Fairpoint Group plc: Disposal of...

FairpointGroup PLC

('Fairpoint' or the 'Group')

Disposal of indirect subsidiary

FairpointGroup plc (in administration)('Group') announces that its indirect subsidiary, Simpson Millar LLP('SM LLP'), has sold the entire issued share capital of its wholly owned subsidiary, Simpson Millar Financial Services Limited ('SMFS') to Dune Financial Holdings Limited('Dune'). Dune is partly owned by James Mann, SMFS'smanaging directorand its sole legal director.

SMFS is an independent financial adviser, providing FCA registered pensions and investment advice, often to beneficiaries of personal injury and clinical negligence claims. As at 31 December 2016, SMFS had gross assets of £584,000.

The consideration will consist of an initial cash payment of £270,911together with deferred consideration payable, subject to certain conditions,in cash annuallyover a five year periodand subject to a maximum payment of £250,000.

The disposal will enable SM LLP to focus on the provision of legal services and the proceeds of the sale will provide capital to be applied in the development and managementof SM LLP.

The administrators of Group, having no nominated advisor to consult, have formed the view that the terms of the transaction are fair and reasonableas far as Group's shareholders are concerned.

For enquiries please contact

RSM Restructuring Advisory LLP

Gemma Moorhouse [e-mail]

0113 285 5000