MANCHESTER, England, June 28 /PRNewswire/ --     Members of The Co-operative Group are set to receive a share of profit
payment totalling GBP19.6m for their trade in 2006 it was revealed today (28
June).

The Co-operative, which re-launched its membership scheme last year, will
pay an annual share of profits equivalent to 1.43p for each point earned
across its family of businesses.

The scheme is unique in that members receive a cash dividend based on the
points they earn when they trade at any of the Group's businesses (food;
travel; pharmacy and funeral outlets as well as the Co-operative Bank and
Co-operative Insurance (CIS) and the online store Coop Electrical Shop).

These points are then converted into cash and payments are made twice a
year in June and December. Because the payments are linked to the profits of
the Co-operative Group, the value of the points varies year on year.

The Co-operative allows members to give all, or part, of their share of
profit payments to community projects via its Community Fund scheme.

Of the 1.4 million members who will be receiving a payment in the next
few days, just under half have elected to give at least the odd pence of
their payment to community groups whilst others have chosen to forego their
entire share of profit dividend. This means more than GBP520,000 will go
directly to charity groups working with local communities.

Members are also actively encouraged to assert pressure for change on a
range of issues including climate change and social exclusion. This level of
engagement helps to maintain The Co-operative Group's reputation for cutting
edge initiatives such as Responsible Food Retailing, Responsible Shareholding
within Co-operative Insurance and the Co-operative Bank's "Customers Who
Care" campaigns.

It is the combination of all these elements that creates the co-operative
difference and which makes being a member of the Co-operative a totally
different experience from being just a loyalty cardholder with another
retailer.

Since the membership scheme was re-launched in September 2006, more than
500,000 members have joined The Co-operative Group.

Members will receive their individual payments either by cheque,
directly into their bank account or in vouchers that can be exchanged for
goods or services.

Chief Executive of The Co-operative Group Martin Beaumont said: "Last
year was a good one for the Group as a whole and, following the launch of our
new membership scheme, for the first time members can reap the rewards of our
success across our diverse family of businesses.

"The growth in members since last year clearly demonstrates that many
consumers share our belief in self-help, social responsibility and democracy
and like us, are prepared to take a stand on consumer and social issues.

"At a time when communities are becoming increasingly dominated by a
handful of large and impersonal businesses, we are showing consumers that
there is a better alternative, one which is ultimately owned and controlled
by them."

As well as the new style membership scheme, the Group is rolling out a
new brand identity, The Co-operative, across its entire estate of more than
3,000 UK outlets, from food to funerals, banking to insurance, travel to
pharmacy.

Notes to Editors:

Each year the value of a membership point is determined by how much
profit the Group makes. For 2006 payment the value of a point has been set at
1.43p. So, if a member earns 100 points they will receive GBP1.43.

Share of profits payment are paid to members every six months, usually in
mid June and late November.

In most cases a member will earn one point for each pound spent. In the
following businesses however, The Co-operative Bank, CIS and smile, members
will receive the following:

- 1 point for every GBP5 held or borrowed on average in Co-operative Bank
or smile current or credit card accounts

- 1 point for every GBP5 outstanding on a Co-operative Bank or smile loan

- 1 point for every GBP10 held on average in a Co-operative Bank or smile
savings account

- 1 point for every GBP20 outstanding on a Co-operative Bank mortgage

- 1 point for every GBP5 borrowed on average in Co-operative Bank
flexible loan accounts

- 500 points for holding a Co-operative Insurance home or motor insurance
policy for 12 months. (250 points for six months)

Full details of how points are earned are listed on our website:
www.co-operative.co.uk/membership.