Grant Thornton confirms departure of Brazilian member firm

3 August 2010

Grant Thornton International Ltd confirms that it has, Monday 2 August 2010, received notice from its Brazilian member firm of that firm's intention to leave the Grant Thornton international organisation with immediate effect. We confirm that no prior notice was given of this intention. We understand that the resignation is in order that Terco Grant Thornton will be integrated into Ernst & Young Brazil.

We have no further information in respect of the financial nature of the acquisition or the considerations paid to the partners as a result. Any enquiries should be addressed to Ernst & Young Brazil.

We have already commenced negotiations with a number of alternative organisations in Brazil to replace the firm and will make announcements shortly.

Ed Nusbaum, CEO, Grant Thornton International, commented, "It is regrettable that the partners of Terco have decided to sell to Ernst & Young. However, there will, inevitably be changes to the make up of our organisation as we execute on our global strategy. The recent developments in South Africa, China and elsewhere bear testimony to the strength of our brand and our strong business proposition. There will continue to be further realignments as we go forward. We wish Ernst & Young well with their acquisition."

Ed continued, "Strong brands are always subject to the interests of others, we are no exception to this rule and have to accept it as a mark of our success at building a differentiated and strong organisation."

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