Skipton International Celebrates 15 Years

ST PETER PORT, Guernsey, November 15, 2010 - Skipton International Limited, the Guernsey based offshore savings and
local Channel Islands mortgage specialist, is celebrating its 15th
anniversary this month.

In the years since the company formerly known as Skipton Guernsey started
business, much has changed in the market. Now, following a buyout, an
amalgamation and a name change, Skipton International (
www.skiptoninternational.com/) is one of Guernsey's premier mortgage
lenders and savings banks, both for residents and British expatriates
globally.

The market for offshore deposits and savings in 1995 was very different,
with a far greater number of small offshore savings banks operating out of
both the Isle of Man and Channel Islands, all chasing the same savings
business. Skipton Guernsey's product range was simple, easy to understand and
attractive - three characteristics which the bank still sticks by today. In
all probability, the 1995 saver with Skipton Guernsey would have had their
savings in a Guernsey 60 account paying a gross interest rate of up to 7.00%,
but in the 1990s, UK Base Rate stood at 6.625%.

When the company first opened for business, it was an innovative pioneer
of the concept of the managed bank, a structure which allowed administration
and IT systems to be subcontracted. Key advantages of such a business model
are cost containment and flexibility, factors which enabled Skipton Guernsey
to pay such relatively high interest rates.

Skipton Guernsey outgrew this arrangement in October 2002, when it bought
a Guernsey mortgage book from Standard Chartered Grindlays and became a
mortgage lender (
www.skiptoninternational.com/mortgages/guernsey.aspx?utm_source=mainMenu&utm_medium=textLink&utm_campaign=silWebsite&utm_term=guernseyMortgagesLink
) in Guernsey. May 2005 saw the next big change to the business when the
Jersey mortgage operation (
www.skiptoninternational.com/mortgages/jersey.aspx?utm_source=mainMenu&utm_medium=textLink&utm_campaign=silWebsite&utm_term=jerseyMortgagesLink
) was started. At the time, the service was only available via a small
selection of key mortgage brokers, but today, this too has grown into a
thriving business with a wide range of partners in Jersey and also a direct
business model.

Since 2002, across both Guernsey and Jersey, the lending operation has
developed from a GBP100 million book to one valued at nearly GBP500 million.

The well publicised credit crunch throughout 2008 and 2009 has also led
to significant changes. In the UK, Skipton Building Society merged with
Scarborough Building Society, whilst in Guernsey, Skipton Guernsey
amalgamated with Scarborough Channel Islands Limited, which produced another
big change - a new name and a significant uplift in staff numbers - as those
from the old Scarborough Channel Islands joined the new Skipton International
Limited.

With a wide range of local community activities (
www.skiptoninternational.com/news/?utm_source=mainMenu&utm_medium=textLink&utm_campaign=silWebsite&utm_term=newsLink
) ranging from the sponsorship
of Floral Guernsey to becoming the lead sponsor of the newly named Skipton
Swimarathon, Skipton International also plays an active and high profile role
in the local community. The Skipton Swimarathon is organised jointly by the
local Lions Club and Round Table and the first Swimarathon was held in 1977.
Since modest beginnings, Swimarathon has gone on to raise over GBP1 million
pounds for good causes locally.

(Due to the length of these URLs, it may be necessary to copy and paste
the hyperlinks into your Internet browser's URL address field.
Remove the extra spaces if necessary.)

Managing Director Alan Bougourd is looking forward to the new challenges
facing the bank. Commenting on the prospects for the next few years, he said,
"There is no doubt that we have just come through one of the toughest periods
on record. You simply need to compare the number of independent organisations
offering savings and mortgage services today with the picture five years ago.
That said, we are focussed on this business, we know it well and we have no
plans to change that focus. We have always prided ourselves on our approach
to customer service too, taking the time to make sure every customer had the
right mortgage or savings account for their circumstances at the time and it
is this personalised, individual approach which has stood us in such good
stead. You could argue these are local values, we would not disagree, but we
also see them as good business sense as well. In difficult markets such as at
present, this ability to focus on the customer and their personal needs and
to really take the time to talk to them is vital."

For more information on Skipton International savings products, visit
www.skiptoninternational.com or call +44(0)1481-727374

Photos available on request:

Alan Bougourd, HE The Governor, Jeff Kitts, Chairman, Skipton Swimarathon

Editor's notes:

1) AER stands for Annual Equivalent Rate and illustrates what the rate
would be if interest was paid and added each year.

2) Skipton International Limited (SIL) is a wholly owned
subsidiary of Skipton Building Society (SBS), the UK's 4th largest
building society with over GBP15 billion assets.

3) SIL is licensed under the Banking Supervision (Bailiwick of
Guernsey) Law 1994, as amended.

4) Skipton Building Society has given an undertaking agreeing
to discharge the liabilities of SIL in so far as SIL is unable to
discharge them out of it own assets and whilst SIL remains a subsidiary
of Skipton Building Society.

5) As a Licensed Bank in Guernsey, Skipton International
Limited is a participant in the Guernsey Banking Deposit Compensation
Scheme (the "Scheme") established by The Banking Deposit Compensation
Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance"). The
following is a brief summary of the Scheme, but is not intended as a
substitute for the actual wording of the Ordinance, a copy of which is
available on request.

    - The Scheme only applies to 'qualifying deposits', which
      broadly means deposits made by natural persons for their own
      benefit; with a few limited exceptions such as, for example, deposits
      made by trustees of retirement annuity trust schemes, the Scheme does
      not apply to companies, trusts, partnerships or charities.

    - The Scheme will provide compensation in the event that a
      Licensed Bank is unable to repay its depositors. Under normal
      circumstances, payment will be made within 3 months of receipt of a
      valid claim form.

    - Compensation is limited to a maximum of GBP50,000 per
      individual claimant; in the case of a joint account each depositor
      would be entitled.

    - Total Scheme compensation in any five year period is limited
      to GBP100 million. If claims exceed this cap, compensation would be
      reduced pro rata. The cap also means that compensation in respect of
      any one bank cannot exceed GBP100 million.

    - The amount payable may be reduced if the Bank has any
      contractual right of set-off against the account. The Scheme is
      entitled to recover compensation from any funds subsequently paid
      out by the Bank.

    - Further information and a leaflet about the Scheme is
      available at:

      Website: www.dcs.gg

      Telephone: +44(0)1481-722756

      Post: P.O. Box 380, St Peter Port, GY1 3FY

6) Deposits made with SIL are not covered by the Financial
Services Compensation Scheme established under the UK Financial Services
and Markets Act 2000.

7) SIL places funds with SBS and thus its financial standing is
linked to SBS. Publicly available information, including reports and
accounts, is available from www.skipton.co.uk.

Copies of the latest SIL audited accounts are available on
request.

    Media contacts: Please contact:

    Guy Stephenson/Jennifer Duffy
    Nacelle Limited
    Tel: +44(0)20-8333-9125
    E-mail: jenny@nacelle.co.uk

Media contacts: Please contact: Guy Stephenson/Jennifer Duffy, Nacelle Limited, Tel: +44(0)20-8333-9125, +44(0)7980-241-558, E-mail: jenny at nacelle.co.uk