Northern Rock Launches Improved E-bonds

NEWCASTLE UPON TYNE, England, May 3, 2011 - Northern Rock has launched two new improved issues of its online fixed
rate e-bond account, providing competitive interest rates for those savers
who wish to operate their accounts online. E-bond (Issues 7 and will be
available from April 2011.

With a minimum deposit of just GBP1, customers can benefit from a
competitive fixed rate of interest until 20 May 2012 on e-bond issue 7, which
pays 3.10% gross*/AER** annually, or choose e-bond issue 8, which pays 4.10%
gross*/AER** pa, fixed until 20 May 2014. Monthly interest rate options are
also available for both products. Accounts must be opened and operated online
and initial deposits can be made online by electronic transfer from another
bank or building society.

E-Bonds (www.northernrock.co.uk/savings/Find/Results/Bonds)
account holders can choose to have their interest paid annually (interest is
calculated daily) on 5 August, or monthly (the monthly interest rate is 0.30%
below the gross* annual rate) on the 7th of the month (available next
business day).

Additional deposits to the fixed rate bonds (
www.northernrock.co.uk/savings/Find/Results/Bonds/) can be made during
the offer period up to a maximum of GBP250,000 per customer. E-bonds (Issues
7 and are non-redeemable and neither issue allows any withdrawals or
closure during its respective fixed rate period. The bonds are offered on a
strictly limited issue basis and will be withdrawn without notice once fully
subscribed. Once withdrawn, no further deposits will be accepted.

About Northern Rock:

Northern Rock plc is a new bank, authorised by the FSA as a
deposit taker and mortgage lender from 1 January 2010. It offers savings
accounts (www.northernrock.co.uk/savings/) to customers in the UK and
Ireland and mortgages (www.northernrock.co.uk/mortgages/) to UK
borrowers. New products are offered through both direct channels - including
a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures
agreed with the EC as part of the State Aid approval announced in October
2009.

Notes to Editors:

*GROSS is the rate of interest paid to eligible non-taxpayers without
deduction of tax. Please note interest will be paid net of tax unless the
customer is eligible to receive interest gross and submit the required
registration form to Northern Rock.

**AER stands for Annual Equivalent Rate and shows what the interest rate
would be when interest is paid and added to the capital balance each year.

    PR Contact:

    Jule Wilson
    Northern Rock House
    Gosforth
    Newcastle upon Tyne
    NE3 4PL
    +44(0)191-279-4676

www.northernrock.co.uk

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