PRELIMINARY STATEMENT

YEAR ENDED 31 OCTOBER 2000

Profit before tax of €19.0m at Irish Continental

In a comment, Chairman Tom Toner stated, "At the interim stage, in July, we flagged a difficult environment with the full year effect of the elimination of duty free sales, and significant increases in fuel costs and haulage. Nevertheless, in the second half we have recorded a profit before tax of €23.7 million which is only marginally down on last year's second half profits of €24.2 million. This was at the higher end of our expectations.

Over the year we invested €49 million in vessels and other infrastructure. The world's largest passenger/RoRo ferry, "Ulysses" is now virtually complete and the vessel will be delivered in February. We are also launching our web based travel site wannabeinireland.com. These developments will provide us with the platform for renewed growth. "

KEY POINTS

PRELIMINARY ANNOUNCEMENT OF RESULTS

YEAR ENDED 31 OCTOBER 2000

RESULTS FOR YEAR

The Board of Irish Continental Group, plc ("ICG" or the "Group") announces profit before tax of €19 million for the year to 31 October 2000. This compares with €26.8 million the previous year. Earnings per share were 70.0c. Turnover for the year grew by 26% to €314 million (16% if 1999 acquisitions are excluded).

The results are in line with the indications given in July with the interim statement. Operating profit for the year was €26.4 million compared with €35.4 million in 1999 reflecting the impact of the full year loss of duty free sales, higher fuel prices, the cost of new ferry capacity and new container services.

The interest charge was lower at €7.4 million (€8.6 million the previous year) while there was a taxation charge of €0.5 million.

SECOND HALF RESULTS

In the seasonally more significant second half of the year, sales rose 23% to €191 million, operating profit fell only slightly from €28.9 million last year to €27.1 million and profit before tax was €23.7 million compared with €24.2 million last year. The stability of the second half performance, which was at the higher end of our expectations, provides welcome evidence that the process of readjustment to the more difficult cost environment is being implemented successfully.

DIVIDEND

The Board recommends a proposed final dividend of €9.5c per share which, combined with the interim dividend makes a total dividend of €14.25c per share, an increase of 20%. It is proposed to pay the final dividend on 6th April 2001 to shareholders on the register at the close of business on 2nd March 2001.

FERRIES AND TRAVEL DIVISION

The Ferries and Travel division includes the activities of Irish Ferries, the ferry chartering business and the travel agencies acquired in 1999. Profit before interest in the division was €29.8 million (1999: €32.4 million) on turnover of €194.9 million (1999: €153.5 million). If the travel agencies acquired in 1999 are excluded the like for like growth in turnover was 12%.

Irish Ferries - Passenger Revenue

Despite the full year effect of the abolition of Duty Free from 1 July 1999, record passenger carryings were achieved with overall growth of 6.7% to 1.8 million passengers. On the Dublin/Holyhead route, where we had the full-year benefit of our new DUBLINSwift fast ferry, passenger numbers increased strongly by 14% to 1.15 million while on the Rosslare/Pembroke route, although there was a 8.1% decline to 0.45 million passengers (due to lower foot/coach passengers), car numbers increased on this route. On the Ireland/France route, passenger numbers grew by 5.7% to 207,000.

Overall growth in passenger numbers in the second half was 5% compared with 10% in the first half reflecting the fact that the Dublin Swift service was in a "like-for-like" comparison with the previous year from 1 July. Average passenger yields were up by 13.7%.

In the more significant area of car carryings, volumes were boosted by continued investment in marketing initiatives, including increased use of the internet (irishferries.com), throughout our key markets of Ireland and Britain. Total internet bookings via irishferries.com amounted to over €3 million from a base of €0.3 million the previous year. Across all routes car carryings grew 13% to 400,000 cars.

On the Dublin/Holyhead route, growth in car carryings of 18.7% was achieved, while growth was 6% on the Rosslare/Pembroke route. An increase of 10% in Ireland/France volumes was assisted by substantial growth in the Irish market.

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 4% to 160,800 trucks. Despite the introduction of substantial new capacity by competitors and space constraints on the m.v. "Isle of Inishmore", a 3.5% increase in freight units to 105,800 was achieved on the Dublin/Holyhead route. On the Rosslare/Pembroke route there was a 5.6% increase in carryings to 55,000 units. On the Ireland/France route, 2,900 trucks were carried compared with 3,200 the previous year.

Chartering

Revenue from the charters of the m.v. "Pride of Bilbao" and the m.v. "Ville de Sete" were higher than the previous year due to the strength of the US$ verus the Euro.

Travel Agencies/Travel Website

This was the first full year of trading in our travel division which has been rebranded under the Tara Travel name. Turnover for the year was €31.2 million (1999: €6.9 million for 3 months). Our travel site, wannabeinireland.com, which has been the focus of our investment programme in this division, is now live in the British market. This site specialises in offering a one-stop internet travel service with the ability to book air, sea, accommodation and car hire to Ireland on line from Britain and complements our traditional travel agency offering. The concept will be rolled out to other markets on a phased basis. We have also launched a business travel service offering incentive corporate and group travel under the brand ICG Travel.

Result

We were pleased to hold the reduction in operating profit in the division to €2.6 million (only 8%) in the difficult external environment. The fall, which occurred notwithstanding strong growth in ticket and freight revenue, can be attributed to the full year cost of the Dublin Swift service combined with the termination of duty free sales and continued high fuel prices. Website development costs of wannabeinireland.com have also been charged to P&L as incurred.

On board sales revenue for the year, including net franchise revenue, amounted to €20 million compared with €25 million the previous year, the reduction principally due to the absence of duty free sales. With regard to fuel, on a like for like basis fuel costs in the division were €3.5 million higher than the previous year due to higher world fuel prices.

CONTAINER AND TERMINAL DIVISION

In a very difficult year in the Container and Terminal Division turnover grew by 24% to €119.5 million, while an operating loss of €0.5 million was recorded compared with an operating profit of €5.0 million the previous year.

Container Lift-on Lift-off Freight

There was continued revenue and volume growth on Eucon's services between Ireland and the UK and the Continent, and our dedicated feeder services Eurofeeders and Feederlink. However the growth in turnover was not reflected in profitability and the outturn for the year was not satisfactory for a number of reasons. During the year we added to our route network with additional services to Bilbao and St. Petersburg, the latter in partnership with local interests. The start up costs associated with these new routes, continued high fuel costs (which were €2 million higher on a like for like basis) and higher road haulage costs, particularly in the UK, resulted in significantly lower margins. We have subsequently suspended our St. Petersburg service given the unfavourable cost environment and this will assist in the restoration of margins to closer to historical levels. We are engaged in a programme to restore pricing to levels which will generate an appropriate return for the group. In particular, additional road haulage costs will have to be passed on to our customers.

Total container freight volumes carried on our own services rose 6% to 393,000 twenty-foot equivalent units.

Terminal

During the year we benefited from buoyant container trading volumes and we achieved record volume throughput through our Dublin Port terminal, with an increase of 24% in units handled to 247,000 twenty foot equivalent units.

CORPORATE DEVELOPMENTS

The construction of the World's largest passenger/RoRo ferry (m.v. "Ulysses") which is to be introduced on our Dublin/Holyhead route in early 2001 continues in Rauma, Finland. This 50,000 tonne ferry has 4km of linear deck space for trucks (a capacity for 221 accompanied trucks) or 1,300 cars and will provide an 80% increase in our freight capacity on the Dublin/Holyhead route.

During the year we completed the purchase of the m.v. "Normandy", which we had operated on bareboat charter since January 1998, for a consideration of US$18.4 million. The vessel will undergo a planned €6 million refit in January/February 2001.

FINANCE

EBITDA amounted to €47.8 million for the year (1999: €53.0 million) and strict management of working capital resulted in cash inflow of €14.0 million (1999: €3.7 million outflow) resulting in cash flow from operating activities of €61.8 million (1999: €49.3 million). Total investment in the year amounted to €49.1 million, comprising progress payments of €18.1 million on the m.v. "Ulysses", €17.7 million on the m.v. "Normandy" and other capital expenditure of €13.3 million. Year-end net debt amounted to €123.4 million giving a comfortable gearing level of 62% (63% in 1999). Interest cover was 3.6 times (1999: 4.1 times). Year-end liquidity was strong with cash balances amounting to €59 million. Shareholders' funds at year end amounted to €197.5 million.

BOARD

Alex Mullin, Company Secretary (since 1983), and executive director since 1991, has announced his decision to retire from his executive position with effect from 31 March 2001. Alex joined the company on its formation in 1973 having previously worked in the company's then major shareholder, Irish Shipping Limited. He was centrally involved in the flotation of the company in 1988 and in the strategically important acquisition of B&I Line in 1992, following which he became Operations Director of the enlarged Group. He is also President of the Irish Chamber of Shipping and a council member of the Irish Maritime Development Office.

We acknowledge the major contribution made by Alex in the development of Irish Continental Group from inception in 1973 to being Ireland's largest shipping group. Alex has indicated his willingness to remain as a non-executive director and we welcome sharing the benefit of his experience at board level. In accordance with the Articles of Association of the company he will therefore be proposed for re-election at the Annual General Meeting, which is to be held on March 28th 2001.

CURRENT TRADING AND OUTLOOK

The combination of the abolition of intra-European duty free sales and the sustained increase in fuel prices has substantially affected the cost and margin structure of our industry. Transport costs to the end-user inevitably must rise when such a shift occurs. However, in our view, the period of adjustment to this higher level of tariffs is well underway, particularly in the ferry business, as the trading in the second half of the year showed.

We have completed the development of our travel site, wannabinireland.com, and expect it to be revenue generating within a number of weeks with excellent prospects for a roll out to other markets.

In our car passenger business, trading in the first 2 months of this year has been encouraging with good volume and yield trends. However, given the seasonality of the passenger business, trading in the second half is more significant in terms of outlook.

We are actively promoting the charter of the m.v. "Isle of Inishmore" / m.v. "Isle of Innisfree" from early summer of this year when the operational requirements of all routes have been completed.

Oil prices have recently shown welcome signs of easing. In the freight market, sustained economic growth in Ireland and consequent increases in external trade provide a favourable backdrop for RoRo and LoLo freight movements. The success of our Dublin Swift service has provided the basis for growth in our car passenger business and the planned introduction of our 50,000 tonne m.v. "Ulysses" ferry in Spring of 2001 will give us further scope and capacity to develop our freight business on our Dublin/U.K. route.

Thomas C. Toner
Chairman

16th January, 2001

Enquiries to:

Eamonn Rothwell,
Managing Director
Garry O'Dea, Finance Director

At Dublin 01-6075628

Website: www.icg.ie
Email: info@icg.ie

IRISH CONTINENTAL GROUP, PLC

CONSOLIDATE PROFIT & LOSS ACCOUNT

For the year ended 31st October 2000

IRISH CONTINENTAL GROUP, PLC

CONSOLIDATED BALANCE SHEET

As at 31st October 2000

IRISH CONTINENTAL GROUP, PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31st October 2000

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

1. SEGMENTAL INFORMATION

The segmental results of the Group are set out below:

(1) Analysis by class of businessTurnover Profit Net Assets

(2) Analysis by Origin

(2) EARNINGS PER SHARE

The calculation of earnings per share is based on the weighted average number of shares issue of 26.35 million (1999: 26.23 million) and profits attributable to shareholders of €18.5 million (1999: €26.4 million).

Diluted earnings per share is computed in accordance with FRS14 and is based on diluted weighted average shares in issue, including options exercisable as of the date of this report, of 27.12 million shares (1999: 27.13 million shares).

(3) FINANCIAL REPORTING STANDARDS

The foregoing accounts are prepared on the basis of the accounting policies set out in the 1999 Annual Report.