3i Group plc announces strong results and £700 million return to shareholders

Highlights

• A total return of £831 million representing a return of 22.5% on opening shareholders'' funds.
• Realisation proceeds on the sale of assets of £2,207 million generating realised profits of £576 million. Realisations were made at an uplift of 35% over opening values.
• Investment of £1,110 million (£1,322 million including co-investment funds).
• Final dividend of 9.7p, making a total ordinary dividend for the year of 15.2p, up 4.1%.
• Announcement of intention to return £700 million to shareholders through a bonus issue of listed B shares.

Baroness Hogg, Chairman of 3i Group plc, said:

"A strong position in a buoyant market enabled the Group to deliver a return of £831 million for the year. In addition good progress has been made towards achieving our vision. Another year of strong cash flow enables us to make further substantial returns of capital to shareholders."

3i''s Chief Executive, Philip Yea, said:

"With another very good set of results behind us, a detailed strategy for the future, and confidence high within the organisation, we remain determined to accelerate the development of 3i to deliver further shareholder value."

Commenting on the outlook, he added:

"Markets remain favourable, and although we expect our levels of realisations in the new financial year to be below last year''s exceptional levels, we expect to increase our level of investment again if the present economic conditions continue."

Return of capital to shareholders

The Board of 3i Group plc also announces the proposed return of £700 million to shareholders. The proposed cash return is currently expected to be made by way of a bonus issue of listed B shares accompanied by a share consolidation designed to maintain comparability of share price and earnings per share. This is currently expected to take place in July.

Resolutions relating to the return of capital proposals will be put to shareholders at an Extraordinary General Meeting. A circular convening the EGM and giving more information and detail on the proposals is expected to be sent to shareholders in June.

For further information, please contact:

3i Group plc
Philip Yea, Chief Executive -  020 7975 3386
Simon Ball, Finance Director -  020 7975 3356
Patrick Dunne, Group Communications Director -  020 7975 3283

Maitland Consultancy
Philip Gawith -  020 7379 5151

For further information regarding the announcement of 3i''s annual results to 31 March 2006, including video interviews with Philip Yea and Simon Ball (available 7.15am) and a live webcast of the results presentation (at 10.00am, available on demand from 2.00pm), please see /http//www.3igroup.com.

Notes to editors
3i is a world leader in private equity and venture capital. We focus on buyouts, growth capital and venture capital and invest across Europe, in the United States and in Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.