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Offer Update Announcement

Update announcement regarding the recommended acquisition of ICG by Aella plc

On 8 March 2007 the independent directors of ICG and the board of directors of Aella plc ("Aella") announced the terms of a recommended acquisition for cash of the entire issued and to be issued share capital of ICG by Aella for cash consideration of €18.50 per ICG Unit. Following on from this announcement, on 20 March 2007, the Company posted the Scheme Document to ICG shareholders and announced that the shareholder meetings to approve the acquisition would take place on 12 April 2007.

Since the announcement of the proposed acquisition by Aella, the Independent Directors of ICG (John B McGuckian, Bernard Somers and Peter Crowley) have noted that there has been significant trading in ICG units at prices in excess of €18.50 per ICG Unit and also that there has been certain press speculation and commentary regarding potential higher competing offers being announced for the Company.

In light of these factors the Independent Directors would like to highlight the following facts to shareholders in advance of the shareholder meetings on 12 April:

• there have been no announcements from third parties regarding either a firm intention to make a competing offer or a possible intention to make a competing offer in accordance with Rules 2.5 and 2.4 respectively of the Irish Takeover Rules;
• the Independent Directors have not received any approaches from any third parties regarding making a competing offer nor have there been any requests for access to due diligence information in accordance with Rule 20.2 of the Irish Takeover Rules;
• the recommended offer from Aella of €18.50 per ICG Unit was the result of intensive negotiations between the Independent Directors and Aella and was materially higher than the offer level at which Aella made its initial approach to the Company;
• the offer of €18.50 per ICG Unit represents a premium of:
  • + 18.6 per cent. to the closing ICG Unit price of €15.60 on 7 March 2007, the date immediately prior to the commencement of the offer period; and
  • + 45.0 per cent. to the average ICG Unit price over the six months preceding Aella's approach to the Company of €12.76;
• Aella has not disclosed any intention to increase its offer above €18.50 per ICG Unit; and
• finally, should the acquisition not be approved by shareholders, in accordance with Rule 35 of the Irish Takeover Rules, except with the consent of the Irish Takeover Panel, Aella and its shareholders may be prevented from making another offer for the Company for a period of 12 months.

Shareholders are asked to carefully consider these facts as part of their decision whether to vote in favour of or against the acquisition at the shareholder meetings on 12 April 2007. These facts are correct as at the date of this announcement. Should it be necessary, a further announcement will be made in due course.

The shareholder meetings to approve the acquisition, comprising two court meetings and an extraordinary general meeting (the "EGM"), will all take place at The Berkeley Court Hotel, Lansdowne Road, Dublin 4 on 12 April 2007 with the first court meeting commencing at 3.15 pm, the second court meeting commencing at 3.30 pm (or as soon thereafter as the first court meeting has concluded or been adjourned), and the EGM commencing at 3.45 pm (or as soon thereafter as the second court meeting has concluded or been adjourned).

Whether or not shareholders wish to attend the shareholder meetings, shareholders are asked to return the forms of proxy for the court meetings and the EGM relating to the acquisition which accompanied the Scheme Document to Computershare Investor Services (Ireland) Limited no later than 48 hours prior to the commencement of each meeting. If the forms of proxy for the court meetings are not lodged 48 hours prior to the commencement of the meetings they may be handed to the chairman of the relevant court meeting before the start of the relevant court meeting. The completion and return of a form of proxy for any of the meetings will not prevent ICG shareholders from attending and voting at the meetings in person if they wish to do so.

Enquiries

Irish Continental Group plc Telephone +353 1 855 2222

Independent Directors

John B McGuckian

NCB Corporate Finance Telephone +353 1 611 5611

Liam Booth

Jonathan Simmons

Shane Lawlor

The Independent Directors of Irish Continental Group plc accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they take responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

NCB Corporate Finance Limited, which is authorised in Ireland by the Financial Regulator under the Investment Intermediaries Act 1995, is acting exclusively for Irish Continental Group plc and no one else in connection with the acquisition and will not be responsible to anyone other than Irish Continental Group plc for providing the protections afforded to clients of NCB Corporate Finance Limited nor for providing advice in relation to the acquisition.