Contents:

Executive Summary 1. Industry Overview REPORT COVERAGE REPORT BACKGROUND ECONOMIC TRENDS Population Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2000-2004 Gross Domestic Product Table 1.2: UK Gross Domestic Product at Current Prices and Annual Prices (£m), 2000-2004 Inflation Table 1.3: UK Rate of Inflation (%), 2000-2004 Unemployment Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2000-2004 MARKET SIZE Table 1.5: The UK Market for Legal Services by Value (£m), 2000-2004 Figure 1.1: The UK Market for Legal Services by Value (£m), 2000-2004 MARKET SEGMENTATION Table 1.6: The UK Market for Legal Services by Key Market Sector by Value (£bn), 2000-2004 Figure 1.2: The UK Market for Legal Services by Key Market Sector by Value (%), 2004 Trends in the Type of Work Undertaken Table 1.7: Average Breakdown of Gross Fee Income for Legal Firms in England and Wales by Type of Work (%), 1999, 2001 and 2003 INDUSTRY STRUCTURE Concentration By Employment Table 1.8: Concentration in Employment of Solicitors in England and Wales (number and %), 2003/2004 By Turnover Table 1.9: Concentration in Turnover of Legal Firms in the UK (£m and %), 2004 By Type of Work Table 1.10: Average Breakdown of Gross Fee Income for Legal Firms in England and Wales by Type of Work and Size of Firm (number of solicitors and %), 2003 Number of Solicitors Table 1.11: Number of Solicitors with Practising Certificates from The Law Society of England and Wales, 2000-2004 By Specialism Table 1.12: Types of Work Undertaken by Practising Solicitors in England and Wales (number of solicitors and %), June 2005 Table 1.13: Number of Legal Specialists Accredited by The Law Society of Scotland by Area of Specialism, 2005 KEY TRENDS Review of the Legal Profession in England and Wales New Company Structures New Entrants Legal Aid Review Regulatory Changes Marketing PROFESSIONAL BODIES AND OTHER ORGANISATIONS Association of Personal Injury Lawyers Bar Council Council for Licensed Conveyancers Government Legal Service Legal Aid Practitioners Group Resolution Solicitors in Local Government The Law Society 2. PEST Analysis POLITICAL FACTORS ECONOMIC FACTORS SOCIAL FACTORS TECHNOLOGICAL FACTORS 3. Primary Research INTRODUCTION METHOD OF CHOOSING A LAW FIRM Table 3.1: Method of Choosing a Law Firm or Legal Representative (% of respondents), 2005 By Age Table 3.2: Method of Choosing a Law Firm or Legal Representative by Age (% of respondents), 2005 By Social Grade Table 3.3: Method of Choosing a Law Firm or Legal Representative by Social Grade (% of respondents), 2005 By Region Table 3.4: Method of Choosing a Law Firm or Legal Representative by Region -- the North and Scotland (% of respondents), 2005 Table 3.5: Method of Choosing a Law Firm or Legal Representative by Region -- the Midlands, South and Wales (% of respondents), 2005 CHOICE OF PROVIDER IN A LIBERALISED MARKET Table 3.6: Choice of Legal Service Provider in a Liberalised Market (% of respondents), 2005 Lawyers and Solicitors Table 3.7: Use of Lawyers and Solicitors for Legal Services in a Liberalised Market (% of respondents), 2005 Insurance Companies Table 3.8: Use of Insurance Companies for Legal Services in a Liberalised Market (% of respondents), 2005 Banks/Building Societies Table 3.9: Use of Banks/Building Societies for Legal Services in a Liberalised Market (% of respondents), 2005 Estate Agents Table 3.10: Use of Estate Agents for Legal Services in a Liberalised Market (% of respondents), 2005 Accountants Table 3.11: Use of Accountants for Legal Services in a Liberalised Market (% of respondents), 2005 Claims Companies Advertising on TV Table 3.12: Use of Claims Companies Advertising on TV for Legal Services in a Liberalised Market (% of respondents), 2005 Leading Supermarkets Table 3.13: Use of Leading Supermarkets for Legal Services in a Liberalised Market (% of respondents), 2005 Motoring Organisations Table 3.14: Use of Motoring Organisations for Legal Services in a Liberalised Market (% of respondents), 2005 Other Large Companies Table 3.15: Use of Other Large Companies| for Legal Services in a Liberalised Market (% of respondents), 2005 4. Competitive Structure THE MARKETPLACE City/Corporate Firms National/Regional Firms High-Street Firms Specialist Firms MARKET LEADERS Table 4.1: The Top Ten Law Firms in the UK by Turnover and Net Profit (£m and £000), 2004/2005 Clifford Chance LLP Table 4.2: Clifford Chance LLP -- Key Legal Services, 2005 Table 4.3: Clifford Chance LLP -- Key Industry Groups, 2005 Linklaters Table 4.4: Linklaters -- Core Practice Areas, 2005 Freshfields Bruckhaus Deringer LLP Allen & Overy LLP Table 4.5: Allen & Overy LLP -- Areas of Practice, 2005 Lovells DLA Piper Rudnick Gray Cary LLP Eversheds LLP Slaughter and May Table 4.6: Slaughter and May -- Core Practice Areas, 2005 Herbert Smith LLP Table 4.7: Herbert Smith LLP -- Key Industry Sectors, 2005 Norton Rose Table 4.8: Norton Rose -- Key Industry Groups, 2005 Other Companies Addleshaw Goddard Ashurst SJ Berwin LLP Berwin Leighton Paisner Clyde & Co CMS Cameron McKenna LLP Denton Wilde Sapte Hammonds Pinsent Masons Simmons & Simmons MARKETING ACTIVITY Main Media Advertising Table 4.9: Main Media Advertising Expenditure by Solicitors, Claims Companies and Accountants (£000), Years to June 2001-2005 5. Business and Commercial Affairs DEFINITION KEY TRENDS MARKET SIZE Table 5.1: The UK Market for Legal Services -- Turnover from Business and Commercial Affairs (£bn), 2000-2004 Mergers and Acquisitions Table 5.2: Mergers and Acquisitions in the UK and Europe by Number and Value ($bn), 2003 and 2004 MAJOR PLAYERS FORECASTS 2005 TO 2009 Table 5.3: The UK Market for Legal Services -- Forecast Turnover from Business and Commercial Affairs (£bn), 2005-2009 6. Personal Injury and Accident DEFINITION KEY TRENDS MARKET SIZE Table 6.1: The UK Market for Legal Services -- Turnover from Personal-Injury and Accident Work (£bn), 2000-2004 Number and Value of Personal-Injury Cases Table 6.2: Number of Personal-Injury Actions Set Down for Trial in County Courts in England and Wales, 2000-2004 Table 6.3: Number of Personal-Injury Trials Disposed of in County Courts in England and Wales by Amount of Award, 2000-2004 MAJOR PLAYERS InjuryLawyers4U National Solicitors Network Russell Jones & Walker FORECASTS 2005 TO 2009 Table 6.4: The UK Market for Legal Services -- Forecast Turnover from Personal-Injury and Accident Work (£bn), 2005-2009 7. Commercial Property DEFINITION KEY TRENDS MARKET SIZE Table 7.1: The UK Market for Legal Services -- Turnover from Commercial-Property Work (£bn), 2000-2004 MAJOR PLAYERS FORECASTS 2005 TO 2009 Table 7.2: The UK Market for Legal Services -- Forecast Turnover from Commercial-Property Work (£bn), 2005-2009 8. Residential Conveyancing DEFINITION MARKET SIZE Table 8.1: The UK Market for Legal Services -- Turnover from Residential Conveyancing (£bn), 2000-2004 Number of Residential Property Transactions Table 8.2: Number of Residential Property Transactions in England, Wales and Northern Ireland (000), Years to March 2001-2005 MAJOR PLAYERS Countrywide Property Lawyers EDC Lord HammondsDirect Legal Marketing Services Shoosmiths Other Companies FORECASTS 2005 TO 2009 Table 8.3: The UK Market for Legal Services -- Forecast Turnover from Residential Conveyancing (£bn), 2005-2009 9. Other Legal Services DEFINITION KEY TRENDS MARKET SIZE Table 9.1: The UK Market for Legal Services -- Turnover from Other Legal Services (£bn), 2000-2004 FORECASTS 2005 TO 2009 93 Table 9.2: The UK Market for Legal Services -- Forecast Turnover from Other Legal Services (£bn), 2005-2009 10. A Global Perspective INTRODUCTION THE LEADING GLOBAL LAW FIRMS Table 10.1: The Top 20 Law Firms in the World by Annual Income, 2004 THE US MARKET THE GERMAN MARKET THE FRENCH MARKET THE JAPANESE MARKET 11. The Future INTRODUCTION Population Table 11.1: Forecast UK Resident Population by Sex (000), Mid-Years 2005-2009 Gross Domestic Product Table 11.2: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2005-2009 Inflation Table 11.3: Forecast UK Rate of Inflation (%), 2005-2009 Unemployment Table 11.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2005-2009 FORECASTS 2005 TO 2009 100 Table 11.5: The Forecast UK Market for Legal Services by Key Market Sector by Value (£bn), 2005-2009 MARKET GROWTH Figure 11.1: The UK Market for Legal Services by Value (£bn), 2000-2009 FUTURE TRENDS Industry Structure Number of Solicitors E-Conveyancing E-Government 12. Consumer Confidence METHODOLOGY THE WILLINGNESS TO BORROW Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2004, February 2005, May 2005 and August 2005 The Desire to Borrow is Waning Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2004, February 2005, May 2005 and August 2005 THE WILLINGNESS TO SPEND FROM SAVINGS Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2004, February 2005, May 2005 and August 2005 Confidence is Fragile Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2004, February 2005, May 2005 and August 2005 The Extremes Contract 13. Further Sources Associations Publications General Sources Government Sources Other Sources Bonnier Information Sources

Companies Mentioned

- Clifford Chance LLP - Linklaters - Freshfields Bruckhaus Deringer LLP - Allen & Overy LLP - Lovells - DLA Piper Rudnick Gray Cary LLP - Eversheds LLP - Herbert Smith LLP - Norton Rose - Addleshaw Goddard - Ashurst - SJ Berwin LLP - Berwin Leighton Paisner - Clyde & Co - CMS Cameron McKenna LLP - Denton Wilde Sapte - Hammonds - Pinsent Masons - Simmons & Simmons - InjuryLawyers4U - National Solicitors Network - Russell Jones & Walker