RNS Number:7571C
Alpha Airports Group PLC
10 May 2006


Alpha Airports Group PLC
(the "Group")


Introduction

Further to the announcement made on 25 April 2006, the issues that led to the
suspension of the Group's listing are described in more detail below.


Current Trading
     
*    The circumstances which gave rise to the withdrawal by 
     PricewaterhouseCoopers LLP ("PwC") of its approval of the preliminary 
     results announcement for the year ended 31 January 2006 of the Group did 
     not derive from any concern about the Group's cash position.

*    The Group continues to trade in the ordinary course.  It is in regular and 
     open discussions with its bankers, who are continuing to make available
     credit to the Group under its main banking facility and who have indicated 
     that it is their present intention to continue to support the Group.  There 
     are significant reserves of stock in the Group available and ready for the 
     important summer season.  The Group continues to pay all of its suppliers 
     and other creditors in full as they fall due.


Summary of the issue
     
*    The issues involved in connection with PwC's withdrawal of approval relate 
     to the Group's contractual arrangements with a customer entered into in
     October 2005.  The issues are:

      * The Group entered into new contractual arrangements with the customer
        which purported to make material changes to the structure of the
        commercial dealings between the Group and the customer in 2005/6, but
        did not significantly change the amounts payable to the Group in its
        financial year.  Material aspects of these new arrangements may not have
        been intended to have proper commercial effect and so there is a
        question about whether they were genuine transactions.

      * By entering into the new commercial arrangements in October 2005 with
        the customer, the Group consciously assisted that customer to put itself
        in a position in which it might have been able to manipulate its own
        financial statements in circumstances in which the customer's parent
        company was preparing for an initial public offering.  The Group does
        not know whether or not the customer's financial statements were in fact
        manipulated.  If those financial statements were manipulated, and
        depending on all other relevant factual circumstances, claims may or may
        not be brought against the Group.  If any valid claim were to be
        brought, the Group would seek to pursue its own claims against third
        parties.

      * PwC have expressed the view that at some stages in communications
        between certain senior personnel in the Group and PwC, the true effect
        of the new contractual arrangements was misrepresented to PwC.

     
*    In view of the seriousness of the issues, following the suspension of the 
     listing, the Board established a Special Committee of two non-executive
     directors with the full powers of the Board itself to look into and deal as 
     they see fit with all related matters.  As a first step, the Special 
     Committee instructed an independent law firm to investigate the matters 
     fully.

*    Preliminary conclusions with regard to the first and second issues are that 
     they do give rise to valid concerns.  It also appears that in entering into
     these arrangements those responsible considered them to be in the best 
     interests of the Group because the arrangements also involved a long term 
     contract.  They believed they took appropriate professional advice as to 
     the consequences for the Group and appear to have received no personal 
     gain.


Review of the Group's financial statements
     
*    The Special Committee is currently in discussions with PwC about whether 
     and on what basis they should review and express an opinion on the Group's 
     financial statements.

*    The Group has received all cash payable to it in respect of the financial 
     year ended 31 January 2006 from the relevant customer.

*    The total receipts related to the contractual arrangements under 
     investigation were approximately #7.5 million in that financial year, which 
     have been received in full.  The final accounting treatment of the 
     arrangements with the customer remains to be resolved.


Further announcements

Further announcements will be made in due course and in any event when a
conclusion has been reached as to the process for completing the audit of the
Group's financial statements and when it may be possible to lift the suspension
of trading in the Group's shares.


10 May 2006


Enquiries:

College Hill                                                     020 7457 2020
Mark Garraway
Stephen Davie




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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