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Irish Continental Group plc refers to the following media statement issued yesterday 5th December 2004 by Irish Ferries Limited, a wholly owned subsidiary.

Irish Ferries Ireland/UK Services

Services Cancelled As A Result Of Unofficial Industrial Action By SIPTU Ships' Officers

Irish Ferries confirms that services on its Dublin / Holyhead and Rosslare / Pembroke routes are now cancelled as a direct result of unofficial industrial action taken by SIPTU Ships' Officers which commenced at 14.30 hrs today (Sunday, December 5th ), nearly sixteen hours ahead of their planned strike action which was due to commence at 06.00 hrs, tomorrow, Monday December 6th. Irish Ferries deeply regrets this action.

In the lead up to the planned strike action, Irish Ferries expressed the fear that its vessels would become bound up in the dispute in a manner unacceptable to the company, port authorities and other port users. This fear has been justified by the unofficial action that has now been taken.

Irish Ferries condemns the strike action being taken by the SIPTU ships' officers which, it is understood, was voted for by only 59 of their members. By engaging in such action, especially in the lead-up to Christmas, SIPTU ships' officers are putting at risk the livelihood of their fellow seafarers and their 1,200 colleagues who work in Irish Ferries whilst undermining customer confidence and forcing the transfer of passengers and freight to rival services.

The realities of the market place in which Irish Ferries operates is one in which customers now demand lower and better value fares that are truly competitive when matched against state subsidised and low fare air and sea carriers with whom the company is forced to compete. This is especially true on the company's Ireland / France service where the decision to contract in the crew required to operate the service when it resumes in March 2005 was one forced on the company by the economic requirement to restore competitiveness if the service is to continue.

Only by placing its Ireland / France service on a competitive footing through the proposed new crewing arrangement can Irish Ferries be hopeful of protecting its future operation in the wider interests of Irish tourism, the import/export trade, and the economic well-being of the South East region in particular. Failure to implement such measures could well lead to the closure of the route with all of the implications which this would have.

Irish Ferries confirms that it has now paid out, with effect from 30th November, in excess of €8 million to the high proportion of its Ireland/France crew members who opted to accept the exceedingly generous voluntary severance package offered. Those crew members have now left the company. Those who chose to remain in the company, approximately 25 persons, have been offered positions on Irish Sea services, some of whom have already transferred.

Ships officers employed by Irish Ferries on the Irish Sea enjoy the finest working conditions existing within the shipping industry world-wide including pay, pensions, time on/off and working conditions on board. None of these conditions were to be affected by any of the measures being implemented. There have been no forced job losses in the implementation of the new crewing arrangements coming into force on the Ireland/France route.

Irish Ferries calls on SIPTU and the ships' officers responsible for this strike action to reflect upon the impact it will have and the long-term consequences it may have for the well-being of the company and all employed in it.

END