RNS Number:4160J
VT GROUP PLC
31 March 2003

VT Group plc





SALE OF THE WOOLSTON SHIPYARD





VT Group plc ("VT") is pleased to announce the following:





1.         An agreement has been concluded with the South East England
Development Agency ("SEEDA") for the sale to SEEDA of the Woolston Shipyard site
in Southampton which has hitherto been the principal location of VT's
shipbuilding operations.  The site has been sold for a total consideration of
#15m, of which an initial sum of #7.5 million has already been paid to VT and
further amounts will be paid progressively over the period to 31 March 2007 as
the site is developed.  All payments will be made in cash.  The consideration
figure of #15 million means that an exceptional profit will arise on its
disposal by VT of approximately #5 million over historic written down book
value.  VT will remain on site until 31 March 2004 at the latest whilst it
completes the removal of its operations to the new Portsmouth Shipbuilding
Facility.



2.         Utilising the above one-off gain, VT has agreed, in consultation with
the Trustee and the actuary, to make a contribution of #5 million to its
principal pension scheme, the Shipbuilding Industries Pension Scheme ("SIPS").
Whilst the next formal actuarial valuation of SIPS is not due until 1 April
2004, in the actuary's view it was advisable to increase contributions before
then in order to offset some of the recent losses in equity markets. The
position will be kept under review.



3          SEEDA have stated that their acquisition of this site for development
will have a significant impact on the regeneration of Woolston by providing new
business, housing and employment opportunities. They expect the creation of at
least 1,200 jobs once the potential of this large and complex site has been
fully realised.





            31/03/03




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