Northern Rock Launches New Fixed Rate E-Bond

GOSFORTH, England, October 1, 2010 - Northern Rock has launched a new e-bond account, providing a
competitive interest rate for those savers who wish to operate their account
online.

With a minimum deposit of just GBP1, customers can benefit
from a fixed rate of interest for one year. e-bond (Issue 1) pays 3.00%
gross*/AER** pa until 20 October 2011. Accounts must be opened and operated
online. Initial deposits can be made online by electronic transfer from
another bank or building society, or from an existing Northern Rock account.

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 can be made during the offer period up to
a maximum of GBP 250,000 per customer. e-bond (
www.northernrock.co.uk/savings/online-accounts/e-bond_issue_1/) (Issue
1) is non-redeemable and does not allow any withdrawals or closure during the
fixed rate period. The fixed rate bond (
www.northernrock.co.uk/savings/fixed-rate-bonds/) is offered on a
limited issue basis and will be withdrawn without notice once fully
subscribed. Once withdrawn, no further deposits will be accepted.

In keeping with Northern Rock's commitment to providing
openness, transparency, and fair treatment of customers, full product details
are available at Northern Rock's website at
www.northernrock.co.uk/savings.

Notes to Editors

Northern Rock e-bond - Issue 1

* 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 you are
eligible to receive interest gross and submit the required registration form
to us.

** 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.

No closure or withdrawals are permitted before maturity.

Northern Rock (www.northernrock.co.uk/) 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.

Northern Rock plc - Registered in England and Wales (Company No.
6952311).

Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne,
NE3 4PL.

Authorised and regulated by the Financial Services Authority.

    Media Contacts:

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

    www.northernrock.co.uk

Media Contacts: Jule Wilson, Communications Manager, Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL, +44(0)191-279-4676.