In November 2008, Hertford announced the acquisition of Cheque Exchange Limited ("CEL") from Provident Financial Plc ("Provident Financial"). The acquisition, which completed in January this year, comprised both an immediate cash payment to Provident Financial and deferred consideration. A dispute has arisen between Provident Financial and the Company in respect of the payment of the deferred consideration and the two parties' rights under the acquisition contract.

In the meantime and until there is further clarification over this matter, given that CEL comprises a substantial part of Hertford's business and the financial impact (positive or negative) on the Company cannot be gauged, the Company has requested a temporary suspension of the trading of its ordinary shares on AIM.

The Directors are confident that this dispute can be resolved on a sensible commercial basis. A further announcement will be made within seven days.