Re:                                                                                             EQUITY RELEASE FUNDING
(NO.2) PLC
                                                                                                 GBP 45000000
                                                                                                 MATURING: 26-May-2027
                                                                                                 ISIN: XS0147705775
                                                                                                                                  
 PLEASE BE ADVISED THAT THE INTEREST RATE FOR THE PERIOD
 26-Nov-2008 TO 26-Feb-2009 HAS BEEN FIXED AT 4.386250 PCT
  
 DAY BASIS: ACTUAL/365(FIX)
  
 INTEREST PAYABLE VALUE 26-Feb-2009 WILL AMOUNT TO:
 GBP 2.21 PER GBP 199.79 DENOMINATION
    
    
    


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