ELEPHANT LOANS & MORTGAGES PLC
                         ("Elephant" or, "the Company")
                                        
                Reverse Takeover, Suspension of Trading in Shares
                                        &
                                 Trading Update

11 April 2008

Following  recent press enquiries and speculation within the loan  and  mortgage
industry  Elephant  Loans & Mortgages plc is pleased to  announce  that  it  has
agreed  outline  terms to acquire the entire issued share capital  of  Financial
Trade  Partnership Limited ("FTP"), which operates the UK's largest  network  of
secured  loan  advisers.   Given  the relative size  of  FTP  to  Elephant,  the
transaction  constitutes a reverse takeover under AIM Rule 14 and  is  therefore
subject  to  the approval of the Company's shareholders at a general meeting  of
the Company.

Once  appropriate legal and financial due diligence has been completed  by  both
Elephant  and  FTP  and  a  conditional share purchase agreement  entered  into,
Elephant  will  be issuing an Admission Document to shareholders, in  compliance
with  the  AIM Rules, in order that the Company's shareholders may  approve  the
transaction.  The transaction is at an early stage and, in accordance  with  AIM
Rule  14,  the  Board  has  requested that trading in the  Company's  shares  be
suspended until publication of the Admission Document.

In the event that consideration for the acquisition is satisfied by the issuance
of  shares  in  Elephant,  the transaction may be subject  to  the  approval  of
independent shareholders and a waiver from the Takeover Panel of the  obligation
that  would  otherwise arise on the shareholders of FTP to make a general  offer
for Elephant.

FTP  is  a  brokerage  network which provides a range of  services  to  brokers,
including  the  management of compliance and operational  costs,  training,  and
product  and  sales  support.  As announced on 20 March, Elephant's  subsidiary,
Elephant  Loans  (Direct) Limited has become an Appointed Representative  of  FT
Compliance Services Limited, a wholly owned subsidiary of FTP, and a  member  of
the FT Partners network.

The  proposed  takeover brings benefits to both parties and full information  on
the  terms of the reverse takeover and FTP, as well as the benefits to  Elephant
shareholders will be provided in the Admission Document.

As  has  been  well documented, the effects of the global "credit  crunch"  have
created  severely  challenging trading conditions for all  market  participants.
The  Board of Elephant expects the Company's losses for the second half  of  the
year  to  31 March 2008 to be at a similar level to those reported in the  first
half.


For further information please contact:
www.elephantloans.co.uk

Elephant Loans & Mortgages plc
Gary Miller-Cheevers, Chief Executive                    T: 020 8892 2777

Simon Hargreaves, Non-Executive Chairman                 T: 07768 637 643

Blomfield Corporate Finance
Nick Harriss                                             T: 020 7512 0191

Katie Tzouliadis, Biddicks                               T: 020 7448 1000
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