Mouchel Group Plc (MCHL.LN), a consulting and business services company announced Friday that it has made significant progress and expects to finalize its new banking facilities shortly.

MAIN FACTS:

-On December 6, 2010, the company announced that the refinancing of its banking facilities was proceeding to plan and that it expected to agree new medium term facilities by the time of its Half Year Results announcement in March 2011.

-The Group's key relationship banks, Barclays PLC (BARC.LN) Lloyds Banking Group (LLOY.LN)and Royal Bank of Scotland (RBS.LN), remain supportive.

-Mouchel notes the announcement this morning by Costain Group Plc (COST.LN) of its revised proposal to make a recommended offer for Mouchel.

-The company also announced, on December 6, 2010, that it had received approaches which would, if made, result in an offer being made for the company for the purposes of the City Code on Takeovers and Mergers.

-Since then, the company has received further approaches.

-The company are actively reviewing these and other options.

-Its priority remains to enhance shareholder value, and the Board strongly advises shareholders to take no action.

-Shares at 1015 GMT up 22.5 pence, or 19.8%, at 136.3 pence.

-By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com