Read a message for customers from Ron Sandler (Executive Chairman)

As the Executive Chairman of Northern Rock I'd like to let you know about our plans for the Company whilst under temporary public ownership and what this will mean for you, as a valued customer.

As you may be aware, one of our primary business objectives is to repay the Bank of England loan, as quickly as possible. We aim to achieve this over the next three to four years, through the creation of a smaller, more focused, financially viable mortgage and savings bank, which will ultimately be returned to the private sector.

In doing so, we will continue to focus on the things we do best - running an efficient operation and providing savings and mortgage products to our customers. We will continue to provide a high level of customer service, both through our branch network, which will be retained and through our customer service centres. We will also keep our Savings and Mortgage Pledge, to ensure we treat you fairly and in an open, honest and transparent manner.

Inevitably, some things will have to change whilst we are in the process of repaying the Bank of England loan. In particular, because we need to reduce the size of our business, we will not always be able to offer our mortgage customers a competitive new deal when they come to the end of their existing product term. Customers who do decide to move to a new lender can be sure that we will help them seek an alternative and make it as easy as we can to transfer their mortgage.

We are not offering unsecured loans to new customers, although customers with an existing unsecured loan with us will not be affected in any way.

In most other aspects, however, it will be business as usual. Our brand name is Northern Rock and will remain so. The name carries a great deal of goodwill amongst our customers, most of whom have stayed with us despite the difficulties we have faced. We very much appreciate your loyalty and will try to repay it by continuing to offer you an excellent level of service.

I will update you again, as and when we approach the key milestones in our business plan.

I hope you have found this useful and I have been able to reassure you that we will do our best to continue to look after you.

Thank you again for your loyalty and support.

RON SANDLER

Executive Chairman