IG Group to Acquire HedgeStreet, Inc.

Binary Options Trading on the HedgeStreet Exchange to resume in early 2008

SAN MATEO, CA, November 19, 2007 -- IG Group Holdings plc ("IG" or "the Group"), a U.K.-based financial services firm, agreed on November 16, 2007 to purchase HedgeStreet, Inc. ("HedgeStreet") for US$6.0 million. IG will provide cash and equity as consideration for the acquisition, which is expected to be completed within 21 days.

HedgeStreet is a US company which, since 2004, has operated the HedgeStreet Exchange ("the Exchange"). The Exchange is a US-based Designated Contract Market operating under the regulatory oversight of the US Commodity Futures Trading Commission ("CFTC"). HedgeStreet is also registered with the CFTC as a Derivatives Clearing Organization. The Exchange has previously listed binary option contracts, principally on forex and commodities.

Commenting on the acquisition Tim Howkins, CEO of IG, said:

"For some time we have been interested in entering the US market, but regulatory constraints limit our ability to offer much of our existing product range. The acquisition of HedgeStreet marks an important step in our ongoing process of researching and developing as broad a product range as possible that can be offered to US retail clients.

"The acquisition of HedgeStreet gives us the necessary regulatory approvals, technology, intellectual property and most of the staff needed to operate an exchange allowing US retail clients to trade binary options. We intend to make some modifications to the Exchange, particularly the range of contracts offered, after which we will re-launch it. We are aiming for this re-launch to take place in early 2008. We will continue to develop and extend the range of contracts that can be traded on the Exchange in order to widen the appeal of our US offering.

"The US is the largest retail forex market in the world and already has a large number of providers. However, the regulatory environment is in the process of being tightened, including a significant increase in the capital requirements. It seems likely that this will reduce the number of competitors and that the time is now ripe for us, as a well-capitalized business with excellent technology, to enter this market. The ability to offer contracts traded on the Exchange, alongside a conventional over-the-counter forex offering, will, I believe, provide us with a unique proposition for US retail forex traders."

"Our acquisition of HedgeStreet represents a further step in our strategy of geographic expansion and, after some further development work, will give us the ability to offer the US market an innovative range of products."

About IG Group
IG Group Holdings, plc (IG) is a UK based financial services corporation. IG is a publicly traded firm listed on the London Stock Exchange. IG is a member of the FTSE 250 and currently has a market capitalization of approximately £1.4 billion.

IG Group's head office is in central London, with other offices in Melbourne, Singapore and Dusseldorf. IG Index and IG Markets are authorised and regulated by the Financial Services Authority (FSA). IG Markets is a member of the London Stock Exchange (LSE).