PRELIMINARY STATEMENT

14 MONTHS TO 31 DECEMBER 2001

HIGHLIGHT

• Due to the change in year end, announced last September, these results cover 14 months to 31 December 2001 and are not directly comparable with the previous year's figures due to seasonal trading patterns in November and December.
• Investment of €99 million during the period including m.v. "Ulysses", the world's largest car ferry of its type.
• Adverse impact of Foot & Mouth Disease in mid-season now past.
• EBITDA of €53.5 million.
• Record Roll-on Roll-off freight carryings achieved following introduction of m.v. "Ulysses".
• Adjusted earnings per share (before goodwill charges) of 47.5c.
• Recently announced 5 year charter of Isle of Innisfree and extension of m.v. "Pride of Bilbao" charter underpin outlook for 2002 and beyond.

PRELIMINARY ANNOUNCEMENT OF RESULTS

14 MONTHS 31 DECEMBER 20 01

RESULTS FOR 14 MONTHS

As previously announced, in September of 2001, Irish Continental Group plc ("ICG" or the "Group") has changed its year end to 31 December. This is to align the reporting year with the new tax year in the Republic of Ireland, the marketing calendar of the business and norms within the travel and tourism business generally. (Results for the 12 months to 31 October 2001 were previously announced on 16 th January 2002).

Therefore, ICG is now issuing 14 months figures to 31 December 2001. As a result of the inclusion of the traditionally loss making months of November and December, the profit is lower than the 12 month results to 31 October 2001 and the 14 months results are therefore not directly comparable with preceding 12 month figures.

EBITDA for the 14 months was €53.5 million. Operating profit before exceptional goodwill write off for the 14 months was €24.6 million. The interest charge was €12.4 million while there was a zero tax charge.

Profit before tax and exceptional item amounted to €12.2 million for the 14 months to 31 December 2001. Adjusted earnings per share (before goodwill) was 47.5c. Turnover for the 14 months was €348.5 million. The exceptional write off of goodwill, already reported in the 12 month results, amounted to €3.2m resulting in earnings per share after goodwill charges of 33.9c.

DIVIDEND

The proposed final dividend is 11.4c per share making a total dividend for the 14 months to 31 December 2001 of 17.1c. This compares with the dividend of 14.25c paid in respect of the year to 31 October 2000. It is proposed to pay the final dividend on 31st May 2002 to shareholders on the register at the close of business on the 26th April 2002.

RESULTS FOR NOVEMBER AND DECEMBER 2001

2 Months to 31 December 2001

The carryings and detailed results for the 2 months to 31 December are set out below:

* Turnover figures have been restated to standardise presentation of all revenues.

FERRIES AND TRAVEL DIVISION

2 Months to 31 December 2001

The Ferries and Travel division includes the activities of Irish Ferries, the ferry chartering business and the travel services activities. Trading was in line with plan. Revenue was €29.2 million, passenger carryings were 191,000, cars carried amounted to 49,000 while 32,000 freight units were carried. There was an operating profit of €0.2 million in the 2 months.

12 Months to 31 October 2001 (as previously reported)

Profit before interest and exceptional charge in the division was €22.3 million (2000: €27 million) on turnover of €187.2 million (2000: €194.9 million). Passenger revenue was impacted in the Spring and Summer period by Foot & Mouth Disease. Freight revenue and chartering revenue showed no adverse impact from Foot & Mouth Disease.

It was a year of substantial change on our Irish sea routes. On the Dublin/Holyhead route, the prime sea route into the Republic of Ireland, we introduced m.v. "Ulysses" in March. The vessel won the award "Most Significant New Build Ferry" at the Cruise & Ferry awards in London in May of 2001. The 1997-built m.v. "Isle of Inishmore" was then transferred to Rosslare/Pembroke, resulting in a major upgrade in capacity and quality on that route.

Irish Ferries – Passenger Revenue

Despite the severe impact of Foot and Mouth disease on sea travel to Ireland from the UK in the period from late February to early September, a recovery in carryings in the latter weeks of the year resulted in passenger carryings overall declining by only 4% to 1.73 million passengers. On the Dublin/Holyhead route, where our DublinSwift fast ferry continues to develop its market, passenger numbers were broadly unchanged at 1.14 million while on the Rosslare/Pembroke route, where the impact of Foot and Mouth Disease was more marked, there was an 16% decline to 0.38 million passengers. On the Ireland/France route, passenger numbers were unchanged at 0.21 million. Average passenger yields across all routes for the year as a whole were up by 10%. Across our route network car carryings were 374,000 cars (2000: 400,000 cars).

Irish Ferries Roll-on Roll-off Freight Revenue

It was a record year for Roll-on Roll-off freight on both corridors of the Irish Sea with our total carryings up by 11% to 182,000 trucks. With the introduction of substantial new capacity on our m.v. "Ulysses", a 13% increase in freight units to 119,000 was achieved on the Dublin/Holyhead route.

Chartering

Revenue from the charters of the m.v. "Pride of Bilbao" and the former m.v. "St. Patrick II" were in line with the previous year.

Travel Agencies

This was a challenging year for our travel division. The impact of Foot and Mouth disease on travel to Ireland, declining commission rates across the industry, and internet development costs associated with wannabeinireland.com affected profitability. This was exacerbated by the events of September 11 th, which impacted on air travel worldwide. As a result of the above the Group has written off the goodwill incurred in the acquisition of Tara Travel in 1999. This non-cash charge amounts to €3.2 million and has been treated as an exceptional item.

CONTAINER AND TERMINAL DIVISION

2 Months to 31 December 2001

Turnover for the period was €17.5 million while the operating loss of €0.7 million for the 2 months was in line with normal seasonal patterns with the normal reduction in freight movements over the Christmas and New Year period.

12 Months to 31 October 2001 (as previously reported)

It was a year of restructuring and recovery in the Container and Terminal Division. Turnover was €115.3million (€119.5 the previous year), while an operating profit of €2.8 million was recorded compared with an operating loss of €0.6 million in 2000.

Container Lift-on Lift-off Freight

During the year our focus has been on recovery in margins in Eucon's services between Ireland and the UK and the Continent, and our dedicated feeder services Eurofeeders and Feederlink. We are engaged in a programme to restore pricing to levels which will generate an appropriate return for the group.

Total container freight volumes carried on our own services fell 7% to 365,000 twenty-foot equivalent units as we eliminated a number of marginal routes and traffic flows to strengthen our focus on higher margin business and more balanced trade flows. We also implemented tariff increases to recover cost increases we had experienced in 2000. Overall yields rose by 3%.

Terminal

During the year we eliminated some unprofitable short-sea container handling to concentrate on Continental business, which is more suited to the Lo Lo mode. As a result units handled fell by 12% to 218,000 twenty-foot equivalent units although revenue and profits increased.

FINANCE

2 Months to 31 December 2001

EBITDA during the 2 months was €5.1 million. Period end net debt amounted to €187.0 million representing gearing of 95%.

12 Months to 31 October 2001 (as previously reported)

EBITDA amounted to €48.3 million for the year to 31 October (2000: €47.8 million). Total investment in the year amounted to €95.7 million, comprising the final payments of €83.4 million on the m.v. "Ulysses" and other capital expenditure of €12.3 million. Net debt amounted to €183.5 million giving a comfortable gearing level of 92% (62% in 2000). Interest cover was 2.4 times (2000: 3.6 times). Year-end cash balances amounted to €25.1 million. Shareholders' funds at year-end amounted to €199.2 million.

Our taxation charge for the 12 months to 31 October 2001 was €0.3 million due to capital allowances arising from our investment programme.

OUTLOOK

The outlook for 2002 is promising. The introduction of m.v. "Ulysses" and the m.v. "Isle of Inishmore" on their respective routes gives us annualised additional freight capacity of approximately 60%, in a market which has shown consistent growth over many years. The impact of Foot & Mouth Disease is now behind us and we look forward to a resumption of more normal levels of passenger traffic into Ireland, particularly from the UK.

On February 26 th we announced that we had concluded two charters within our chartering division. Firstly, we have entered an agreement to charter the m.v. "Isle of Innisfree" to P&O for their Portsmouth / Cherbourg service from 1 July 2002 for 5 years. Secondly we have extended the charter of the m.v. "Pride of Bilbao" for 5 years from October 2002 when the current charter expires. These charters which will generate charter income of approximately €70m over 5 years, provide a diversified cash flow complementing our ferry operations and short sea container activities and underpin the quality of ICG's ferry fleet, one of the most modern in Europe.

Thomas C. Toner

Chairman

14 th March, 2002

Enquiries to:

Eamonn Rothwell, Managing Director

Garry O'Dea, Finance Director

At Dublin 01-6075628

Email: info@icg.ie

CONSOLIDATED PROFIT AND LOSS ACCCOUNT
For the fourteen months ended 31 December 2001

CONSOLIDATED CASH FLOW STATEMENT
For the 14 months ended 31 December 2001

CONSOLIDATED BALANCE SHEET
As at 31 December 2001

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1. Segment information

Analysis by class of business

Prior year turnover figures have been restated to standardise presentation of all revenues. Costs previously shown as central costs have been apportioned by division in the current year. The prior year figures have been restated accordingly.

Analysis by origin

2. Dividends

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

3. Earnings per share

The calculation of earnings per share is based on the weighted average number of shares in issue of 26.51m (2000: 26.35m) and profits attributable to shareholders of  9.0m (2000:  18.5m).

Diluted earnings per share is computed in accordance with FRS14 and is based on weighted average shares in issue, including options exercisable as of the date of this report of 27.0m shares (2000: 27.12m)

Adjusted earnings per share is based on the weighted average number of shares in issue of 26.51m (2000: 26.35m) and profit attributable to shareholders, before goodwill and exceptional item, of  12.6m (2000:  18.9m).

4. Accounting Policies

The accounting policies of the group were reviewed with reference to FRS18 Accounting Policies. This had no effect on the existing policies of the Group.