Meriden Group PLC
24 March 2006


                               Meriden Group plc

                          ("Meriden" or "the Company")

       Response to the Chancellors Budget and change in government policy

As announced in the Chancellors budget statement yesterday, the decision was
made to implement a change in the Governments policy and remove the benefits
under tax efficient payroll based deferred computer purchase agreements commonly
known as the Home Computer Initiative ("HCI") schemes from 6th April 2006.

Meriden would like to respond by stating that it is clearly disappointed and
surprised by this sudden change in policy and would urge the Government to
reconsider the change. As previously announced the Company has already been
involved in a number of HCI schemes and a significant number of potential
contracts were currently under negotiation.

The Company would like to reassure shareholders that Meriden will continue to
fulfil its commitments under pre-existing contracts. However, Meriden are
seeking clarification that those schemes that have been contracted prior to 6th
April, but not yet executed, can still be performed under the outgoing
legislation. Unless there is a reversal in the announced intention to cease with
HCI schemes, those schemes agreed, but not yet contracted, are almost certain to
now be aborted by the employer.

A spokesman for HM Treasury stated "We considered that (HCI) had basically
served its purpose and over a number of years it had led to a very large
increase in the number of employees who are now IT literate and that was always
our objective."

He said the government would now be concentrating on IT literacy for people on
low incomes and the elderly.

Obviously Meriden and other HCI providers will be challenging decision as this
appears at odds with the government's main aim of increasing IT literacy across
the population generally..

The directors will continue to monitor all news items regarding the change of
the HCI policy and will endeavour to keep shareholders informed to any changes
that may be of importance to the Company and its shareholders.

Enquiries

James Brinton                    01562 701600
Company Secretary                James.brinton@meriden-group.co.uk

Jonathan Wright                  020 7107 8000
Seymour Pierce Limited



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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