14 December 2016

McCarthy & Stone plc (the "Company")

Annual Report and Accounts and Notice of Annual General Meeting

Proposal to make an off-market Purchase of a Fractional Share

Further to the Company's announcement on 15 November 2016 of its annual financial results to 31 August 2016, the Annual Report has today been sent to shareholders together with the Notice of the 2017 Annual General Meeting, which will be held at the offices of Addleshaw Goddard, Milton Gate, 60 Chiswell Street, London EC1Y 4AG at 10.30am on Wednesday 25 January 2017.

Copies of the Annual Report, the Notice of Annual General Meeting of the Company and the Form of Proxy have been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

The Annual Report and the Notice of Annual General Meeting will be available to download from the Company's website at www.mccarthyandstonegroup.co.uk and hard copies can be requested from the Company Secretary at the registered office at Fourth Floor, 100 Holdenhurst Road, Bournemouth, Dorset BH8 8AQ.

Following the share capital consolidation which took place prior to admission of the Company's ordinary shares to the Official List of the London Stock Exchange in November 2015, a small number of shareholders held fractional shares. These fractional shares were aggregated into whole ordinary shares where possible and sold in the market for the benefit of the Company, but one fractional (0.25) share (the "Fractional Share") remains outstanding.  A special resolution will be put to shareholders at the forthcoming Annual General Meeting seeking authority for the Company to buy back the Fractional Share from its registered owner, Mrs Paula Jordan.  Following repurchase, the Fractional Share will be cancelled.

The appendix to this announcement (Appendix) is a supplement to the Company's announcement on 15 November 2016 of its annual financial results to 31 August 2016 (the Results Announcement). It contains the information required to be communicated in unedited full text pursuant to DTR 6.3.5 that is in addition to the information communicated in the Results Announcement.  The Appendix should be read together with the Results Announcement.

For further information please contact:

Patrick Hole

Group General Counsel and Company Secretary

Telephone: 01202 508040

APPENDIX

The directors of the Company confirm that, to the best of their knowledge:

• The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

• The strategic report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

This responsibility statement was approved by the directors on 14 November 2016 and signed on their behalf by:

Clive Fenton                                                                    Nick Maddock

Chief Executive Officer                                               Chief Financial Officer

14 November 2016                                                        14 November 2016

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