYTCJ will continue to recommend each other as preferred suppliers of respective services and where appropriate will continue to work together on existing and future clients. Ernst & Young will continue to provide audit, tax and related services in Jersey.

EYTCJ employs 260 people and is one of the largest trust companies in Jersey. Its core activity is the provision of trustee services for the benefit of high net worth clients. It provides global solutions to the financial challenges of both individual and corporate clients around the world.

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