Northern Rock Launches Improved e-ISA Issue 2

NEWCASTLE UPON TYNE, England, April 8, 2011 - Northern Rock has launched a new issue of its online variable rate ISA to
complement its competitive portfolio of branch, postal and online savings
accounts.

e-ISA Issue 2 offers those who prefer to operate their savings accounts
(www.northernrock.co.uk/savings/) via the internet, an online option
for their tax-free* savings. e-ISA is a variable rate Cash ISA
(www.northernrock.co.uk/savings/Find/Results/ISAs/) set at a
competitive rate of interest.

Northern Rock's customer and commercial director Andy Tate said: "Our
customers want options. They want to be able to choose the best account to
meet their individual needs, whether that be tax-free or not, and variable or
fixed rate.

"We are pleased to increase our ISA rates
(www.northernrock.co.uk/savings/Find/Results/ISAs/), as the previous
issue was well received by our customers and the market as a whole."

For customers who prefer to earn a variable rate of interest on their
tax-free* savings, variable rate e-ISA Issue 2 can be opened with no initial
deposit.

Interest, which can be added to the account or paid into another account,
is paid annually on the first business day following the 11 March and
available the next business day on minimum balances of GBP1.00 (balances
which fall below this amount will earn Northern Rock's prevailing rate of
interest, 0.10% tax free*/AER** pa).

e-ISA Issue 2 allow transfers in from other providers and additional
deposits can be made to the Cash ISA (
www.northernrock.co.uk/savings/Find/Results/ISAs/), within HM Revenue
and Customs limits (GBP5,340 pa from 6 April 2011) up to 30 days after the
product is withdrawn.

Minimum withdrawals of GBP1 by BACS and GBP250 by CHAPS can be made from
the account. There is a GBP35 fee for transfers out via CHAPS.

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 to customers in the UK and Ireland and mortgage products 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:

*The tax-free rate is the contractual rate of interest payable where
interest is exempt from income tax.

**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.

    Media Contact:
    Jule Wilson
    Northern Rock House
    Gosforth
    Newcastle upon Tyne
    NE3 4PL
    +44(0)191-279-4676
    www.northernrock.co.uk

Media Contact: Jule Wilson, Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL, +44(0)191-279-4676, www.northernrock.co.uk