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QUINN-group ("the Group") notes with concern the recent speculation as regards a requirement to inject €700m into QUINN-Insurance Limited ("QIL"). This is simply not the case.

Prior to being placed in provisional administration QIL had assets exceeding liabilities of €230m, i.e.: surplus assets above what is required to pay claims and discharge other liabilities. This exceeds the EU minimum requirement albeit not meeting the Financial Regulator (FR) requirement of 150% of the minimum, due to the impact of losses on property write-downs and investments over the past two years of over €220m.

Unfortunately, due to the FR’s conclusion that guarantees provided by QIL’s subsidiaries gave rise to a potential shortfall in regulatory capital QIL was placed in provisional administration.

In order to restore the solvency position to the FR’s 150% requirement the Group estimates that a cash injection of between €100m and €150m is required. Whilst this is fresh capital it will improve the QIL net asset position and is not required to pay claims, or fill any other holes as QIL has been a profitable business. it is therefore an increase in the value of QIL.

We also note speculation that Anglo Irish Bank Limited ("Anglo") has plans to refinance some of the existing QUINN-group debt, and whilst we cannot comment on this, it is worth pointing out that any such refinancing does not increase the amount of debt within the Group, but may improve Anglo’s ranking in the debt structure.

There is therefore no basis for the €700m deficit figure which is in circulation. Both QIL and the Group are highly liquid, QIL has over €800m of cash available, QUINN-group has cash reserves of €70m and the Group generated cash profits of circa €47m in the first quarter of 2010.

Our manufacturing businesses continue to perform strongly but the knock on impact of the QIL provisional administration continuing will impact on the Group’s ability to invest and expand in the future.

The Group therefore remains focussed on pursuing all options in order to resolve the QIL situation and believes that it is in all parties’ interests that this is achieved as quickly as possible in order to:

• Maintain and protect the QIL business, particularly as it is a profitable business providing much needed employment, focussed on exported financial services.
• Maintain and protect the wider QUINN-group.
• Enable the Group to deal with all of its debt and the family companies to repay their borrowings to Anglo.

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