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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001021231-03-000235.txt : 20030218
<SEC-HEADER>0001021231-03-000235.hdr.sgml : 20030217
<ACCEPTANCE-DATETIME>20030218085102
ACCESSION NUMBER:		0001021231-03-000235
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20020930
FILED AS OF DATE:		20030218

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIX CONTINENTS PLC
		CENTRAL INDEX KEY:			0000858446
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				250420260
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10409
		FILM NUMBER:		03570056

	BUSINESS ADDRESS:	
		STREET 1:		20 NORTH AUDLEY ST
		CITY:			LONDON WIY 1WE ENGLA
		STATE:			X0
		ZIP:			32822
		BUSINESS PHONE:		4045513500

	MAIL ADDRESS:	
		STREET 1:		20 NORTH AUDLEY ST
		STREET 2:		-
		CITY:			LONDON ENGLAND
		STATE:			X0
		ZIP:			W1Y 1WE
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>b690316-20f.htm
<TEXT>
<html>
<head>
    <title>Prepared and filed by St Ives Burrups</title>
</head>
<body>






<a name="p?"></a>
<p>&nbsp;</p>
<font face="serif" size="2"><sup><hr size="3" noshade color="#000000" style="margin-top: -15px">
<hr size="1" noshade color="#000000" style="margin-top: -22px">
</sup></font>
<p align=center><font face="serif" size="5"><b>SECURITIES AND EXCHANGE COMMISSION</b></font><br>
  <font face="serif" size="3"><b>Washington, D.C. 20549</b></font>
<hr width="150" size="2">

<p align="center"><font face="serif" size="5"><b>FORM 20-F</b></font><br>
</p>

<p align=left><font face="serif" size="2">(Mark One)<br>
<br>
</font><font face="serif" size="2"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
<p align=center><font face="serif" size="2">or</font></p>
<p><font face="serif" size="2"><img src="tickedbox.gif">&nbsp;&nbsp;&nbsp;ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
<p align=center><font face="serif" size="2">For the fiscal year ended: September
  30, 2002</font></p>
<p align=center><font face="serif" size="2">or</font></p>
<p><font face="serif" size="2"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
<p align=center><font face="serif" size="2">Commission file number: 1-10409</font></p>
<p align=center><font face="serif" size="2"><b><font size=5>SIX CONTINENTS PLC</font></b></font><br>
<font face="serif" size="2"><b>(Exact name of Registrant as specified in its charter)</b></font></p>
<p align=center><font face="serif" size="2"><b>England and Wales</b></font><br>
<font face="serif" size="2"><b>(Jurisdiction of incorporation or organization)</b></font></p>
<p align=center><font face="serif" size="2"><b>20 North Audley Street,</b></font><br>
<font face="serif" size="2"><b>London W1K 6WN</b></font><br>
<font face="serif" size="2"><b>(Address of principal executive offices)</b></font></p>
<p align=left><font face="serif" size="2">Securities registered or to be registered
  pursuant to Section 12(b) of the Act:</font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%">
        <div align="center"><font face="serif" size="2"><b><u>Title of each class</u></b></font></div>
      </div></td>
    <td align=center valign=bottom><font face="serif" size="2"><b>Name of each
      exchange<br>
      <u>on which registered</u></b></font></td>
  </tr>
    <tr valign=bottom>
    <td><div align="center" style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">American
        Depositary Shares</font></div></td>
    <td align=center valign=bottom><font face="serif" size="2">New York Stock
      Exchange</font></td>
  </tr>
  <tr valign=bottom>
    <td><div align="center" style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Ordinary
        Shares of 28p each</font></div></td>
    <td align=center valign=bottom><font face="serif" size="2">New York Stock
      Exchange*</font></td>
  </tr>
</table>
<p><font face="serif" size="2">
<hr noshade size="1" align="left" width="100">
</font>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities registered or to be registered pursuant to Section 12(g) of the Act: None</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock as of the close of the period covered by the annual report:</font></p>
<div align="center">
  <p><font face="serif" size="2">Ordinary Shares of 28p each</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif" size="2">866,610,019</font></p>
</div>
<hr width="150" size="2">
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check
  mark whether the registrant (1) has filed all reports required to be filed by
  Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
  12 months (or for such shorter period that the Registrant was required to file
  such reports) and (2) has been subject to such filing requirements for the past
  90&nbsp;days:</font></p>
<p align="center"><font face="serif" size="2">Yes&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;<img src="emptybox.gif"></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark which financial statement item the registrant has elected to follow:</font></p>
<p align="center"><font face="serif" size="2">Item 17&nbsp;&nbsp;&nbsp;<img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item
  18&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif"></font></p>
<p><font face="serif" size="2"><hr size="1" noshade color="#000000" style="margin-top: -15px">
<hr size="3" noshade color="#000000" style="margin-top: -25px">
</font><p></p>
<p></p>
<p></p>
<div style="page-break-before:always"></div>
<page>
<a name="p2"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>[THIS PAGE INTENTIONALLY LEFT BLANK]</b></font></p>
<p></p>
<p align=center><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p3"></a>
<p align="center"><font face="serif" size="2"><b><a name="contents"></a>TABLE
  OF CONTENTS</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align=right valign=top>
    <td colspan=3><font face="serif" size="2"><b><u>Page</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=2><a href="#p5"><font face="serif" size="2">Introduction</font></a></td>
    <td valign=bottom><div align="right"><a href="#p5"><font face="serif" size="2">5</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=2><a href="#p6a"><font face="serif" size="2">Cautionary Note Regarding
      Forward-Looking Statements</font></a></td>
    <td valign=bottom><div align="right"><a href="#p6a"><font face="serif" size="2">6</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align=center valign=top>
    <td colspan=3><font face="serif" size="2"><b>PART I</b></font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p7"><font face="serif" size="2">Item
        1.</font></a></div></td>
    <td valign=bottom><a href="#p7"><font face="serif" size="2">Identity of Directors,
      Senior Management and Advisors</font></a></td>
    <td valign=bottom><div align="right"><a href="#p7"><font face="serif" size="2">7</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p7a"><font face="serif" size="2">Item
        2.</font></a></div></td>
    <td valign=bottom><a href="#p7a"><font face="serif" size="2">Offer Statistics
      and Expected Timetable</font></a></td>
    <td valign=bottom><div align="right"><a href="#p7a"><font face="serif" size="2">7</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p7b"><font face="serif" size="2">Item
        3.</font></a></div></td>
    <td valign=bottom><a href="#p7b"><font face="serif" size="2">Key Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p7b"><font face="serif" size="2">7</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p7c"><font face="serif" size="2">Selected Consolidated
      Financial Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p7c"><font face="serif" size="2">7</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p11a"><font face="serif" size="2">Risk Factors</font></a></td>
    <td valign=bottom><div align="right"><a href="#p11a"><font face="serif" size="2">11</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p19a"><font face="serif" size="2">Item
        4.</font></a></div></td>
    <td valign=bottom><a href="#p19a"><font face="serif" size="2">Information
      on the Company</font></a></td>
    <td valign=bottom><div align="right"><a href="#p19a"><font face="serif" size="2">19</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p19b"><font face="serif" size="2">Summary</font></a></td>
    <td valign=bottom><div align="right"><a href="#p19b"><font face="serif" size="2">19</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p22"><font face="serif" size="2">Segmental Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p22"><font face="serif" size="2">22</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p24"><font face="serif" size="2">Hotels &#150;
      Six Continents Hotels</font></a></td>
    <td valign=bottom><div align="right"><a href="#p24"><font face="serif" size="2">24</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p39a"><font face="serif" size="2">Soft Drinks
      &#150; The Britvic Group</font></a></td>
    <td valign=bottom><div align="right"><a href="#p39a"><font face="serif" size="2">39</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p42a"><font face="serif" size="2">Retail &#150;
      Six Continents Retail</font></a></td>
    <td valign=bottom><div align="right"><a href="#p42a"><font face="serif" size="2">42</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p55a"><font face="serif" size="2">Other Activities</font></a></td>
    <td valign=bottom><div align="right"><a href="#p55a"><font face="serif" size="2">55</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p56"><font face="serif" size="2">Trademarks</font></a></td>
    <td valign=bottom><div align="right"><a href="#p56"><font face="serif" size="2">56</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p56a"><font face="serif" size="2">Organizational
      Structure</font></a></td>
    <td valign=bottom><div align="right"><a href="#p56a"><font face="serif" size="2">56</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p57"><font face="serif" size="2">Property, Plant
      and Equipment</font></a></td>
    <td valign=bottom><div align="right"><a href="#p57"><font face="serif" size="2">57</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p57a"><font face="serif" size="2">Environment</font></a></td>
    <td valign=bottom><div align="right"><a href="#p57a"><font face="serif" size="2">57</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p58a"><font face="serif" size="2">Item
        5.</font></a></div></td>
    <td valign=bottom><a href="#p58a"><font face="serif" size="2">Operating and
      Financial Review and Prospects</font></a></td>
    <td valign=bottom><div align="right"><a href="#p58a"><font face="serif" size="2">58</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p58b"><font face="serif" size="2">Critical Accounting
      Policies Under UK GAAP and US GAAP</font></a></td>
    <td valign=bottom><div align="right"><a href="#p58b"><font face="serif" size="2">58</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p59a"><font face="serif" size="2">Operating Results</font></a></td>
    <td valign=bottom><div align="right"><a href="#p59a"><font face="serif" size="2">59</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p71a"><font face="serif" size="2">Liquidity and
      Capital Resources</font></a></td>
    <td valign=bottom><div align="right"><a href="#p71a"><font face="serif" size="2">71</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p75"><font face="serif" size="2">Trend Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p75"><font face="serif" size="2">75</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p77"><font face="serif" size="2">Item
        6.</font></a></div></td>
    <td valign=bottom><a href="#p77"><font face="serif" size="2">Directors, Senior
      Management and Employees</font></a></td>
    <td valign=bottom><div align="right"><a href="#p77"><font face="serif" size="2">77</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p77"><font face="serif" size="2">Directors and
      Senior Management</font></a></td>
    <td valign=bottom><div align="right"><a href="#p77"><font face="serif" size="2">77</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p78a"><font face="serif" size="2">Compensation</font></a></td>
    <td valign=bottom><div align="right"><a href="#p78a"><font face="serif" size="2">78</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p80"><font face="serif" size="2">Board Practices</font></a></td>
    <td valign=bottom><div align="right"><a href="#p80"><font face="serif" size="2">80</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p81"><font face="serif" size="2">Employees</font></a></td>
    <td valign=bottom><div align="right"><a href="#p81"><font face="serif" size="2">81</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p82"><font face="serif" size="2">Share Ownership</font></a></td>
    <td valign=bottom><div align="right"><a href="#p82"><font face="serif" size="2">82</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p82a"><font face="serif" size="2">Item
        7.</font></a></div></td>
    <td valign=bottom><a href="#p82a"><font face="serif" size="2">Major Shareholders
      and Related Party Transactions</font></a></td>
    <td valign=bottom><div align="right"><a href="#p82a"><font face="serif" size="2">82</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p82b"><font face="serif" size="2">Major Shareholders</font></a></td>
    <td valign=bottom><div align="right"><a href="#p82b"><font face="serif" size="2">82</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p82c"><font face="serif" size="2">Related Party
      Transactions</font></a></td>
    <td valign=bottom><div align="right"><a href="#p82c"><font face="serif" size="2">82</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p83"><font face="serif" size="2">Item
        8.</font></a></div></td>
    <td valign=bottom><a href="#p83"><font face="serif" size="2">Financial Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p83"><font face="serif" size="2">83</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p83"><font face="serif" size="2">Consolidated
      Statements and Other Financial Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p83"><font face="serif" size="2">83</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p83a"><font face="serif" size="2">Significant
      Changes</font></a></td>
    <td valign=bottom><div align="right"><a href="#p83a"><font face="serif" size="2">83</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p83b"><font face="serif" size="2">Item
        9.</font></a></div></td>
    <td valign=bottom><a href="#p83b"><font face="serif" size="2">The Offer and
      Listing</font></a></td>
    <td valign=bottom><div align="right"><a href="#p83b"><font face="serif" size="2">83</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p85"><font face="serif" size="2">Plan of Distribution</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p85a"><font face="serif" size="2">Selling Shareholders</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85a"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p85b"><font face="serif" size="2">Dilution</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85b"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p85c"><font face="serif" size="2">Expenses of
      the Issue</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85c"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p85d"><font face="serif" size="2">Item
        10.</font></a></div></td>
    <td valign=bottom><a href="#p85d"><font face="serif" size="2">Additional Information</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85d"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p85e"><font face="serif" size="2">Memorandum and
      Articles of Association</font></a></td>
    <td valign=bottom><div align="right"><a href="#p85e"><font face="serif" size="2">85</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p88"><font face="serif" size="2">Material Contracts</font></a></td>
    <td valign=bottom><div align="right"><a href="#p88"><font face="serif" size="2">88</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p89"><font face="serif" size="2">Exchange Controls</font></a></td>
    <td valign=bottom><div align="right"><a href="#p89"><font face="serif" size="2">89</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p89a"><font face="serif" size="2">Taxation</font></a></td>
    <td valign=bottom><div align="right"><a href="#p89a"><font face="serif" size="2">89</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td valign=bottom><a href="#p92a"><font face="serif" size="2">Documents on
      Display</font></a></td>
    <td valign=bottom><div align="right"><a href="#p92a"><font face="serif" size="2">92</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p92b"><font face="serif" size="2">Item
        11.</font></a></div></td>
    <td valign=bottom><a href="#p92b"><font face="serif" size="2">Quantitative
      and Qualitative Disclosures About Market Risk</font></a></td>
    <td valign=bottom><div align="right"><a href="#p92b"><font face="serif" size="2">92</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p94a"><font face="serif" size="2">Item
        12.</font></a></div></td>
    <td valign=bottom><a href="#p94a"><font face="serif" size="2">Description
      of Securities Other Than Equity Securities</font></a></td>
    <td valign=bottom><div align="right"><a href="#p94a"><font face="serif" size="2">94</font></a></div></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">3</font></p>
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<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr align=right valign=top>
    <td colspan=3><font face="serif" size="2"><b><u>Page</u></b></font></td>
  </tr>
  <tr align=center valign=top>
    <td colspan=3><font face="serif" size="2"><b>PART II</b></font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p95"><font face="serif" size="2">Item
        13.</font></a></div></td>
    <td valign=bottom><a href="#p95"><font face="serif" size="2">Defaults, Dividend
      Arrearages and Delinquencies</font></a></td>
    <td valign=bottom><div align="right"><a href="#p95"><font face="serif" size="2">95</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p95a"><font face="serif" size="2">Item
        14.</font></a></div></td>
    <td valign=bottom><a href="#p95a"><font face="serif" size="2">Material Modifications
      to the Rights of Security Holders and Use of Proceeds</font></a></td>
    <td valign=bottom><div align="right"><a href="#p95a"><font face="serif" size="2">95</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p95b"><font face="serif" size="2">Item
        15.</font></a></div></td>
    <td valign=bottom><a href="#p95b"><font face="serif" size="2">Controls and
      Procedures</font></a></td>
    <td valign=bottom><div align="right"><a href="#p95b"><font face="serif" size="2">95</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p95c"><font face="serif" size="2">Item
        16.</font></a></div></td>
    <td valign=bottom><a href="#p95c"><font face="serif" size="2">Reserved</font></a></td>
    <td valign=bottom><div align="right"><a href="#p95c"><font face="serif" size="2">95</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr align=center valign=top>
    <td colspan=3><font face="serif" size="2"><b>PART III</b></font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p96"><font face="serif" size="2">Item
        17.</font></a></div></td>
    <td valign=bottom><a href="#p96"><font face="serif" size="2">Financial Statements</font></a></td>
    <td valign=bottom><div align="right"><a href="#p96"><font face="serif" size="2">96</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p96a"><font face="serif" size="2">Item
        18.</font></a></div></td>
    <td valign=bottom><a href="#p96a"><font face="serif" size="2">Financial Statements</font></a></td>
    <td valign=bottom><div align="right"><a href="#p96a"><font face="serif" size="2">96</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p97"><font face="serif" size="2">Item
        19.</font></a></div></td>
    <td valign=bottom><a href="#p97"><font face="serif" size="2">Exhibits</font></a></td>
    <td valign=bottom><div align="right"><a href="#p97"><font face="serif" size="2">97</font></a></div></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">4</font></p>
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<p align=center><font face="serif" size="2"><b>INTRODUCTION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  used in this document, except as the context otherwise requires, the terms:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Company&#148; and &#147;Six Continents PLC&#148; refer to Six Continents PLC or, where appropriate, the Company&#146;s board of directors;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Six Continents&#148;, &#147;Six Continents Group&#148; or &#147;Group&#148; are used for convenience to refer to the Company and its subsidiaries;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;board&#148; refers to the board of directors of Six Continents PLC;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;ordinary share&#148; or &#147;share&#148; refer to the ordinary shares of 28p each of the Company;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;SCH&#148; or &#147;Six Continents Hotels&#148; refers to the hotels segment of the Company;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;SCR&#148; or &#147;Six Continents Retail&#148; refers to the retail segment of the Company;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Britvic&#148; refers to Britannia Soft Drinks Limited;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Soft Drinks&#148; or &#147;Britvic Group&#148; refers to the soft drinks business of Six Continents, which the Company has through its controlling interest in Britvic;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;SCPD&#148; refers to Six Continents&#146; property development business, Standard Commercial Property Developments Limited;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Beer Orders&#148; refers to the Supply of Beer (Tied Estate) Order 1989 and the Supply of Beer (Loan Ties, Licensed Brewers and Wholesale Prices) Order 1989;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;VAT&#148; refers to UK Value Added Tax levied by HM Customs &amp; Excise on certain goods and services;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;Separation Transaction&#148; or &#147;Separation&#148; refers to the completion of the proposed transaction announced by Six Continents on October 1, 2002: (i) to separate Six Continents Hotels and Soft Drinks from Six Continents Retail and (ii) to return approximately &pound;700 million of capital, or 81p per existing share in cash, to its shareholders, absent a material change in circumstances in the trading environment or capital markets (herein referred to as the &#147;Return of Capital&#148;). The Separation will result in two separately listed holding companies, Mitchells &amp; Butlers PLC (&#147;M and B&#148;), which will be the holding company for Six Continents Retail and SCPD, and InterContinental Hotels Group PLC (&#147;InterContinental PLC&#148;) which will be the holding company for Six Continents Hotels and Soft Drinks;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;InterContinental Group&#148; refers to InterContinental PLC and those companies which will become its subsidiaries or its subsidiary undertakings upon completion of Separation, and &#147;InterContinental&#148; refers to the specific registered brand; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;M and B Group&#148; refers to M and B and those companies which will become its subsidiaries or its subsidiary undertakings upon completion of Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company publishes its Consolidated Financial Statements expressed in UK pounds sterling. In this document, references to &#147;US dollars&#148;, &#147;US$&#148;, &#147;$&#148; or &#147;&cent;&#148; are to United States (&#147;US&#148;)  currency, references to &#147;euro&#148; or &#147;&#128;&#148; are to the euro, the currency of the European Economic and Monetary Union and references to &#147;pounds sterling&#148;, &#147;sterling&#148;, &#147;&pound;&#148;, &#147;pence&#148; or &#147;p&#148; are to UK  currency. Solely for convenience, this Annual Report on Form 20-F contains translations of certain pound sterling amounts into US&nbsp;dollars at specified rates. These translations should not be  construed as representations that the pound sterling amounts actually represent such US dollar amounts or could be converted into US dollars at the rates indicated. Unless otherwise indicated, the  translations of pounds sterling into US dollars have 
been made at the rate of  &pound;1.00 = $1.57, the noon buying rate in The City of New York for cable transfers in pounds sterling as certified for  customs purposes by the Federal Reserve Bank of New York (the &#147;Noon Buying Rate&#148;) on September 30, 2002. On February 10, 2003 the Noon Buying Rate was &pound;1.00 = $1.63. For information  regarding rates of exchange between pounds sterling and US dollars from fiscal 1998 to the present, see &#147;Item 3. Key Information &#150; Exchange Rates&#148;.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s fiscal year ends on September 30 of each year. After Separation, Six Continents PLC will be a wholly-owned subsidiary of InterContinental PLC. InterContinental PLC&#146;s  fiscal year will end on December 31</font></p>
<p></p>
<p align=center><font face="serif" size="2">5</font></p>
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<p><font face="serif" size="2">of each year, commencing with the period ending December&nbsp;31, 2003. The December 31 fiscal year end is in line with the standard  calendar accounting year ends of the majority of comparable US and European hotel companies. References in this document to a  particular year are to the fiscal year unless otherwise indicated. For example, references to the fiscal year ended September 30, 2002 are  shown as 2002, and other fiscal years in a similar manner.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References in this document to the &#147;Companies Act&#148; mean the Companies Act 1985, as amended, of Great&nbsp;Britain; references to the &#147;EU&#148; mean the European Union. References in this  document to &#147;UK&#148; refer to the United Kingdom of Great Britain and Northern Ireland.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Consolidated Financial Statements are prepared on the basis of accounting principles generally accepted in the United Kingdom (&#147;UK GAAP&#148;) which differ from those  generally accepted in the United States (&#147;US GAAP&#148;). The significant differences applicable to Six Continents are explained in Note 32 of Notes to the Financial Statements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company furnishes The Bank of New York, as Depositary, with annual reports containing Consolidated Financial Statements and an independent auditor&#146;s opinion thereon. These  Financial Statements are prepared on the basis of UK GAAP. The annual reports contain reconciliations to US&nbsp;GAAP of net income and shareholders&#146; equity. The Company also furnishes the  Depositary with semi-annual reports prepared in conformity with UK GAAP, which contain unaudited interim consolidated financial information. Upon receipt thereof, the Depositary mails all such  reports to recorded holders of American Depositary Receipts (&#147;ADRs&#148;) evidencing American Depositary Shares (&#147;ADSs&#148;). The Company also furnishes to the Depositary all notices of  shareholders&#146; meetings and other reports and communications that are made generally available to shareholders of the Company. The Depositary makes such notices, reports and communications 
 available for inspection by recorded holders of ADRs and mails to all recorded holders of ADRs notices of shareholders&#146; meetings received by the Depositary. The Company is not required to report  quarterly financial information.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p6a"></a>CAUTIONARY NOTE
  REGARDING FORWARD-LOOKING STATEMENTS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Form 20-F contains certain forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 with respect to the financial condition, results of operations and  business of the Group and certain of the plans and objectives of the board of directors of Six Continents with respect thereto. These forward-looking statements can be identified by the fact that they  do not relate only to historical or current facts. Forward-looking statements often use such words as &#147;anticipate&#148;, &#147;target&#148;, &#147;expect&#148;, &#147;estimate&#148;, &#147;intend&#148;, &#147;plan&#148;, &#147;goal&#148;, &#147;believe&#148; or other words  of similar meaning. Such statements in the Form 20-F include, but are not limited to, statements under the following headings: (i) &#147;Item 4. Information on the Company&#148;; (ii) &#147;Item 5. Operating and  Financial Review and Prospects&#148;; (iii) &#147;Item 8. Financial Informa
tion&#148;; and (iv) &#147;Item 11. Quantitative and Qualitative Disclosures About Market Risk&#148;. Specific risks faced by the Company are  described under &#147;Item 3. Key Information &#150; Risk Factors&#148; on pages 11 to 19. By their nature, forward-looking statements involve risk and uncertainty, and the factors described in the context of such  forward-looking statements in this Form 20-F could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. These factors  include, among others, the effect of international economic conditions and unforeseen external events on the business, the ability to recruit and retain key personnel, the risks involved with  developing and employing new technologies, possible regulatory changes or actions, the Group&#146;s ability to purchase adequate insurance, the risks involved with the Group&#146;s reliance on brands and  protection of intellectual property rights and the reliance on consumer
 perception of its brands, the effect of changes in tax legislation, the future balance between supply and demand for the Group&#146;s  hotel and pubs and restaurants, the availability of hotel properties to be acquired or operated by franchisees or by the Group under management contracts, possible problems with the Group&#146;s  centralized services, possible regulatory changes or actions, changes imposed by the emergence of internet-based travel reservation systems, possible product contamination in the soft drinks  business, the risk of reliance on suppliers, the effect of adverse weather conditions on demand in the soft drinks business, the ability to access the capital markets for future capital needs or risks  associated with funding the defined benefits under its pension schemes, and the effect of fluctuations in the US dollar/UK pound sterling exchange rate on the price of Company ADSs and the US  dollar value of any dividends. Further, particular consideration should be given to the ongoing politica
l uncertainties and specifically the threat of conflict in the Middle East which could adversely  affect the financial condition of the Group.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">6</font></p>
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<p align=center><font face="serif" size="2"><b>PART I</b></font></p>
<p><font face="serif" size="2"><b>ITEM 1.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p><font face="serif" size="2"><b><a name="p7a"></a>ITEM 2.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>OFFER
  STATISTICS AND EXPECTED TIMETABLE</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p><font face="serif" size="2"><b><a name="p7b"></a>ITEM 3.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>KEY
  INFORMATION</b></font></p>
<p align=center><font face="serif" size="2"><b><a name="p7c"></a>SELECTED CONSOLIDATED
  FINANCIAL INFORMATION</b></font></p>
<p><font face="serif" size="2"><b>Summary</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selected consolidated financial data set forth below are derived from Consolidated Financial Statements of the Group, which have been audited by its independent auditors, Ernst &amp; Young  LLP, restated where appropriate to accord with the Group&#146;s current accounting policies and presentation. The selected consolidated financial data set forth below should be read in conjunction with,  and are qualified in their entirety by reference to, the Consolidated Financial Statements and Notes thereto included elsewhere in this Annual Report.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group prepares its Consolidated Financial Statements in accordance with UK GAAP which differ in certain respects from US GAAP. A description of the significant differences and  reconciliations of net income and shareholders&#146; equity are set forth in Note 32 of Notes to the Financial Statements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 1, 2002, Six Continents PLC announced its intention to separate Six Continents Retail from Six Continents Hotels and Soft Drinks. Under UK GAAP Six Continents Retail is  treated as a continuing operation in these financial statements, whereas under US GAAP it is treated as a discontinued operation. Discontinued operations under UK GAAP and US GAAP include the  results of the leased pub business which was sold in 1998.</font></p>
<p></p>
<p align=center><font face="serif" size="2">7</font></p>
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<p><font face="serif" size="2"><b>Consolidated Profit and Loss Account Data</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b> (1)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002 </b>(2)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br> restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>1999<br> restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>1998<br> restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>$</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(In millions, except per ordinary share and ADS amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Amounts in accordance with UK GAAP</b> (3)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Turnover:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,675</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,731</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,576</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,878</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,675</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,686</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total operating profit before operating exceptional items:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">970</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">664</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">572</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">160</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">970</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">824</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">758</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating exceptional items:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(121</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(121</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total operating profit:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">849</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">664</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">572</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">160</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">849</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">824</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">758</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non-operating exceptional items:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(112</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">267</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(112</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit on ordinary activities before interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">932</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">594</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">712</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">948</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">182</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest payable and similar charges</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(276</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(176</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(224</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(209</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(188</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(167</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit before taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">838</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">534</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">690</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,049</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">572</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">851</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(82</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(52</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(223</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(342</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(190</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(223</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority equity interests</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(39</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">457</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">443</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">374</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">623</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Per ordinary share:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83.2</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">193.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46.9</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82.7</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">192.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46.5</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">74.6</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted: pre-FRS 15 (5)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60.8</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;post-FRS 15 (5)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66.6</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.2</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.5</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55.4</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Amounts in accordance with US GAAP</b> (6)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">173</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(28</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations: (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">270</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">172</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">491</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">313</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">303</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Surplus on disposal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">268</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">245</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">711</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">453</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">275</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">958</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Basic net income per ordinary share and American Depositary Share (7)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.1</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.8</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3.6</font></td>
    <td valign=bottom><font face="serif" size="2">)p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62.3</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59.8</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82.4</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.5</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81.9</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">194.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.5</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">115.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Diluted net income per ordinary share and American Depositary Share (7)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19.9</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3.6</font></td>
    <td valign=bottom><font face="serif" size="2">)p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations (4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62.0</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.5</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">176.9</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">99.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81.9</font></td>
    <td valign=bottom><font face="serif" size="2">&cent;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.2</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81.4</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">193.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td><font face="serif" size="2"><i>Footnotes on following page.</i></font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">8</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p9"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>Consolidated Balance Sheet Data</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30 </b>(1)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>1999</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>1998</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002 </b>(2)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>restated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>$</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>&pound;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(In millions)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Amounts in accordance with UK GAAP</b>&nbsp;(3)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Intangible assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">272</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">173</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tangible assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,996</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,683</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,794</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,870</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">391</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">528</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">706</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,595</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,016</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,684</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,405</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,396</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,254</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,972</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current liabilities (8)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,569</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,009</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,604</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,803</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Long-term debt (8)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">991</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">631</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,019</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,886</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Share capital</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">382</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">241</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">271</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Shareholders&#146; funds</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,425</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,131</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,076</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,350</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td colspan=9><font face="serif" size="2"><b>Amounts in accordance with US GAAP </b>(6)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Intangible assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,032</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,568</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,764</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,594</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,572</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tangible assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,552</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,343</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,211</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,956</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">297</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">205</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">254</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">603</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,504</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">958</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,202</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,796</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,438</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,437</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,119</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,267</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,514</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,748</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,568</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current liabilities (8)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,311</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,461</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,595</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Long-term debt (8)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">977</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">622</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">779</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">822</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Redeemable preference share<br> capital</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Share capital</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">382</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Shareholders&#146; equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,473</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,034</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,975</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,725</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The results for fiscal 1999 include 53 weeks&#146;
      trading (Six Continents Hotels 12 months); all other fiscal years include
      52 weeks&#146; trading (Six Continents Hotels 12 months).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">US dollar amounts have been translated at the Noon Buying Rate on September 30, 2002 of &pound;1.00&nbsp;=&nbsp;$1.57 solely for convenience.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(3)</font></td>
    <td><font face="serif" size="2">Fiscal 2001, 2000, 1999 and 1998 restated on the adoption of FRS 19 (see Note 1 of Notes to the Financial Statements).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(4)</font></td>
    <td><font face="serif" size="2">For the purposes of UK GAAP, discontinued operations comprise Bass Brewers, Gala, Coral, Barcrest, BLMS and the leased pub business. Under US GAAP, discontinued operations comprise Bass Brewers, Gala, Coral, Barcrest, BLMS and the Retail business (including the leased pub business) to be separated.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(5)</font></td>
    <td><font face="serif" size="2">Adjusted earnings per share are disclosed in order to show performance undistorted by abnormal items or, in respect of Financial Reporting Standard 15, the impact of adopting this Standard.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(6)</font></td>
    <td><font face="serif" size="2">Fiscal 2001 restated to reflect adjustments to profit on disposal of fixed assets and change in fair value of derivatives (see Note 32 of Notes to the Financial Statements).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(7)</font></td>
    <td><font face="serif" size="2">Each American Depositary Share represents one ordinary share.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(8)</font></td>
    <td><font face="serif" size="2">Long-term debt under UK GAAP includes amounts supported by long-term facilities, which are classified as current liabilities under US GAAP.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">9</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p10"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>Dividends</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, the Company has paid dividends on its ordinary shares each year since its formation in 1967.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As announced on October 1, 2002, Six Continents intends to pay an interim dividend of 6.6p per existing Six Continents share for the period prior to the Separation. This dividend will be the  last dividend paid by Six Continents to existing Company shareholders and is expected to be paid on April 9, 2003. This is earlier than the usual payment date of July 31, 2003 in order to allow the  dividend to be paid by Six Continents prior to the Separation. Any dividends thereafter will be payable by InterContinental Hotels Group PLC and Mitchells &amp; Butlers&nbsp;PLC.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;InterContinental Hotels Group PLC intends to recommend that an interim dividend and a final dividend for 2003, together totaling 13.5p per new ordinary share, be declared. The interim  dividend is expected to be payable in October 2003 and the final dividend in June 2004. The final dividend is expected to account for around 70% of the total annual dividend per share. Thereafter, it  is envisaged that an interim dividend will be paid by InterContinental Hotels Group PLC in October and a final dividend in May of each year. This differs from the current Six Continents payment  schedule due to the change of accounting year end from September 30&nbsp;to&nbsp;December&nbsp;31. InterContinental Hotels Group PLC intends to establish a progressive dividend policy that is appropriate to  the strategies for the InterContinental Group and will seek to grow dividends in real terms from the base of 13.5p as indicated above and to build cover over time as the hot
el cycle improves.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mitchells &amp; Butlers PLC intends to recommend a final 2003 dividend of 5.65p and a 2004 interim dividend of 2.85p, making the 8.5p per ordinary share announced on October 1, 2002.  Mitchells &amp; Butlers PLC intends to recommend a 2004 final dividend of 6.65p, an increase of 18% over the 2003 final (making a total dividend of 9.5p in respect of Mitchells &amp; Butlers PLC first full  fiscal year to September 2004). Thereafter, Mitchells &amp; Butlers PLC intends to adopt a progressive dividend policy to deliver real growth in dividends from the level established in 2004.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding this expectation, the payment of any further dividends will depend upon the earnings and financial condition of InterContinental PLC and Mitchells &amp; Butlers PLC and such  other factors as the relevant board of directors deems pertinent.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the amounts of interim, final and total dividends on each ordinary share in respect of each fiscal year indicated. For the purposes of showing the dollar amounts per  ADS, such amounts are before deduction of UK withholding tax (as described under &#147;Item 10. Additional Information &#151; Taxation&#148;) and are translated into US dollars per ADS at the Noon Buying  Rate on each of the respective UK payment dates. However, dividends paid in US dollars by the Depositary may be based on a market exchange rate other than the Noon Buying Rate.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Pence per ordinary share</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>$ per ADS</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Year ended September 30</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Interim</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Final</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Interim</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Final</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font>
      <hr align="left" width="110" size="1" noshade></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr size="1" noshade></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1998 (1)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;9.10</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.90</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30.00</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.188</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.438</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.626</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;9.80</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.50</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32.30</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.159</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.362</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.521</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.10</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23.20</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33.30</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.151</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.341</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.492</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.40</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23.90</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.30</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.150</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.344</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.494</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2002 (2)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.70</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.60</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.30</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.174</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.401</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.575</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The 1998 dividends have been increased by
      the amount of the tax credit to which a US ADR holder was entitled prior
      to the abolition of advance corporation tax in 1999.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">The final dividend in respect of fiscal 2002 has been translated at the Noon Buying Rate on February&nbsp;10, 2003 of &pound;1.00=US$1.63.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposed 2002 final dividend and 2003 interim dividend of Six Continents and any interim and final dividends of InterContinental PLC and M and B will be paid in pounds sterling and  exchange rate fluctuations will affect the US dollar amount received by holders of ADRs on conversion of such dividends. Moreover, fluctuations in the exchange rates between pounds sterling and  the US dollar will affect the dollar equivalent of</font></p>
<p></p>
<p align=center><font face="serif" size="2">10</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">the pounds sterling price of the ordinary shares on the London Stock Exchange and, as a result, are likely to affect the market price of the  ADSs which are evidenced by ADRs in the United States.</font></p>
<p><font face="serif" size="2"><b>Exchange Rates</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables show, for the periods and dates indicated, certain information regarding the exchange rate for pounds sterling, based on the Noon Buying Rate for pounds sterling  expressed in US dollars per &pound;1.00. The exchange rate on February 10, 2003 was &pound;1.00 = US$1.63.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Month</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Month&#146;s
      Highest<br>
      Exchange Rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Month&#146;s
      Lowest<br>
      Exchange Rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td>
      <hr align="left" width="60" size="1" noshade></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">February
        2003 (through February 10, 2003)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.65</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.63</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">January
        2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.65</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.60</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">December
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.61</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.56</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">November
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.59</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.54</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">October
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.57</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.54</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">September
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.57</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.53</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">August
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.57</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.52</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td colspan=2 align=center valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align=center valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align=center valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 align=center valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Year
        ended September</b>&nbsp;<b>30</b></font></div></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Period<br>
      End</b></font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Average<br>
      Rate </b>(1)</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>High</b></font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Low</b></font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td>
      <hr align="left" width="110" size="1" noshade></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1998</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.70</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.66</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.71</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.61</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.65</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.63</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.72</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.55</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.48</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.55</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.68</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.40</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.47</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.44</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.50</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.37</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.57</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.48</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.58</font></div></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><div align="right"><font face="serif" size="2">1.41</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><div align="left"></div>
      <hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The average of the Noon Buying Rate on the
      last day of each full month during the period.</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the Group&#146;s assets, liabilities and revenues are denominated in currencies other than pounds sterling, principally the US dollar and euro. For a discussion of the impact  of exchange rate movements, see &#147;Item&nbsp;5. Operating and Financial Review and Prospects &#151; Liquidity and Capital Resources&#148;.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p11a"></a>RISK FACTORS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This section describes some of the risks that could materially affect the Group&#146;s businesses. The factors below should be considered in connection with any forward-looking statements in this  Form 20-F and the cautionary statements contained on page 6.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The risks below are not the only ones that the Group faces. Some risks are not yet known to Six Continents and some that Six Continents does not currently believe to be material could later  turn out to be material. In particular, consideration should be given to the ongoing global political uncertainties and specifically the threat of conflict in the Middle East which could adversely effect  the financial condition of the Group&#146;s businesses. All of these risks could materially affect the Group&#146;s businesses, turnover, operating profit, earnings, net assets and liquidity and capital resources.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a consequence of the proposed Separation, additional risk factors have been identified to reflect the lower materiality threshold which would relate to Six Continents Hotels and Soft Drinks  and to Six Continents Retail as separate businesses after Separation.</font></p>
<p><font face="serif" size="2"><b>General Risks</b></font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to the risks of economic recession</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group is exposed to the risks of either a global recession or a recession in one or more of its key markets. The effect would be to lower revenues and reduce income. For SCH, a recession  would adversely affect</font></p>
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<p><font face="serif" size="2">room rates and/or occupancy levels and other income generating activities resulting in deterioration of results of operations and limiting its  ability to sell its properties in affected economies.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is exposed to the risks of a recession in the United Kingdom and to a lesser extent in Germany. A recession in either market could result in lower consumer expenditure and therefore  lower revenues and reduced net income, particularly in SCR&#146;s restaurant business. SCR&#146;s Alex sites in Germany have already experienced lower revenues as a result of the current economic climate  in Germany. SCR&#146;s sites in London have experienced lower revenues as a result of economic downturn from decreased activity in the financial markets and from reduced tourist visits as a result of  the terrorist attacks on September 11, 2001 and the possible threat of conflict in the Middle East.</font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to political and economic developments and currency exchange rate fluctuations</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Group has worldwide operations, global political and economic developments and currency exchange rate fluctuations may impact results of operations. In addition, other local  economic factors such as local interest rates, risks of hyper-inflation or deflation and political developments in some countries could adversely impact the Group&#146;s results of operations. Political or  economic factors could effectively prevent the Group from receiving profits from, or from selling its investments in, these countries. These factors could affect the operation or creditworthiness of  banks or other counterparties with which the Group has dealings. In addition, fluctuations in currency exchange rates between the UK pound sterling and the US dollar and the currencies in which the  Group&#146;s international operations or investments operate could adversely affect the Group&#146;s reported earnings and the value of its businesses.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Group operates in many countries, the functional currency of its operations is generally the currency of the local operating environment. As a result, foreign exchange rate fluctuations  between currencies could have a material adverse effect on the Group&#146;s reported operating results, which are stated in pounds sterling.</font></p>
<p><font face="serif" size="2"><b><i>The Group is dependent upon recruiting and retaining key personnel, and developing their skills</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to develop, support and market its products, the Group must hire and retain highly skilled employees with particular expertise. The implementation of the Group&#146;s strategic business  plans could be undermined by failure to recruit or retain key personnel, the unexpected loss of key senior employees, failures in the Group&#146;s succession planning, or a failure to invest in the  development of key skills. Additionally, unless skills are supported by a sufficient infrastructure to enable knowledge and skills to be passed on, the Group risks losing accumulated knowledge if key  employees leave the Group.</font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to certain risks in relation to technology</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A failure by the Group to take advantage of new technology and developments could put the Group at a competitive disadvantage in the field of e-commerce and business-to-business  hospitality or supplier procurement or any other aspect of the Group businesses dependent upon its technology infrastructure. The Group may have to make substantial additional investments in new  technologies to remain competitive. The technologies that the Group chooses may not prove to be commercially successful or the information technology strategy employed may not be sufficiently  aligned or responsive to changes in business strategy. As a result, the Group could lose customers, fail to attract new customers or incur substantial costs in order to maintain its customer base or face  other losses.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to develop an appropriate e-commerce strategy and select the right partners could allow the Group&#146;s market share to erode. Loss of key communications linkages or key parts of the IT  infrastructure for a prolonged period or permanently may result in significant business interruption and subsequent impact on reserves.</font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to regulatory action</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both in the United Kingdom and internationally, the Group&#146;s operations are subject to regulation, and further changes in regulation could adversely affect results of operations. Examples of  such regulatory changes could include:</font></p>
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    <td><font face="serif" size="2">Further employment legislation which could impact labor costs such as minimum wage and maximum working hours, overtime, working conditions, recruiting and terminating employees and work permits.</font></td>
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    <td><font face="serif" size="2">The Group&#146;s international hotel operations are exposed to governmental actions in almost 100 countries and territories. The hospitality industry is heavily regulated, including with respect to food and beverage sales, employee relations, diversity and access for the disabled, construction and environmental concerns. Compliance with these laws could reduce revenues and profits of properties owned or managed by the Group. The Group and its various properties are subject worldwide to numerous laws, including those relating to the preparation and sale of food and beverages, such as health and liquor license laws. Additionally, the success of the Group&#146;s strategy in relation to the expansion of its existing properties may be dependent upon obtaining necessary building permits or zoning variances from local authorities. The Group is also subject to foreign and US federal, state and local laws and regulations relating to the environment and the handling of hazardous sub
stances which may impose or create significant potential environmental liabilities, even in situations where the environmental problem or violation occurred on a property before the Group acquired it. Possible future legislation or regulation or different enforcement of current legislation or regulations, particularly in the areas of competition law, consumer protection, non-discrimination, franchise and environmental law could adversely affect the Group&#146;s operations.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse regulatory developments could limit or prevent the Group receiving profits from, or limit its ability to sell, the properties affected by the regulatory change.</font></p>
<p><font face="serif" size="2"><b><i>The Group may face difficulties insuring its businesses</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, Six Continents has maintained insurance at levels determined by it to be appropriate in light of the cost of cover and the risk profiles of the businesses in which it operates.  Following the effects of the September 11, 2001 terrorist attacks, companies in general are facing increased premiums for reduced cover as the insurance market has hardened. The Group will  continue to explore ways of sensibly insuring risk. Generally, the Group will have to pay higher premiums or in some cases take out less, or a lower quality of, cover. This could adversely affect the  Group by increasing costs or increasing the exposure of the Group to certain risks.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The M and B Group intends to be covered by Six Continents&#146; existing policies until September 30, 2003. From October 2003, the M and B Group and the InterContinental Group will be  required to establish new insurance arrangements. This could adversely affect the M and B Group and the InterContinental Group by increasing costs or increasing their exposure to certain risks.</font></p>
<p><font face="serif" size="2"><b><i>The Group is reliant on the reputation of its brands and the protection of its intellectual property rights</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An event that materially damaged the reputation of one or more of the Group&#146;s brands and/or failure to sustain the appeal of the Group&#146;s brands to its customers could have an adverse impact  on the value of that brand and subsequent revenues from that brand or business. Given the importance of brand recognition to the Group&#146;s businesses, the Group has invested considerable effort in  protecting its intellectual property, including by registration of trademarks and domain names. If the Group is unable to protect its intellectual property, any infringement or misappropriation could  materially harm its future financial results and ability to develop its businesses.</font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to changes in consumer perception and preference adversely affecting its brands</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group&#146;s range of brands and relevance to the sectors of the markets in which it operates may be adversely affected by changes in taste, commoditization, loss of distribution or other  factors affecting consumers&#146; willingness to purchase goods or services, including any factor which adversely affects the reputation of those brands.</font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to changes in tax legislation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in tax legislation and practice may adversely affect the financial performance of the Group.</font></p>
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<p><font face="serif" size="2"><b>Funding Risks</b></font></p>
<p><font face="serif" size="2"><b><i>The Group&#146;s indebtedness could adversely affect its financial health</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group has put in place borrowing facilities to meet its expected capital resource requirements. The Group&#146;s ability to borrow under these and any other additional facilities which it might  seek to establish will be determined by the Group being able to comply with certain financial and other covenants contained in the relevant facility documentation. If the Group&#146;s revenues, cash flow  or credit ratings do not meet expectations, the Group may lose its ability to borrow money or to do so on terms it considers to be favorable. Conditions in the capital markets will also affect the  Group&#146;s ability to borrow funds or to raise equity financing, as well as the terms it may obtain. All of these factors could also make it difficult or impossible for the Group otherwise to raise capital  needed to pursue its strategy.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company cannot assure investors that the Group will be able to arrange any additional financing or refinancing needed to fund its capital resource requirements on acceptable terms, or at  all. As the Group&#146;s levels of debt increase, its business may not be able to generate sufficient cash flow to service its debt and/or continue its investment program.</font></p>
<p><font face="serif" size="2"><b>Pensions risks</b></font></p>
<p><font face="serif" size="2"><b><i>The Group is exposed to funding risks in relation to the defined benefits under its pension schemes</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group is obliged by law to maintain a minimum funding level in relation to its ongoing obligation to provide current and future pensions for the members of its schemes who are entitled  to defined benefits. In addition to this, if any scheme of the Group is wound up, the Group could become statutorily liable to make an immediate payment to the trustees to bring the funding of these  defined benefits to a level which is higher than this minimum. Also, the trustees of the Group&#146;s schemes have a wide discretion under the scheme rules to decide the contributions payable by the  Group, and these must be set with a view to making prudent provision for the benefits accruing under the schemes of the Group.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the issues which could adversely affect the funding of these defined benefits (and materially affect the Group&#146;s funding obligations) are: (i) poor investment performance of pension  fund investments; (ii) long life expectancy (which will make pensions payable for longer and therefore more expensive to provide, whether paid directly from the schemes or secured by the purchase  of annuities); (iii) adverse annuity rates (which tend in particular to depend on prevailing interest rates and life expectancy) as these will make it more expensive to secure pensions with an insurance  company; (iv) clarification of the law that might require guaranteed minimum pensions relating to service prior to April 6, 1997 to be equalized as between men and women; and (v) other events  occurring which make past service benefits more expensive than predicted in the actuarial assumptions by reference to which the Group&#146;s past contributions were assesse
d.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An additional uncertainty is that changes to the statutory requirement regarding funding are expected, and these could in some cases prove to be more onerous for employers than those  described above. It should be noted (particularly in view of a disappointing stock market performance in January 2003) that the schemes&#146; funding positions may well prove to be weaker now than at  December 31, 2003, and further adverse changes are possible in the future.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As with many other schemes throughout the United Kingdom, there is the possibility of future claims being brought against the Group alleging unlawful indirect sex discrimination contrary to  Article 141 of the European Treaty on the grounds of the scheme&#146;s former exclusion of part-time employees. The chances of success for such claims are uncertain owing to issues of law that are  presently unresolved.</font></p>
<p><font face="serif" size="2"><b>Additional Risks Relating to Six Continents Hotels</b></font></p>
<p><font face="serif" size="2"><b><i>SCH is exposed to the risk of events that adversely impact domestic or international travel</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s room rates and occupancy levels could be adversely impacted by events such as acts of terrorism, war, the threat of war, travel-related accidents, travel-related industrial action,  increased transportation and fuel costs and natural disasters resulting in reduced worldwide travel or other local factors impacting individual hotels.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terrorist attacks of September 11, 2001, their immediate aftermath and other subsequent national and world events, including the bombings in Bali on October 12, 2002 and in Mombasa  on November 28, 2002, have created a significant amount of uncertainty about future prospects and national and world economies. The overall long-term effect on the Group and the hotel industry is  also uncertain. Domestic and international business and leisure travel, which were already adversely affected by the recent economic downturn, have been further affected and are likely to remain  depressed over the near-term as potential travelers reduce or avoid discretionary air and other travel in light of increased safety concerns and anticipated travel delays. The attacks have also decreased  consumer confidence, and a resulting further decline in the United States and global economies could further reduce travel. At the present time, however, it is not possible to pr
edict either the severity  or duration of such declines, but weaker hotel performance will, in turn, have an adverse impact on SCH&#146;s business, financial condition and results of operations.</font></p>
<p><font face="serif" size="2"><b><i>SCH is exposed to the risks of the hotel industry supply and demand cycle</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s future operating results could be adversely affected by industry over-capacity (by number of rooms) and weak demand. Reductions in room rates and occupancy levels would adversely  impact SCH&#146;s results of operations.</font></p>
<p><font face="serif" size="2"><b><i>SCH may not be able to increase or maintain the number of its properties operated by its franchisees or pursuant to its management contracts</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition may generally reduce the number of suitable management, franchise and investment opportunities offered to SCH, and increase the bargaining power of property owners seeking  to engage a manager, become a franchisee or sell a hotel property. There can be no assurance that SCH will be able to identify, retain or add franchisees to the SCH system or to secure management  contracts. There are also risks that significant franchisees or groups of franchisees may have interests that conflict, or are not aligned, with those of SCH. Changes in legislation or regulatory changes  may be implemented that have the effect of favoring franchisees relative to brand owners.</font></p>
<p><font face="serif" size="2"><b><i>SCH is exposed to risks of failures within its HolidexPlus and other centralized systems</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH is heavily reliant on (i) its HolidexPlus and other reservation systems, which receive reservation requests entered on terminals located at the vast proportion of the Group&#146;s hotels and  reservation centers as well as from a number of major corporations, travel agents and US domestic airlines; (ii) other centralized systems (for example, its IT networks); and (iii) bookings received  via its website. If HolidexPlus or any other critical system were to fail, SCH&#146;s occupancy levels and results of operations could be adversely affected.</font></p>
<p><font face="serif" size="2"><b><i>SCH is exposed to the risk of increased use of intermediaries&#146; internet reservation channels</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of SCH&#146;s brands is partly derived from the ability to drive reservations through its proprietary HolidexPlus reservation system. In recent years there have been very rapid changes in  the ability to choose and book hotel rooms, driven by the internet, with the emergence of intermediaries which market hotel rooms in such a way that there is the risk of commoditization of hotel  rooms. Some of the emerging business models and intermediaries could have a significant impact on the ability of SCH to continue to drive reservations, and hence have an impact on the value of  SCH&#146;s brands. Additionally, these channels are becoming more consolidated which may lead to higher costs of distribution for SCH, for example by intermediaries being able to demand higher  commissions. Although SCH is actively taking steps to adapt to the changing environment (by developing competitive internet reservation systems for its own benefit), because of th
e very high pace  of change in this area there is a risk that SCH will not adapt quickly enough.</font></p>
<p><font face="serif" size="2"><b><i>SCH may experience a lack of acquisition opportunities</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the availability of suitable sites becomes limited, SCH may be unable to pursue its strategy of acquiring new land or locations for the potential development of new hotels,  particularly in Europe, Middle East and Africa (&#147;EMEA&#148;) and within major gateway cities globally, which could inhibit and adversely affect its results of operations.</font></p>
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<p align=center><font face="serif" size="2">15</font></p>
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<p><font face="serif" size="2"><b><i>SCH is exposed to the risk of litigation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH could be at risk of litigation from its guests, customers, joint venture partners, suppliers, franchisees and/or the owners of hotels managed by it for breach of its contractual or other duties.  Claims filed in the United States may include requests for punitive damages as well as compensatory damages.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exposure to litigation may affect the Group&#146;s reputation even though the monetary consequences are not significant.</font></p>
<p><font face="serif" size="2"><b>Additional Risks relating to the Soft Drinks business</b></font></p>
<p><font face="serif" size="2"><b><i>The Soft Drinks business is exposed to risks related to possible product contamination</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Soft Drinks business, like all beverage producers, has been and will continue to be vulnerable to accidental or malicious contamination of its products or base raw materials. Any such  contamination could result in recall of the Soft Drinks business&#146; products, the Soft Drinks business being unable to sell its products, damage to brand image and/or civil or criminal liability, which  could have a material adverse effect on the Soft Drinks business&#146;s operations and financial performance.</font></p>
<p><font face="serif" size="2"><b><i>The Soft Drinks business is reliant upon certain suppliers</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Soft Drinks business is reliant upon fruit juice concentrates, sugar and other fruit juice raw materials as necessary ingredients for many of its products. In the event the Soft Drinks  business is unable to obtain an adequate supply of these raw materials or fails to negotiate the purchase of these materials on a reasonable commercial basis, this could have a significant adverse  impact on the Soft Drinks business&#146; financial operations.</font></p>
<p><font face="serif" size="2"><b><i>The Soft Drinks business is exposed to significant competition</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Soft Drinks business operates in a highly competitive market sector in which large competitors such as Coca-Cola Enterprises are active.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A change in the level of marketing undertaken by competitors or in their pricing policies, the growth or strengthening of existing retailers of beverage products, the introduction of new  competing brands or products or increased purchasing power pressure from customers could have a material adverse effect on the Soft Drinks business&#146; operations and financial performance.  Conversely, competition law may regulate the Company&#146;s ability to participate in industry consolidation at a strategic level.</font></p>
<p><font face="serif" size="2"><b><i>Adverse weather conditions could reduce demand for the Soft Drinks business&#146; products</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand for the Soft Drinks business&#146; products may be affected by weather conditions, especially in the summer months, when unseasonably cool or wet weather can affect sales volumes and  therefore the results of the Soft Drinks business&#146; operations for the year.</font></p>
<p><font face="serif" size="2"><b>Additional Risks relating to Six Continents Retail</b></font></p>
<p><font face="serif" size="2"><b><i>Certain changes to regulation may affect the cost base of the SCR business</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both in the United Kingdom and in Germany, SCR&#146;s operations are subject to regulation and further changes in regulation could adversely affect results of operation, including through higher  costs. More restrictive regulations could lead to increasing prices to consumers which in turn may adversely affect demand and therefore revenues and profitability. In particular, additional EU or UK  employment legislation (in particular, the level of the national minimum wage, which is under annual review by the UK Low Pay Commission and which the Trades Union Congress in the United  Kingdom is seeking to raise to between &pound;5.00 and &pound;5.30 in 2004, and the maximum number of hours an employee may be permitted to work and the extent to which they may voluntarily opt-out)  could further increase labor costs.</font></p>
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<p><font face="serif" size="2"><b><i>SCR&#146;s sites must compete with other pubs and restaurants and consumption at home</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s pubs and restaurants compete for consumers with a wide variety of other branded and non-branded pubs and restaurants as well as off-licenses, supermarkets and takeaways, some of  which may offer higher amenity levels or lower prices and be backed by greater financial and operational resources. SCR&#146;s pubs and restaurants may not be successful in competing against any or all  of these alternatives and a sustained loss of customers and/or skilled employees to other pubs or leisure activities or increased consumption at home could have a material adverse affect on SCR&#146;s  business operations and prospects.</font></p>
<p><font face="serif" size="2"><b><i>SCR&#146;s activities are affected by a number of fiscal-related matters</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s activities are affected by a number of fiscal-related matters. These matters include duty on alcoholic beverages, value added tax, other business taxes and the availability of duty  harmonization to travelers between EU countries. Changes in legislation which affect all or any of these matters may adversely affect the financial performance of SCR.</font></p>
<p><font face="serif" size="2"><b><i>Certain changes in regulation may affect SCR&#146;s revenue</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some examples of
  regulatory changes which could affect SCR&#146;s revenue base could include:</font></p>
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    <td><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">Licensing reform</font></td>
  </tr>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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    <td><font face="serif" size="2">Licensing reform which would result in additional
      expense and process delays, or require re-licensing of existing license
      holders or permit objections to a new site after planning consent and a
      provisional license has been granted, and any delays and failures to obtain
      required licenses or permits could negatively affect SCR&#146;s operations
      and in particular its ability to obtain licenses for new sites in residential
      areas.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">Changes to drink-driving and smoking laws</font></td>
  </tr>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">The UK Government has carried out consultation
      exercises concerning the legal blood alcohol limit for drivers and smoking
      in public places, to decide whether to introduce regulations controlling
      smoking in public, including in pubs and restaurants. If the UK Government
      introduces regulations which further discourage customers from driving to
      pubs or discourage smokers from frequenting pubs and restaurants, pubs and
      restaurants could suffer a reduction in turnover which could have a negative
      effect on SCR&#146;s business.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">Changes to the gaming legislation</font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Changes to the gaming legislation are under
      consideration by the UK Government, including the operation of amusement
      machines with prizes (or fruit machines) (&#147;AWPs&#148;) in pubs. The
      main areas of the current legislation that would change are that play by
      those under 18 years old would be illegal (although SCR already complies
      with a voluntary code to this effect) and the control of numbers of AWPs
      would pass from licensing magistrates to local authorities. The other areas
      of change relate to categories of machines permitted in casinos, licensed
      betting offices, bingo amusement arcades, family entertainment centers and
      motorway service stations which may increase the competitive threat to SCR
      in respect of gaming. These new gaming laws could impede SCR&#146;s ability
      to increase income from AWPs.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>SCR may be adversely affected by changes in supplier dynamics and interruptions in supply or by circumstances adversely affecting business continuity</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recent years, there has been a consolidation in the brewing and distribution industry in the United Kingdom. This consolidation could have the effect of exposing SCR to reliance on a  limited number of suppliers, and those suppliers may be able to exert pressures on SCR that could have the effect of raising the prices paid by SCR for goods bought or delivered, reducing SCR&#146;s  margins and adversely affecting results of operations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR has entered into agreements with all of its key suppliers. Termination of these agreements, variation of their terms or the failure of a party to comply with its obligations under these  agreements could have a material adverse effect on the operations and financial performance of SCR.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">17</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The interruption or contamination of the supply of food and drink to SCR&#146;s sites or loss of a key office or part of SCR&#146;s IT infrastructure may affect SCR&#146;s ability to trade.</font></p>
<p><font face="serif" size="2"><b><i>Weather may adversely affect SCR&#146;s business</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attendance levels at SCR&#146;s pubs and restaurants may also be adversely affected by persistent rain or other inclement weather, especially during the summer months or over the Christmas  period. This could have a negative effect on turnover generated by SCR&#146;s pubs and restaurants and, in turn, could have a negative effect on the results of SCR&#146;s operations.</font></p>
<p><font face="serif" size="2"><b><i>The pub industry is subject to varying consumer perceptions and public attitudes</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the United Kingdom, consumption of alcoholic beverages has become the subject of considerable social and political attention in recent years due to increasing public concern over alcohol-  related social problems including drink driving, underage drinking and adverse health consequences associated with the misuse of alcohol, including alcoholism. For example, from 1995 to 2000,  sales of all beer (by volume) in the United Kingdom decreased by 3.6%. Changes in consumer tastes in both food and drink and demographic trends over time may affect the appeal of SCR&#146;s pubs  and restaurants to consumers. SCR&#146;s success will depend in part on its ability to anticipate, identify and respond to these changing conditions in the context of the life-cycle economics of the leisure  industry.</font></p>
<p><font face="serif" size="2"><b><i>Complaints or litigation from pub customers, employees and third parties may adversely affect SCR</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR or the licensed retailing industry could be the subject of complaints or litigation from individual or groups of pub customers and/or employees and/or class actions alleging illness or  injury (e.g. passive smoking or alcohol abuse) or raising other food quality, health or operational concerns, and from other third parties in nuisance and negligence. It may also incur additional  liabilities as a freehold property owner (including environmental liability). These claims may also divert SCR&#146;s financial and management resources from more beneficial uses. If SCR were to be  found liable in respect of any complaint or litigation, this could adversely affect SCR&#146;s results of operations, and also adversely affect the reputation of SCR or its brands.</font></p>
<p><font face="serif" size="2"><b><i>SCR is exposed to fluctuations in the property market</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Around 16% of SCR&#146;s property is short leasehold which is subject to periodic rent reviews and renegotiation of rents when leases are renewed. The property market may develop so that rents  may increase such that they affect the economic viability of one or more of such properties. Equally, a downturn in the UK property market may lead to a reduction in SCR&#146;s freehold property values  over time.</font></p>
<p><font face="serif" size="2"><b><i>Lack of acquisition opportunities for SCR</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As there is a finite number of existing or potential sites in good locations, SCR&#146;s strategy of acquiring suitable sites for development of new pubs and restaurants, particularly in residential  areas, may be negatively impacted.</font></p>
<p><font face="serif" size="2"><b><i>SCR has a high proportion of fixed overheads and variable revenues</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A high proportion of SCR&#146;s operating overheads and certain other costs remain constant even if its revenues drop. The expenses of owning and operating a managed pub or pub-restaurant are  not significantly reduced when circumstances such as market and economic factors and competition cause a reduction in revenues. Owners of leased and tenanted estates generally have a lower risk  to revenue exposure compared with SCR because the tenant is obliged to pay the negotiated rent. In addition, owners of leased and tenanted estates typically have lower fixed costs at both operating  and head office levels than SCR.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, a significant decline in SCR&#146;s revenues would have a disproportionately adverse effect on its cash flow and ability to make interest and principal payments on its debt.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">18</font></p>
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<p><font face="serif" size="2"><b>Separation risks</b></font></p>
<p><font face="serif" size="2"><b><i>Sales of a substantial number of InterContinental PLC&#146;s or M</i></b>&nbsp;<b><i>and</i></b>&nbsp;<b><i>B&#146;s ordinary shares or InterContinental PLC&#146;s or M</i></b>&nbsp;<b><i>and</i></b>&nbsp;<b><i>B&#146;s ADSs after the Separation, or the prospect of such sales,  could have an adverse effect on the market price of InterContinental PLC&#146;s or M</i></b>&nbsp;<b><i>and</i></b>&nbsp;<b><i>B&#146;s securities</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the Separation,
  there may be substantial trading activity in InterContinental PLC&#146;s ordinary
  shares or ADSs and/or M&nbsp;and&nbsp;B&#146;s ordinary shares or ADSs in the
  public markets. This may occur because, for example, shareholders who receive
  those securities in the Separation do not wish to hold securities in InterContinental
  PLC and M&nbsp;and&nbsp;B or may not be able to hold the securities as a result
  of their own portfolio requirements and preferences such as those relating to
  indexed membership or geographic exposures. A high level of trading activity
  may lead to volatility in the price of InterContinental PLC and M&nbsp;and&nbsp;B
  securities, and significant selling pressure may adversely affect the price
  of their securities. Declines in the market price of ordinary shares or ADSs
  may impair the ability of InterContinental PLC and M and B to raise capital
  through an offering of securities in the future.</font></p>
<p><font face="serif" size="2"><b><i>The price of InterContinental PLC and M and B ADSs and the US dollar value of any dividends will be affected by fluctuations in the US dollar/UK pound sterling exchange rate</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fluctuations in the exchange rates between the US dollar and the UK pound sterling will affect the US dollar conversion by the Depositary of any cash dividends paid in pounds sterling on the  ordinary shares represented by the InterContinental PLC and M and B ADSs, and the US dollar equivalent of the pound sterling price of the ordinary shares on the London Stock Exchange, which  may consequently affect the market price of InterContinental PLC and M and B ADSs. These fluctuations would also affect the US dollar value of the proceeds a holder of an InterContinental PLC  and M and B ADR would receive upon the sale in the United Kingdom of any of their respective equity shares withdrawn from the Depositary.</font></p>
<p><font face="serif" size="2"><b><a name="p19a"></a>ITEM 4.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INFORMATION
  ON THE COMPANY</b></font></p>
<p align=center><font face="serif" size="2"><b><a name="p19b"></a>SUMMARY</b></font></p>
<p><font face="serif" size="2"><b>Group Overview</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group&#146;s business comprises hotels, branded drinks and retail; hotels through the ownership, management, leasing and franchising of hotels and resorts; branded drinks through the  production and distribution of soft drinks; and retail through the ownership and management of public houses (&#147;pubs&#148;), restaurants, bowling centers and leisure venues.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 10, 2003, Six Continents PLC had a market capitalization of &pound;4.5&nbsp;billion, and was included in the list of FTSE&nbsp;100 companies. The Company was formed in 1967, but the  constituent parts are the result of the amalgamation of more than 80 companies and a number of disposals over more than 200 years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Companies operate in three core business areas: hotels; branded drinks; and retail. The corporate headquarters are in the United Kingdom, and the registered address is:</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents PLC<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20 North Audley Street<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;London<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W1K 6WN<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tel: +44 (0) 20 7409 1919<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet address: www.sixcontinents.com</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents PLC is incorporated in Great Britain and registered in, and operates under, the laws of England and Wales. Operations undertaken in countries other than England and Wales  are under the laws of those countries in which they reside.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">19</font></p>
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<p><font face="serif" size="2"><b>Group Strategy</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale of Bass Brewers in August 2000 marked a decisive step in the transformation of Six Continents from a vertically integrated domestic UK brewer to a leading international business  focusing on global hotels and restaurants and bars in the United Kingdom and Germany.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;1, 2002, the Company announced the proposed separation of Six Continents Hotels and Soft Drinks from Six Continents Retail and the Return of Capital. The Company expects  this will result in separately listed hotel and retail companies, each better placed to pursue their individual strategies and drive their operational development. In the Company&#146;s view this will enhance  their ability to generate value for shareholders.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposal is still subject to regulatory and shareholder approval and is not expected to become effective before April 2003.</font></p>
<p><font face="serif" size="2"><b>Group Development</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In pursuing its strategy, Six Continents intends to run its businesses to maximize shareholder value; this will mean making acquisitions and disposals from time to time, with particular  emphasis on acquisitions in the hotels segment which could be of significant size and scale. During the past three fiscal years, Six Continents made the following significant acquisitions and  disposals:</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;3, 1999 Six Continents completed the acquisition of a leisure retail business comprising 550 former Allied Domecq Retailing Limited (&#147;Allied Domecq&#148;) managed pubs for a  consideration of &pound;179&nbsp;million and the issue of 79&nbsp;million Six Continents ordinary shares. See &#147;Retail &#151; Six Continents Retail&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;17, 2000 Six Continents announced that it had purchased the business of Southern Pacific Hotels Corporation (&#147;SPHC&#148;), which operated 59 hotels in the Asia Pacific region for  Australian $313&nbsp;million. See &#147;Hotels &#151; Six Continents Hotels&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2000, Six Continents completed the acquisition of the outstanding 90.1% of the issued share capital of Bristol Hotels &amp; Resorts Inc. (&#147;Bristol&#148;) which it did not already own, for a  total consideration of $157&nbsp;million. See &#147;Hotels &#151; Six Continents Hotels&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;22, 2000 Six Continents completed the sale of its brewing business to Interbrew S.A. (&#147;Interbrew&#148;) of Belgium for &pound;2.3&nbsp;billion.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2001, Six Continents Retail sold an estate of 988 smaller unbranded sites with limited growth potential to Nomura International PLC (&#147;Nomura&#148;) for &pound;625 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;4, 2001 Six Continents completed the acquisition of Posthouse for &pound;810&nbsp;million, comprising 79 midscale hotels, of which 77 hotels were owned or held under long lease. See  &#147;Hotels &#151; Six Continents Hotels&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2001, Six Continents completed the acquisition of the Regent Hotel in Hong Kong for a total consideration of &pound;241&nbsp;million.</font></p>
<p><font face="serif" size="2"><b>SCH</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH owns, manages, leases or franchises a number of hotel brands including InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites and Holiday Inn Express (or Express by Holiday  Inn outside of the Americas) (&#147;Express&#148;), which at September 30, 2002 comprised 3,325 hotels with approximately 515,525 guest rooms in nearly 100 countries and territories. These include owned,  leased, managed and franchised hotels.</font></p>
<p><font face="serif" size="2"><b>Soft Drinks</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents has a controlling interest in and manages Britvic, the second largest soft drinks manufacturer in the United Kingdom. Britvic includes Tango and Robinsons among its brands. It  also produces Pepsi Beverages International (&#147;PBI&#148;) products under license.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">20</font></p>
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<p><font face="serif" size="2"><b>SCR</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is responsible for over 2,100 pubs, bars, restaurants and ten-pin bowling centers owned by Group companies in the United Kingdom and Germany. Its brands include Vintage Inns,  Harvester, All Bar One, Toby Carvery, Browns, Scream, O&#146;Neill&#146;s, Ember Inns, Edward&#146;s, Arena, Flares, Sizzling Pub Company, Goose and Hollywood Bowl.</font></p>
<p><font face="serif" size="2"><b>Other activities</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Group activities principally comprise property development. The property development activities will be transferred with SCR in the Separation.</font></p>
<p></p>
<p align=center><font face="serif" size="2">21</font></p>
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<p align=center><font face="serif" size="2"><b>SEGMENTAL INFORMATION</b></font></p>
<p><font face="serif" size="2"><b>Geographic Segmentation</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows turnover and operating profit by geographical area, and the percentage of each geographical area, for each of the three fiscal years ended September&nbsp;30, 2002, 2001  and 2000.</font></p>
<p><font face="serif" size="2"><b>Amounts in accordance with UK GAAP</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>%</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Turnover by Geographical
      Area </b>(1)(3)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">68.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">71.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">United Kingdom</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,491</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,446</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,686</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Rest of Europe, the Middle East
      and Africa</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">411</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">441</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">497</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">United States</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">476</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">908</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">779</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Rest of Americas</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Operating Profit before Exceptional
      Items by Geographical Area (1)(2)</b></font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">United Kingdom</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">397</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">431</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Rest of Europe, the Middle East
      and Africa</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">United States</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">180</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Rest of Americas</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The results of overseas operations have been
      translated into sterling at weighted average rates of exchange for the year.
      In the case of the US dollar, the translation rates are 2002: &pound;1=$1.48;
      (2001: &pound;1=$1.44 and 2000: &pound;1=&pound;1.55).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Operating profit does not include major operating exceptional items for fiscal 2002 and fiscal 2001, nor does it include profits/(losses) on sale of fixed assets and operations and other exceptional items. Major operating exceptional items by region are United Kingdom (2002: &pound;24 million; 2001: &pound;19 million), the United States (2002: &pound;39&nbsp;million; 2001: &pound;24 million), and Asia Pacific (2002: &pound;14 million; 2001: nil).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(3)</font></td>
    <td><font face="serif" size="2">Amounts are reported by origin. See Note 2 of Notes to the Financial Statements for details by destination, for which the amounts are not significantly different.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">22</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p23"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>Activity Segmentation</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows turnover and operating profit by activity and the percentage contribution of each activity for each of the three fiscal years ended September 30, 2002, 2001 and  2000.</font></p>
<p><font face="serif" size="2"><b>Amounts in accordance with UK GAAP</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>%</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2"><b>Turnover
      by Activity </b>(1)</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">42.4</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">46.9</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">41.4</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Hotels</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,532</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,896</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,581</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">16.6</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">14.1</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">14.1</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">Soft Drinks</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">602</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">571</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">539</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">40.8</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">38.5</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">43.8</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Retail (2)</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,475</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,557</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,674</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">0.2</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">0.5</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">0.7</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">Other activities</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">8</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">16</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#FFFFFF"><font face="serif" size="2">24</font></td>
    <td bgcolor="#FFFFFF"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Continuing
      operations</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,617</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">4,040</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,818</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Less: Inter-divisional
      sales</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">2</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">7</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">43</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,615</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">4,033</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,775</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#ffffff"><font face="serif" size="2">Discontinued
      operations (2)</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">1,383</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,615</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">4,033</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">5,158</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Operating Profit before Exceptional
      Items by</b>&nbsp;<b> Activity </b>(1)(3)&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Hotels</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">427</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">376</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Soft Drinks</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Retail (2)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">288</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">305</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Other activities</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">100.0</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Continuing
      operations</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">618</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">792</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">776</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">Discontinued
      operations (2)</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">129</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">618</font></td>
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    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">792</font></td>
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    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">905</font></td>
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    <td><font face="serif" size="2">The results of overseas operations have been translated into sterling at weighted average rates of exchange for the year. In the case of the US dollar, the translation rates are 2002: &pound;1=$1.48 (2001: &pound;1=$1.44; 2000: &pound;1=$1.55).</font></td>
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    <td><font face="serif" size="2">Bass Brewers&#146; sales derived from inter-divisional sales, principally to Six Continents Retail were &pound;237&nbsp;million in fiscal 2000. Inter-divisional prices reflect only in part market conditions. The discontinued revenues figures shown relate to external sales only.</font></td>
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    <td><font face="serif" size="2">Operating profit does not include major operating exceptional items for fiscal 2002 and fiscal 2001, nor does it include profits/(losses) on sale of fixed assets and operations and other exceptional items. Major operating exceptional items were all in the Six Continents Hotels division (2002: &pound;77 million; 2001: &pound;43 million).</font></td>
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<p align=center><font face="serif" size="2">23</font></p>
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<p align=center><font face="serif" size="2"><b>HOTELS &#150; SIX CONTINENTS HOTELS</b></font></p>
<p><font face="serif" size="2"><b>Overview</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents Hotels owns a portfolio of well-recognized and respected brands, including InterContinental, Crowne Plaza, Staybridge Suites, Holiday Inn and Express. With more than 3,300  owned, leased, managed and franchised hotels and approximately 515,000 guest rooms across nearly 100 countries and territories as at the end of fiscal 2002, SCH is the most global hotel business  and the second largest in the world by number of rooms.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s strong hotel brands, international scope and portfolio of high quality assets, built through organic growth and acquisition, place it in a strong competitive position.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH generated operating profits before exceptional items of &pound;427 million on revenues of &pound;1,896 million in fiscal 2001, and in fiscal 2002, SCH generated operating profits before exceptional  items of &pound;262 million on revenues of &pound;1,532 million. The financial performance in 2002 declined in comparison to previous years, predominantly as a result of the events of September 11, 2001 and  the concurrent downturn in the global economy which adversely affected the worldwide hotel market.</font></p>
<p><font face="serif" size="2"><i>History</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents made its first significant international move into the hotel industry when it acquired Holiday&nbsp;Inn International in 1988 and the remaining North American business of Holiday  Inn in 1990. This gave Six Continents the Holiday Inn and the Crowne Plaza by Holiday Inn brands, and what is now an industry leading position by room numbers in the midscale segment in the  US. Subsequently, in 1990 it launched the limited service brand, Express.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In line with its strategy to optimize capital deployment, Six Continents disposed of its owned US midscale hotel property assets in 1997, but retained branding distribution on the majority of  these properties through franchise agreements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 1997, Six Continents entered the profitable US upscale extended stay segment with the introduction and development of Staybridge Suites by Holiday Inn. This has been the fastest  brand to reach 50 units in the Americas in its segment and demonstrates Six Continent&#146;s ability to create and launch brands in the hotel market.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To expand further its international reach and add to its strong brand portfolio, Six Continents acquired the InterContinental hotels business in March 1998, owner of the most global upper  upscale hotel brand. This acquisition added 117 InterContinental and 20 Forum hotels to the portfolio. Following this acquisition, Six&nbsp;Continents had a portfolio of brands spanning the industry from  upper upscale to midscale limited service across all regions.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2000, Six Continents acquired the Australia-based hotel company, Southern Pacific Hotels Corporation, which operated 59 hotels under the &#147;Parkroyal&#148; and &#147;Centra&#148; brands  across Australia, New Zealand and the South Pacific as well as hotels in select South East Asian countries. These hotels strengthened considerably Six Continents&#146; existing organically-built presence  in the Asia Pacific region. A large proportion of these hotels were subsequently converted to the InterContinental, Crowne Plaza and Holiday Inn brands. Shortly afterward, Six Continents acquired  Bristol Hotels &amp; Resorts Inc., a US based hotel management company comprising 112 hotels operating mainly under leases. These leases were then sold or converted to management contracts by  July 2001, thereby reducing the volatility of Six Continents Group&#146;s earnings from those hotels.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2001, Six Continents completed the acquisition of the Posthouse business, which comprised 79 midscale hotels located in the United Kingdom and Republic of Ireland. Six Continents  then converted the majority of these hotels to the Holiday Inn brand, thereby enhancing the position of Holiday Inn in the UK, making it the number one midscale brand by number of rooms. This  acquisition, combined with strong midscale segment positions in Germany and Italy, gave Six Continents a strong European base of operations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2001, Six Continents completed its acquisition of the prestigious Regent Hotel in Hong Kong, which it subsequently rebranded &#147;InterContinental Hong Kong&#148;, strengthening its  upper upscale market position in the Asia Pacific region and adding a key location for its international guests.</font></p>
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<p align=center><font face="serif" size="2">24</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through these significant acquisitions and organic growth, Six Continents has built a strong, branded, international hotel group.</font></p>
<p><font face="serif" size="2"><b>Strategy</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s strategy is to use the strength of its brand portfolio, the breadth of its distribution, the diversity of its business models and the benefits of its scale in order to drive growth and returns for  the Company&#146;s shareholders. SCH intends to continue to implement this strategy by seeking to:</font></p>
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    <td><font face="serif" size="2">develop high quality, strongly differentiated
      brands;</font></td>
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    <td>&#149;</td>
    <td><font face="serif" size="2">extend SCH&#146;s network of hotels;</font></td>
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    <td><font face="serif" size="2">leverage global system scale economies to
      drive superior revenue per available room (&#147;RevPAR&#148;) and gross
      operating profit (&#147;GOP&#148;) premiums;</font></td>
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    <td><font face="serif" size="2">optimize capital deployment; and</font></td>
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    <td>&nbsp;</td>
    <td><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">continue to develop SCH&#146;s people.</font></td>
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<p><font face="serif" size="2"><i>Develop high quality, strongly differentiated brands</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strong brands are seen as a key to success in the hotel industry and, therefore, SCH intends to continue to pursue its strategic goal of further developing strongly differentiated consumer  brands and service standards. SCH&#146;s hotel brands are defined as a &#147;promise&#148; to the customer made up of three principal differentiating factors:</font></p>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">underlying quality: an established standard of product quality and, where applicable, guaranteed facilities, for example, physical brand standards for hotels such as quality of mattresses or provision of a swimming pool;</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">service standards: an established level of guaranteed service, such as a 24 hour reception or room service; and</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">&#147;brand personality&#148;: the essence of the brand and the positioning with the target market, for example InterContinental&#146;s &#147;<i>we know what it takes&#148; </i>positioning.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Progress in implementing this strategy is demonstrated by recent investment in refurbishment of major InterContinental hotels worldwide and Holiday Inn hotels in the United Kingdom.  Additionally, there is the development in the United States of a new design of Holiday Inn hotel, which aims to provide better returns to owners and enhanced quality and service standards for guests.  SCH has also launched improved training programs and service standards for the brands, such as the InterContinental ICONS program (the marketing program of key product standards to  differentiate the brand developed by Six Continents in relation to InterContinental) and the Holiday Inn Hallmarks program.</font></p>
<p><font face="serif" size="2"><i>Extend the Group&#146;s network of hotels</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH aims to extend its upper upscale and upscale brand network of locations that are attractive to international guests and strengthen its midscale brands in key domestic markets, (for  example, Express in Germany). The acquisition of the Regent Hotel in Hong Kong and the Posthouse hotels in the United Kingdom, the subsequent rebranding of these hotels to the Group&#146;s hotel  brands, and the building of new InterContinental hotels in Atlanta and Boston, are representative of its drive to implement this strategy. In addition, SCH also intends to acquire freehold or leasehold  properties in targeted key strategic locations, to acquire management contracts to manage hotels on behalf of others and to issue franchises.</font></p>
<p><font face="serif" size="2"><i>Leverage global system scale economies to drive superior RevPAR and GOP premiums</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH aims to operate a highly efficient support infrastructure for the Group&#146;s hotels which will help drive revenues and operating margins. SCH also intends to continue to exploit its global  scale and further strengthen its ability to drive revenues through its branded hotels by utilising a common IT platform, sales and marketing initiatives, reservation infrastructure and a strong loyalty  scheme (Priority Club Rewards). The number of Priority</font></p>
<p></p>
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<p><font face="serif" size="2">Club Rewards members, approximately 15 million members as at the end of fiscal 2002, and the proportion of room nights booked through  SCH&#146;s reservation systems, nearly 26% for fiscal 2002, demonstrate that SCH has a strong base from which to achieve this strategic aim.  SCH also intends to continually explore areas for cost savings across the organization.</font></p>
<p><font face="serif" size="2"><i>Optimize capital deployment</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH aims to drive enhanced returns from the asset base by redeploying capital over time. Ownership of assets will only be retained if those assets have strategic value or generate superior  returns. Any capital released will be primarily reinvested in alternative assets, used to repay debt or used to buy back shares.</font></p>
<p><font face="serif" size="2"><i>Continue to develop its people</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High quality service levels and well trained staff are seen as vital to the success of a hotel. To ensure superior service and the brand promise outlined above, SCH believes in investing in  training and development of people. Recent initiatives include elements of the Holiday Inn Hallmarks program, and SCH recently successfully completed one of the largest single training efforts in  its history by training over 40,000 InterContinental hotel&nbsp;employees in its new ICONS program of customer service standards. (For managed hotels, such as some&nbsp;InterContinental hotels, in  general, only the hotel manager is employed by SCH and the&nbsp;remaining hotel staff are usually employees of the individual hotel owner. In the United States, however, SCH sometimes employs the  hotel&#146;s staff. As such, not all 40,000 employees were staff of SCH.)</font></p>
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<p><font face="serif" size="2"><b>Segmental Results</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows turnover and operating profit of SCH by activity in US dollars, and the percentage contribution for each of the three fiscal years ended September&nbsp;30, 2002, 2001  and 2000.</font></p>
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    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
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    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
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    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
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    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
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    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
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    <td valign=bottom><font face="serif" size="2"><b>Turnover</b> (1)</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Americas</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">466</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">535</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">529</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">288</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">301</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">297</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and upscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">666</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">516</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">862</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,502</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">EMEA</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,088</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">979</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">853</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">121</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">118</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">971</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">145</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">141</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,726</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Operating Profit before
      Exceptional Items</b> (2)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Americas</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and upscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">68.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">345</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">353</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">EMEA</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">145</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">184</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">290</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">257</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25.1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7.8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9.5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td valign=bottom><font face="serif" size="2">Other (3)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(97</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(48</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">387</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">613</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">Amounts are reported by origin.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Operating profit excludes profits/(losses) on sale of fixed assets and operations and other exceptional items.</font></td>
  </tr>
 </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(3)</font></td>
    <td><font face="serif" size="2">Other includes central service costs, dividends received from FelCor Lodging Trust Inc., goodwill amortization, significant contract termination receipts, rebates and other non-trading items.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">27</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p28"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows turnover and operating profit of SCH by activity in pounds sterling, and the percentage contribution for each of the three fiscal years ended September&nbsp;30, 2002,  2001 and 2000.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>%</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Turnover</b> (1)(2)</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Americas</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">316</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">372</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">341</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">195</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and upscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">73</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">464</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">332</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,045</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">864</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">EMEA</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">737</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">680</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">550</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">750</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">626</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,532</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,896</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,581</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Operating Profit before Exceptional
      Items</b> (1)(3)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Americas</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Midscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">135</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">156</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">135</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and upscale franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">EMEA</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned and leased</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">134</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed and franchise</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">202</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2">Asia Pacific</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24.8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7.7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9.5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td valign=bottom><font face="serif" size="2">Other (4)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(65</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(33</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">427</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">376</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The results of SCH overseas operations have been translated into sterling at weighted average rates of exchange for the year. In the case of the US dollar, the translation rates are 2002: &pound;1=$1.48; 2001: &pound;1=$1.44; and 2000 &pound;1=$1.55.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Amounts are reported by origin.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(3)</font></td>
    <td><font face="serif" size="2">Operating profit excludes profits/(losses) on sale of fixed assets and operations and other exceptional items.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(4)</font></td>
    <td><font face="serif" size="2">Other includes central service costs, dividends received from FelCor Lodging Trust Inc., goodwill amortization, significant contract termination receipts, rebates and other non-trading items.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Operations</b></font></p>
<p><font face="serif" size="2"><i>Ownership Model</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profits are broadly balanced between owned hotels, with their volatility but opportunity for greater profits, and managed/franchised hotels, with their more stable income streams.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH operates through four different models to ensure a balance of growth, returns, risk and reward. These can be summarized as follows:</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">28</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">ownership or lease, (&#147;O &amp; L&#148;) where a Group company both owns (or leases) and operates a hotel and, in the case of ownership, takes all the benefits and risks of ownership. Rooms owned or leased by the Group totalled 42,642 at the end of fiscal 2002, together representing 8% of SCH&#146;s rooms;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">joint venture, where a Group company directly or indirectly holds an equity interest in the hotel and receives a share of the benefits and risks of ownership in proportion to its stake. A management contract is generally entered into in conjunction with the joint venture. SCH has 21 joint venture arrangements worldwide;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">management contract, where a Group company manages the hotel for third-party owners under a SCH brand in return for a management fee and provides the system infrastructure necessary for the hotel to operate. Management contract fees are usually linked to a hotel&#146;s revenues and often include an additional incentive fee, linked to profitability or cash flow. SCH operated 86,761 rooms under management contracts at the end of fiscal 2002, representing 17% of its hotel rooms; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">franchise, where Group companies neither own nor manage the hotel, but provide the use of the brand, systems and expertise. SCH derives revenues from a royalty or licensing fee payable by the franchisee for the right to operate under a SCH brand. This fee is often based on a percentage of room revenue. SCH operated 386,122 rooms under a franchise agreement at the end of fiscal 2002, with 87% of SCH&#146;s rooms in the Americas operating under this model. Franchised hotels represent 75% of SCH&#146;s total rooms.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the number of hotels and rooms owned, operated or franchised by SCH at the end of each of the last three fiscal years.</font></p>
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  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Owned or<br> Leased</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Management<br> Contracts and<br> Joint Ventures</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Franchised</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Total</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>As at September 30</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
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    <td valign="top">
      <hr align="left" width="80" size="1" noshade></td>
    <td valign="top">
<hr noshade size="1"></td>
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<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td valign="top">
<hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42,642</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">314</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">86,761</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,821</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">386,122</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,325</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">515,525</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td height="16">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42,531</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">318</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85,893</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,758</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">386,272</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,267</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">514,696</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">105</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27,916</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">334</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91,119</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,624</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">372,029</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,063</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">491,064</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most hotels in the SCH system pay assessments to fund the marketing and reservation costs of the SCH system. For fiscal 2002, the total contribution to the systems funds covering marketing  (including loyalty program) and reservation costs amounted to approximately $350 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH sets quality and service standards for all of its hotel brands (including those operated under management contract or franchise arrangements) and operates a customer satisfaction and  hotel quality measurement system to ensure those standards are met or exceeded. The quality measurement system includes an assessment of both physical property and customer service standards.</font></p>
<p><font face="serif" size="2"><i>Business structure</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SCH business is currently operated under the following structure:</font></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">a global &#147;system&#148; for reservations, IT, internet and loyalty scheme (Priority Club Rewards);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">global and regional brand management &#150; the InterContinental brand is managed globally but other brands are managed predominantly by region reflecting their more regional/ domestic nature; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">regional operational management.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This structure is currently the subject of an organizational review and is expected to change over the coming months.</font></p>
<p><font face="serif" size="2"><i>Global System</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Across all its brands, the objective is to further exploit the scale and strength of SCH&#146;s global system to drive revenue and operating efficiencies. The elements of the global system include:</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">29</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Priority Club Rewards:</i> This is one of the largest loyalty programs in the hotel industry, with approximately 15 million members, an increase in fiscal 2002 of almost 20%. It also has alliances  with 45 airlines, which enable members to collect frequent flyer miles. In addition, the InterContinental business operates a separate recognition program aimed at providing a superior level of  service to its members, the &#147;Six Continents Club&#148;, with over 120,000 members. SCH also has alliances with external partners such as car hire companies and credit card companies, which provide  exposure and access to SCH&#146;s system.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Central Reservation System:</i> SCH operates the HolidexPlus and Holidex central reservation systems. The HolidexPlus and Holidex systems receive reservation requests entered on terminals  located at a vast proportion of its reservation centers, as well as from global distribution systems operated by a number of major corporations and travel agents. Where local hotel systems allow, the  HolidexPlus and the Holidex systems immediately confirm reservations or indicate alternative accommodation available within SCH&#146;s network. Confirmations are transmitted electronically to the  hotel for which the reservation is made.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2002, it is estimated that these reservation systems (which include company reservation centers, global distribution systems and internet reservations) delivered around 26% of SCH&#146;s  global hotel room nights sold.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Sales and Marketing:</i> SCH has in excess of $130 million annually to invest in sales and marketing activity to support the brands. This expenditure is funded from fees collected from virtually  all the hotels (with the exception of the InterContinental hotels) in the system, whether or not they are owned by SCH. These fees are then spent regionally on driving revenue and brand awareness or,  in the case of sales investments, targeting segments such as corporate accounts, travel agencies and meeting organizers. The fees are contractual and represent a significant source of marketing funds  which are mainly not dependent on SCH&#146;s profit performance.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The strategic initiatives for the global system as a whole include:</font></p>
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    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">continued focus on enrollments in Priority Club Rewards and increasing SCH&#146;s share of each guest&#146;s total hotel spend;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">investment in national and global sales forces;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">effective use of the network of reservation centers; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(D)</font></td>
    <td><font face="serif" size="2">maximizing the benefit from global system funds.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="serif" size="2"><b>Brands</b></font></p>
<p><font face="serif" size="2"><i>Brands Overview</i></font></p>
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  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Brands</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Room Numbers*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Hotels*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%">
        <hr align="left" width="100" size="1" noshade>
      </div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">InterContinental</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">44,545</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">135</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55,935</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">293,346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,567</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109,205</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,352</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,435</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,059</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">515,525</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,325</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">As at the end of fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">30</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p31"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>InterContinental</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> O &amp; L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> O &amp; L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Asia Pacific</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Average Room Rate $*</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">133</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">164</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Room Numbers**</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,208</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,421</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21,256</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,392</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,081</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2"> For fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2"> As at the end of fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;InterContinental was acquired in March 1998 and is SCH&#146;s global upper upscale hotel brand. The hotels are targeted at both business and leisure guests. InterContinental hotels are generally  situated in prime locations in major cities and key resorts around the world and provide high quality amenities, generally reflecting the local culture. There were 135 InterContinental hotels in more  than 60 countries which represented 9% of all SCH&#146;s hotel rooms at the end of fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;InterContinental hotels are principally owned, leased or managed by the Group. The brand is one of the top international upper upscale hotel brands based on room numbers and has more than  50 years of heritage in the segment. SCH&#146;s competition includes international luxury chains (for example Four Seasons and Ritz Carlton) and upper upscale chains (for example, Marriott, Hilton,  Hyatt and Westin). InterContinental hotel rooms are generally priced between these two segments.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The strategic initiatives for the InterContinental brand are to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">invest in brand reshaping and build equity through the &#147;<i>we know what it takes</i>&#148; marketing campaign and ICONS program;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">complete the refurbishment of leading InterContinental hotels &#150; to date projects have been completed in Miami, San Francisco, San Juan, New York, Houston, Chicago, Madrid, Vienna, Budapest and Rome, and projects in progress include Cannes and Paris Le Grand;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">expand the brand into key network cities and resorts where guests value InterContinental hotels and where global international travel flows are largest, and therefore also to complete the construction of the InterContinental in Atlanta (expected to open in 2004) and Boston (expected to open in 2005); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(D)</font></td>
    <td><font face="serif" size="2">leverage global sales via enhanced sales force resources, common IT platforms and marketing expenditure.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Crowne Plaza</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> O &amp; L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> O &amp; L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Asia Pacific</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Average Room Rate $*</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Room Numbers**</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13,815</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,867</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,410</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2"> For fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2"> As at the end of fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crowne Plaza is SCH&#146;s global upscale hotel brand which has been developed as a stand alone brand since acquisition of the Holiday Inn business and has grown to 191 hotels worldwide. The  brand is targeted at the business guest, with a particular focus on meetings and related services. The upscale Crowne Plaza hotels and resorts are predominantly located in major and secondary cities  and resorts around the world, typically in significant business centers, and provide the high level of comfort, amenities, services, facilities and meeting space expected of a full service hotel. Crowne  Plaza represented 11% of SCH&#146;s hotel rooms at the end of fiscal&nbsp;2002.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">31</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p32"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The majority of the upscale Crowne Plaza hotels and resorts are franchised hotels. 56% of Crowne Plaza brand properties are in the Americas. The other key competitors in this segment  include Sheraton, Marriott, Hilton, Double-Tree, Wyndham and Radisson.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The strategic initiatives for the brand are to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">invest in brand positioning and build brand equity through the &#147;<i>the place to meet</i>&#148; marketing campaign and the launch of the program of brand service and product standards known as &#147;KEYS&#148; across the estate; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">drive brand expansion through owned, managed and franchised flagship units in North America and gateway cities elsewhere.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Holiday Inn</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br>
      Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br>
      O&amp;L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br>
      Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br>
      O&amp;L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Asia
      Pacific</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Average
        Room Rate $*</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Room
        Numbers**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220,706</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,665</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15,367</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">For fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2"> As at the end of fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holiday Inn is SCH&#146;s midscale full service brand. Holiday Inn International was acquired in 1988 with the remaining North American business of Holiday Inn being acquired in 1990. In the  last ten years, the brand has grown in EMEA and Asia Pacific, while its number of hotels has declined in the Americas, although this decline has been more than offset by the growth in Express. The  brand is targeted at the mid-market guest and is SCH&#146;s largest global hotel brand based on room numbers. Holiday Inn is also one of the world&#146;s most recognized hotel brands. SCH seeks to offer,  through its Holiday Inn brand, good value for money with appropriate standards of products and services.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were 1,567 Holiday Inn hotels located in more than 70 countries which represented 57% of all SCH&#146;s hotel rooms at the end of fiscal 2002. The brand is predominantly franchised.  Holiday Inn is the most &#147;stayed at&#148; hotel brand in America, with 90% of travelers interviewed claiming to have stayed at a Holiday Inn hotel at some point in their lives &#150; more than any other hotel  brand. 73% of the Holiday Inn branded hotels are located in the Americas, where the brand enjoys a considerable RevPAR premium to many of its competitors.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As well as having the largest market share in the US midscale full service segment, the brand has a significant position in the midscale segment in several European countries. For example, it  is the largest midscale brand in the UK and the second largest midscale brand in Italy based on room numbers. In Asia Pacific, Holiday Inn is the largest midscale brand in China and has a strong  position in Australia.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The strategic initiatives for the Holiday Inn brand are to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">deploy the new design of Holiday Inn hotels in the Americas, either owned or franchised, to refresh the brand standards;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">maintain the current RevPAR premiums the brand enjoys over many of its competitors in the Americas through innovative marketing, and by leveraging system scale;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">continue the Holiday Inn UK refurbishment program in order to drive returns on the Posthouse acquisition and to capitalize on its leading position in the UK;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(D)</font></td>
    <td><font face="serif" size="2">build on the Hallmarks program in EMEA to encourage new guests and retain existing guests;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(E)</font></td>
    <td><font face="serif" size="2">drive additional Priority Club Rewards enrollments; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(F)</font></td>
    <td><font face="serif" size="2">build depth in selected key domestic markets such as Germany, Italy and China through partnership, franchises, conversions and acquisitions.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">32</font></p>
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<a name="p33"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>Express</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> Total***</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA<br> O&amp;L****</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Asia Pacific</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Average Room Rate $*</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">68</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Room Numbers**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98,655</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">768</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">284</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2"> For fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2"> As at the end of fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">***</font></td>
    <td><font face="serif" size="2">No O&amp;L Americas</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">****</font></td>
    <td><font face="serif" size="2">EMEA O&amp;L Express are new properties that have recently opened</font></td>
  </tr>


</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Express is SCH&#146;s midscale limited service hotel brand. SCH recognized the need for a brand in&nbsp;this category in the early 1990s and subsequently developed Express to further the reach of the  Holiday Inn brand and enter the midscale limited service segment. The brand has grown rapidly and aims to provide the&nbsp;room&nbsp;quality of midscale hotels without the associated full range of  facilities. The brand is targeted at the value-conscious guest, as best evidenced by the &#147;<i>Stay Smart</i>&#148; marketing campaign in the US.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were 1,352 Express hotels worldwide, which represented 21% of all SCH&#146;s hotel rooms at the end of fiscal 2002. Express is the third largest brand in the US midscale limited service  segment based on room numbers, and over 90% of the Express branded rooms are located in the Americas. Express hotels are almost entirely franchised. The brand enjoys a RevPAR premium to  many of its competitors in the US. Express also has a solid and growing brand presence in the UK market where it faces competition from a variety of local market brands and independent hotels.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The strategic initiatives for the Express brand are to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">continue to grow through new franchises;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">further expand the Express brand throughout Western Europe;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">target capital investment to build strong positions in selected countries such as Germany and increase franchisee demand; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(D)</font></td>
    <td><font face="serif" size="2">begin the roll-out of Express in Asia Pacific, commencing in China.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Staybridge Suites</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas<br> O &amp; L</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Average Room Rate $*</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Room Numbers**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,435</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">For fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2">As at the end of fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staybridge Suites is SCH&#146;s organically developed upscale extended stay brand and offers self-catering services and amenities designed specifically for those on extended travel. The rooms  provide more space than the typical hotel room, offering studios and one and two bedroom suites, with cooking and other facilities available in each room/suite. As at the end of fiscal 2002, there  were 48 Staybridge Suites hotels, all of which are presently located in the Americas, which represented 1% of all SCH&#146;s hotel rooms at the end of fiscal 2002. The first Staybridge Suites hotel was  opened in 1998, with the fiftieth Staybridge Suites hotel following in November 2002, thereby demonstrating the fastest roll out of fifty properties in its segment. Staybridge Suites brands are divided  broadly between franchised and owned and leased models. The primary competitors include, among others, Residence Inn, Homewood, Summerfield and Hawthorne.</font></p>

<p></p>
<p align=center><font face="serif" size="2">33</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The future strategic initiatives for the Staybridge Suites brand are to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">continue the successful roll-out of the Staybridge Suites product to build critical mass through franchises or management contracts;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">selectively invest in owned and leased assets where necessary to anchor the brand and secure key locations; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">actively explore options to optimize and potentially recycle the invested capital in the Staybridge Suites asset base.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Geographical Analysis</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Americas</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>EMEA</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Asia Pacific</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Room Numbers %*</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotel level operating profit % (before overheads and exceptional items)**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
 <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr> <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">As at the end of fiscal 2002</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2">For fiscal 2002</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">34</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With its worldwide hotel operations, SCH is somewhat less dependent than certain of its competitors on the business cycle of any one country or region, although the US market is  predominant. The following table shows information concerning the geographical locations of SCH hotels by brand, as of September 30, 2002.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Owned or<br> Leased</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Management<br> Contracts and<br> Joint Ventures</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Franchised</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>As at September 30, 2002</b><br>
        </font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><hr align="left" width="105" size="1" noshade></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United States</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">3,451</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">1,513</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">5,114</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,993</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,485</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26,351</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18,080</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">956</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">179,244</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,021</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198,865</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">[&#151;]</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">823</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92,556</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,193</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">93,379</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,334</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,981</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,315</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,608</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,608</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,319</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">104</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30,509</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,233</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">291,804</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,374</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">331,632</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest of Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">970</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,992</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,094</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">950</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,359</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,444</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">121</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21,841</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,276</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,276</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">120</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">120</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,507</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,526</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">203</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33,657</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">230</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41,690</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,421</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,645</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,208</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,435</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,665</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">65</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19,524</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,077</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198,517</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220,706</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">823</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,236</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97,832</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98,655</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,981</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,435</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,608</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,608</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,826</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36,035</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,436</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">325,461</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,604</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">373,322</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United Kingdom</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">942</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">440</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,382</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,716</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,746</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12,717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">431</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,086</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,234</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">120</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,772</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">73</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,892</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15,574</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,067</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,692</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27,333</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Europe</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,065</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,169</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,034</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,268</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,151</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,469</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,234</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,854</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,650</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,064</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,723</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">175</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25,437</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">648</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,402</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,555</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,526</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">430</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,956</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,040</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27,823</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46,070</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">The Middle East and Africa</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">385</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,804</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,417</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,606</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,420</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,215</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,160</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12,174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">279</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">279</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">385</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15,517</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">120</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28,093</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total EMEA</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,392</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12,413</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,451</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">69</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21,256</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,867</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,085</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,863</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13,815</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15,367</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,509</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31,969</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">334</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">768</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,993</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">279</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">430</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,314</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26,999</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23,791</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50,706</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">570</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101,496</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">35</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p36"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Owned or<br> Leased</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Management<br> Contracts and<br> Joint Ventures</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Franchised</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>As
        at September 30, 2002</b> </font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Hotels</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> Rooms</b></font></td>
    <td valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td align="center">
      <hr align="left" width="105" size="1" noshade>
    </td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>
      <hr noshade size="1"></td>
    <td>
      <hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Far East
        and Australasia (Asia &nbsp;Pacific)</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">730</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">5,235</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">3,116</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%" align=right valign=bottom><font face="serif" size="2">9,081</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">838</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,852</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,720</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,410</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,047</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,945</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,803</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18,795</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">284</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">202</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,808</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">127</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,137</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom">
<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,817</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26,935</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,955</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">151</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40,707</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;InterContinental</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10,543</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">71</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22,293</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,709</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">135</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44,545</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Crowne Plaza</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,991</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,372</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">104</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28,572</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55,935</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,079</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">144</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37,978</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,315</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">235,289</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,567</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">293,346</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Holiday Inn Express</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">768</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,423</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,334</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107,014</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,352</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109,205</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staybridge Suites</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,454</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,981</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,435</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other brands</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,807</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,695</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">557</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,059</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
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<hr noshade size="1"></td>
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<hr noshade size="1"></td>
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<hr noshade size="1"></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
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<hr noshade size="1"></td>
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<hr noshade size="1"></td>
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    <td valign="bottom">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total</font></div></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42,642</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">314</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">86,761</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,821</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">386,122</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,325</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">515,525</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While SCH&#146;s hotel brands are in the main recognized globally, operational management is currently divided into three main geographic regions &#150; the Americas, EMEA and Asia Pacific. In  terms of overall hotel level operating profit before overheads and exceptional items, the Americas represented 52%, EMEA represented 40% and the Asia Pacific region represented 8% in fiscal  2002.</font></p>
<p><font face="serif" size="2"><i>Americas</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Americas, the largest proportion of rooms are operated under the franchised business model primarily in the midscale segment (Holiday Inn and Express). Similarly, in the upscale  segment, Crowne Plaza is predominantly franchised, whereas InterContinental currently has a bias toward ownership and management. With over 2,600 hotels, the Americas represented the bulk of  SCH&#146;s hotels and approximately 52% of SCH&#146;s hotels level operating profit before overheads and exceptional items in fiscal 2002. The key profit producing region is the US, although SCH also has  representation in the branded segment in each of Latin America, Canada, Mexico and the Caribbean.</font></p>
<p><font face="serif" size="2"><i>EMEA</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EMEA&#146;s profit stream is weighted toward ownership, particularly in respect of Holiday Inn and InterContinental hotels, although there are also managed and franchised hotels for most of its  brands. Comprising 570 hotels in total at the end of fiscal 2002, EMEA represented approximately 40% of SCH&#146;s hotels level operating profit before overheads and exceptional items in fiscal 2002.  The key profit producing regions are the UK, with a base of owned Holiday Inn hotels, and the main European gateway cities (for example, Paris, London and Frankfurt) with owned and leased  InterContinental hotels.</font></p>
<p><font face="serif" size="2"><i>Asia Pacific</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asia Pacific represented 8% of SCH&#146;s hotel rooms and 8% of SCH&#146;s hotels level operating profit before overheads and exceptional items in fiscal 2002. Comprising 151 hotels in total, SCH  has a strong and growing presence in Asia Pacific, an important market as currently underdeveloped parts of the Asia Pacific market are expected to generate significant growth in the hotel and  tourism industry over the next decade. The region represents a good source of growth due to the current low penetration of brands offering the opportunity for SCH&#146;s brands to build strong positions  in key markets.</font></p>
<p><font face="serif" size="2"><b>System Pipeline</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002 SCH had formally approved franchise applications for 191 hotels with approximately 20,400 rooms, though the hotels had yet to enter the system. In addition, SCH had  signed management contracts on a further 29 hotels (8,600 rooms), and these are expected to enter the system over the</font></p>
<p></p>
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<p><font face="serif" size="2">next two years. In addition five owned and leased hotels, with approximately 950 rooms, are also due to enter the system. Approximately  20% of the rooms at September 30, 2002 in the pipeline were in the upper upscale and upscale InterContinental and Crowne Plaza brands.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no assurances that all of these hotels will open or enter the system. The construction, conversion and development of hotels is dependent upon a number of factors, including meeting  brand standards, obtaining the necessary permits relating to construction and operation, the cost of constructing, converting and equipping such hotels and the ability to obtain suitable financing at  acceptable  interest rates. The supply of capital for hotel development in the United States may not continue at previous levels and consequently the systems pipeline could decrease.</font></p>
<p><font face="serif" size="2"><b>Developments</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>InterContinental Hotels.</i> Since the acquisition of the InterContinental business, a net 18 InterContinental hotels have been added to the portfolio including, in July 1999, a 208 room hotel on  Central Park South in New York, for a total consideration of $62.5 million. On December 1, 1999, SCH acquired the remaining 50% stake in the Hotel InterContinental London Hyde Park that Six  Continents did not already own, for a consideration of &pound;56&nbsp;million. During fiscal 2000, SCH acquired InterContinental hotels in Austin, Texas and San Juan, Puerto Rico. In fiscal 2001, SCH  acquired the Hotel InterContinental Hong Kong (see &#147;Hotel InterContinental Hong Kong&#148; below), and the previously SCH managed Parkroyal Wellington was acquired and became the  InterContinental Wellington, New Zealand.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On 6 December, 2001, SCH announced plans to open its first InterContinental in Boston. This is expected to open in 2005.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH is carrying out a major refurbishment program at some of its leading InterContinental properties. By the end of fiscal 2002, refurbishment was completed at the InterContinental hotels in  Vienna, Budapest, Madrid, Miami, New York (Barclay), San Francisco and Chicago. The refurbishment of the Paris Le Grand and Cannes commenced in fiscal 2002. The Paris Le Grand closed in  December 2001 and is due to re-open in Spring 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Bristol Hotel Company.</i> As a result of a number of transactions during fiscal 1997 and 1998, Six Continents acquired a 9.9% stake in Bristol Hotels &amp; Resorts Inc (Bristol). In April 2000, Six  Continents completed the acquisition of the outstanding 90.1% stake in Bristol, for a total consideration of $157 million. At that time, Bristol leased or managed 112 hotels (of which 100 were  leased) from FelCor Lodging Trust Inc. (&#147;FelCor&#148;), including 59 hotels trading under the Holiday Inn brand name, 18 hotels under the Crowne Plaza brand name, six hotels under the Holiday Inn  Express brand name and 29 other hotels.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2001, the Bristol business was fully integrated into the SCH Americas business. This integration involved terminating a number of non-SCH branded operating leases and  converting all the remaining operating leases to management contracts (mainly from July 1, 2001).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Staybridge Suites.</i> During fiscal 1999 SCH entered the extended-stay market with the introduction of Staybridge Suites by Holiday Inn. By September&nbsp;30, 2002, 48 hotels were open, while a  further 33 franchise agreements and one management contract had been signed.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>SPHC.</i> On January 17, 2000 Six Continents acquired the business of SPHC, which operated 59 hotels in the Asia Pacific region under the Parkroyal and Centra brands, for Australian $313  million. During fiscal 2001, 8&nbsp;former Parkroyal and 10 former Centra hotels were converted to SCH brands and in fiscal 2002 a further six hotels were converted, including one to the  InterContinental brand. At September 30, 2002, SCH had 151 hotels and over 40,700 rooms in the Asia Pacific market.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Posthouse.</i> On April 4, 2001 Six Continents announced that it had acquired the entire business of Posthouse for a consideration of &pound;810 million. Posthouse consisted of 79 midscale hotels with  12,333 rooms, of which 77 hotels were owned or on long leases and two were management contracts. 78 of the hotels were in the United Kingdom and one in the Republic of Ireland. By September  30, 2002, 67 of the Posthouse hotels had been re-branded as Holiday Inn hotels, and eight had been disposed of. A development site in Oxford, acquired as part of the business, opened as a Holiday  Inn in June 2001.</font></p>
<p></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Hotel InterContinental Hong Kong.</i> On May 21, 2001 Six Continents announced that it had entered into an agreement to take ownership of the Regent Hotel in Hong Kong, for a consideration  of &pound;241 million ($346 million). The hotel, renamed the Hotel InterContinental Hong Kong, was managed by Six Continents hotels from June 1, 2001, and the acquisition was completed at the end of  August 2001.</font></p>
<p><font face="serif" size="2"><b>Organizational Review</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management has recently begun a process in respect of SCH to:</font></p>
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    <td><font face="serif" size="2">redesign the organization to align it with the strategic priorities and speed up decision making;</font></td>
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    <td><font face="serif" size="2">change the management team to ensure the right people are in the right jobs;</font></td>
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    <td><font face="serif" size="2">reduce the cost base through eliminating unnecessary work and streamlining processes; and</font></td>
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    <td><font face="serif" size="2">optimize capital deployment through a rigorous hotel by hotel review to determine appropriate levels of ownership and capital expenditure.</font></td>
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<p><font face="serif" size="2"><i>Reducing Cost Base</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company expects to focus on making SCH an effective, streamlined business, capable of delivering the strategic priorities detailed above with the prime objective of driving value for the  Company&#146;s shareholders.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of these actions, the Company believes it will reduce annual ongoing overheads, excluding costs in hotels, against its cost base for fiscal 2003 by at least $50 million by the end of  2004. This sum is in addition to the elimination of an estimated $15 million in overhead costs proposed to be inherited by InterContinental PLC from Six Continents PLC as a result of the Separation.</font></p>
<p><font face="serif" size="2"><i>Capital Deployment</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has also commenced a rigorous review of SCH&#146;s capital asset base with the objective of optimizing capital intensity to enable capital to be released for debt reduction, share  repurchases and re-investment.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future capital expenditure has also been reviewed. From 2004 onward, other than specific refurbishment projects, annual maintenance expenditure on the hotel estate is expected to be  approximately &pound;100 million and expansionary capital expenditure will be limited to selective value-enhancing investment in strategically important assets or in assets generating superior returns.  Where appropriate this expenditure will be funded through cash from asset disposals.</font></p>
<p><font face="serif" size="2"><b>Internet</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the business-to-consumer field, sixcontinentshotels.com (previously basshotels.com), has been at the forefront of electronic hotel reservations since it was introduced in 1995. The Internet  continues to be an important communications and distribution channel for SCH sales. During fiscal 2002, 4.5 million room nights were booked via the various SCH brand websites. To maximize the  potential of these initiatives, in October 2000, SCH announced it was a founding partner, along with Marriott International, Inc., Hyatt Hotels Corporation and ClubCorp USA Inc., in Avendra LLC  &#151; an internet-enabled business-to-business hospitality procurement company. SCH became a partner in Open World, an internet travel portal that allows consumers easy access to SCH&#146;s room  inventory. In fiscal 2002, SCH, along with four other hotel chains, announced the formation of Hotel Distribution System (HDS), LLC, a venture that will market hotel rooms over the in
ternet  through multiple online sites. A further innovation during fiscal 2002 was the introduction of the &#147;Lowest Internet Rate Guarantee&#148; program, which promises customers that they would not find a  better hotel rate on the Internet than on SCH sites, or we would honor the lower rate, plus a further 10% reduction from that rate.</font></p>
<p><font face="serif" size="2"><b>Seasonality</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the performance of individual hotels and geographic markets might be highly seasonal, due to a variety of factors such as the tourist trade and local economic conditions, the  geographical spread of SCH&#146;s hotels</font></p>
<p></p>
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<p><font face="serif" size="2">in almost 100 countries and territories and the relative stability of the income stream from franchising activities diminish the effect of  seasonality on the results of SCH.</font></p>
<p><font face="serif" size="2"><b>Competition</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s hotels compete with a wide range of facilities offering various types of lodging options and related services to the public. The competition includes several large and moderate sized  hotel chains offering upper, mid and lower priced accommodation and also includes independent hotels in each of these market segments, particularly outside of North America where the lodging  industry is much more fragmented. Major hotel chains which compete with SCH include Marriott International, Inc., Starwood Hotels &amp; Resorts Worldwide, Inc., Choice Hotel International, Best  Western International, Hilton Hotels Corporation, Hilton Group plc, Cendant Corporation, Four Seasons Hotels Inc. and Accor SA.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p39a"></a>SOFT DRINKS
  &#150; THE BRITVIC GROUP</b></font></p>
<p><font face="serif" size="2"><b>Overview</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group holds a controlling interest in Britannia Soft Drinks Limited, the holding company for the Britvic Group, which is the second largest manufacturer of soft drinks, by volume, in the  United Kingdom. The ownership of Britannia Soft Drinks Limited is split between the Group (50% plus one share held through a subsidiary of the Company), Allied Domecq Overseas (Canada)  Limited and Whitbread Group PLC (both with 25% less a half share).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group owns an extensive portfolio of soft drinks brands that includes Robinsons, Tango, Britvic (juice and mixers), R Whites, Am&eacute;, J<sub>2</sub>O, Purdey&#146;s and Aqua Libra and has  exclusive rights in perpetuity to Red Devil in the United Kingdom and the Republic of Ireland. The Britvic Group also holds the exclusive franchise rights in Great Britain for the Pepsi and 7UP  brands under a bottling agreement (&#147;Bottling Agreement&#148;) dated January 5, 1987 with PBI. The Bottling Agreement expires at the beginning of 2007 and contains a change of control provision  which, although not triggered by the Separation, allows PBI to terminate upon a change of control of the Britvic Group. Sales of Pepsi drinks accounted for approximately 42% of total net sales for  the Britvic Group in 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group&#146;s operations are split between Britvic Soft Drinks Limited which includes the Pepsi, Tango, R&nbsp;Whites, Britvic (juice and mixers) and 7UP brands and Robinsons.  Robinsons Soft Drinks Limited, a direct subsidiary of Britvic, holds the major brands acquired since Britvic Holdings was initially set up by Six Continents, Allied and Whitbread in 1987. This  includes the Robinsons and Red Devil brands and also the Am&eacute;, Purdey&#146;s and Aqua Libra brands which were owned by Orchid Drinks Limited, a business acquired by the Britvic Group in July 2000.  Sales of Robinsons products accounted for approximately 28% of total net sales for the Britvic Group in 2002. PBI owns a 10% stake in Britvic Holdings Limited, the holding company for Britvic  Soft Drinks Limited but if the Bottling Agreement is terminated it will have the right to put its shares to Britvic at a price to be agreed or, failing which, at fair market value.</f
ont></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group generated operating profits before exceptional items of &pound;57 million on revenues of &pound;571 million in 2001, and in 2002 the Britvic Group generated increased operating profits  before exceptional items of &pound;63 million on revenues of &pound;602 million.</font></p>
<p><font face="serif" size="2"><b>Strategy</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The goal for the Britvic Group is for it to become the United Kingdom&#146;s leading soft drinks manufacturer. To achieve this goal, the strategy for the Britvic Group is to build its share of the  major volume and value segments within the carbonated-soft drinks and still drinks markets. The Britvic Group continues to increase its market share by supporting its existing portfolio of brands  and by a program of new product development and, where appropriate, acquisition.</font></p>
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    <td><font face="serif" size="2">The key aspects of the Britvic Group&#146;s business strategy are to:</font></td>
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    <td width="3%"><font face="serif" size="2">(A)</font></td>
    <td><font face="serif" size="2">grow aggressively the still drinks segment and drive the Britvic Group&#146;s growth above the market rate;</font></td>
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<p></p>
<p></p>
<p align=center><font face="serif" size="2">39</font></p>
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    <td width="3%"><font face="serif" size="2">(B)</font></td>
    <td><font face="serif" size="2">grow the Britvic Group&#146;s current share of the carbonates segment by focusing on investment and innovation;</font></td>
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    <td width="3%"><font face="serif" size="2">(C)</font></td>
    <td><font face="serif" size="2">become the customer&#146;s supplier of choice;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="serif" size="2">(D)</font></td>
    <td><font face="serif" size="2">be the most efficient company in the fast moving consumer goods sector in the United Kingdom; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="serif" size="2">(E)</font></td>
    <td><font face="serif" size="2">make the Britvic Group a great place to work.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="serif" size="2"><b>Britvic&#146;s Business and Brands</b></font></p>
<p><font face="serif" size="2">The following are the Britvic Group&#146;s main brands:</font></p>
<p><font face="serif" size="2"><i>Carbonates</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Pepsi</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pepsi is the second largest soft drinks brand sold in the UK market. The brand is positioned as a cola for youth, a position that has benefited from a high level of marketing activity. Pepsi  sponsors music and sport celebrities for its advertising including David Beckham, Britney Spears, Gareth Gates and Shakira.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>7UP</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supported by its &#147;<i>Keep Cool. Think Clear</i>&#148; message, 7UP has become the second largest lemon and lime carbonated soft drink in the United Kingdom.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Tango</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tango is the number three fruit flavored carbonate in the UK market. The brand&#146;s success has been built on industry leading advertising and as a result, Tango has high appeal to the youth  advertisement awareness market.</font></p>
<p><font face="serif" size="2"><i>Stills</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Robinsons</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robinsons is the market leader in the dilutables sub-sector by value in the United Kingdom, and the second largest grocery soft drinks brand by value in the United Kingdom. Since 1998, the  brand&#146;s market share has increased significantly. The Britvic Group has utilized the strength of the brand by creating a number of sub-brands such as &#147;High Juice&#148;, &#147;Fruit &amp; Barley&#148; and &#147;Fruit  Shoot&#148; to appeal to different sectors within the market.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Britvic </b>(juice and mixers)</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic brand is the leader in the UK on-premise juices segment. While sales of traditional mixers such as Indian Tonic Water are declining, J<sub>2</sub>O, a premium exotic juice-based soft drink,  which was launched in fiscal 1999, has more than offset this lost volume. In 2002, J<sub>2</sub>O sales increased by more than 100%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>R Whites Lemonade</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R Whites Lemonade is a brand leader in premium lemonades in the UK on-premise sector.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Adult Drinks</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Orchid Drinks Limited was acquired in July 2000 to provide the Britvic Group with established brands in the growing UK adult/functional drink sectors. The product range includes Am&eacute;,  Aqua Libra, Purdey&#146;s and Norfolk Punch. The Britvic Group acquired the UK and Republic of Ireland rights to the energy drink Red Devil in August 2002.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">40</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group also has a supply agreement for the sale of Abbey Well water for resale to licensed outlets and impulse buy outlets (excluding major multiples such as supermarket chains).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to successful brand acquisitions, the Britvic Group has successfully developed and maintained its portfolio of brands. It has achieved this through an active new product  development program to generate new sub-brands and packaging initiatives. Notable among these successes are new sub-brands, such as J<sub>2</sub>O and Robinsons&#146; Fruit Shoot. In addition, the Britvic  Group has introduced a series of new packaging types such as a children&#146;s 250 ml pack for the Tango brand together with successful flavor extensions such as Tango Cherry and limited edition  seasonal Robinsons flavors.</font></p>
<p><font face="serif" size="2"><b>Competition in the Soft Drinks Market</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group&#146;s brands compete with many multi-national, national and regional producers and private label suppliers. The Britvic Group&#146;s main competitor in the United Kingdom is  Coca-Cola Enterprises (Coca-Cola, Fanta, Sprite, Dr Pepper, Schweppes and Lilt), which is the overall soft drinks market leader (in&nbsp;terms of market share). The Britvic Group also faces significant  competition from GlaxoSmithKline (Lucozade and Ribena), AG Barr (Irn-Bru and Orangina), Proctor &amp; Gamble (Sunny Delight) and Tropicana UK&nbsp;Limited (fruit juices), which are each strong  within specific sectors of the market. A number of smaller manufacturers dominate their individual sector and their combined influence is becoming more important. Another significant player is Red  Bull (energy drink).</font></p>
<p><font face="serif" size="2"><b>Production and Distribution</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2002, the Britvic Group had six production plants which produced over 1.2 billion liters of soft drinks during the year and operated 12 retail distribution depots as well as a national  distribution center for supplying the on-trade and off-trade.</font></p>
<p><font face="serif" size="2"><b>Marketing</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The success of the Britvic Group&#146;s brands depends upon their quality and value for money and on brand marketing. Over the past three years, the Britvic Group spent an average of  approximately 19% of gross revenues on brand advertising, promotional and other related expenditure.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Britvic Group products are available in a wide variety of outlets in the United Kingdom, including grocery stores, supermarkets, gas stations, other non-licensed premises, off-licenses and  restaurants, pubs, clubs and other licensed premises.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Britvic Group has more than 52,000 dispense units installed in pubs and other trade outlets, including catering establishments. These installations produce mainly carbonated soft drinks  from concentrates supplied by the Britvic Group. It also supplies over 19,000 vending machines which dispense a range of soft drinks in both cans and plastic bottles.</font></p>
<p><font face="serif" size="2"><b>Reliance on Supplies</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fruit juice concentrates and other fruit raw materials, which are important ingredients for many of the Britvic Group&#146;s products, are obtained from various sources worldwide. One of the  principal raw materials used by the Britvic Group is sugar. Adequate supplies of bulk sugar are available for the foreseeable future, although the Britvic Group is obliged to purchase its sugar  requirements in the EU market, where prices are considerably higher than in other markets.</font></p>
<p><font face="serif" size="2"><b>Reliance on Customers</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the sale of the Group&#146;s brewing operation to Interbrew on August 22, 2000, the Britvic Supply Agreement requires the Britvic Group to sell soft drinks to Interbrew for a term of  five years. Interbrew in turn is required to purchase certain quantities of soft drinks to meet its minimum purchasing requirements.</font></p>
<p></p>
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<p align=center><font face="serif" size="2">41</font></p>
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<p><font face="serif" size="2"><b>Seasonality</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The volume of sales in the soft drinks business may be affected by weather and is seasonal, peaking in the summer months and at the time of festive holiday occasions, such as Christmas (the  first and fourth quarters of the Group&#146;s fiscal year).</font></p>
<p><font face="serif" size="2"><b>Regulation</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Food Safety Act 1990 effectively raised the quality standards demanded in the soft drinks industry. The&nbsp;Britvic Group has actively participated in the industry discussion processes  which, it is believed, will ultimately result in legislation governing soft drinks products sold in the EU market.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p42a"></a>RETAIL &#150;
  SIX CONTINENTS RETAIL</b></font></p>
<p><font face="serif" size="2"><b>Overview</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents Retail is the United Kingdom&#146;s leading operator of managed pubs, bars and restaurants (in terms of sales and number of sites), with a particular focus on high-take sites. SCR&#146;s  high quality, predominantly freehold estate comprises over 2,000 sites, spread throughout the United Kingdom and includes over 40 sites in Germany. As at September 30,&nbsp;2002, SCR had tangible  fixed assets with a net book value of approximately &pound;3.5 billion, including &pound;0.7 billion of revaluation.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR has a wide brand portfolio, with a number of segment-leading and well established brands providing targeted offers for a variety of consumer groups, locations and occasions.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following chart depicts how SCR&#146;s UK brands are targeted by location or by primary occasion (drinks or food), together with the number of sites for each as at September 30, 2002:</font></p>
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    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><div align="right"><font face="serif" size="1"><b>Drinks-led</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><div align="right"><font face="serif" size="1"><b>Food-led</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td colspan=7>
      <hr noshade size="1"> </td>
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  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;<b>Residential</b></font></div></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Ember Inns (137)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Vintage Inns (196)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Sizzling Pub Co.
      (96)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Harvester (150)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Scream (90)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Toby Carvery (70)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Arena (53)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Innkeeper&#146;s
      Fayre (24)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Unbranded (466)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Unbranded (97)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td colspan=7>
      <hr noshade size="1"> </td>
  </tr>
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    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;<b>City
        Center</b></font></div></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">O&#146;Neill&#146;s
      (91)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">All Bar One (53)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Goose (44)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Browns (15)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Edward&#146;s (40)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Unbranded (0)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Flares (22)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">Unbranded (353)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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</table>
<p></p>
<p><font face="serif" size="2">SCR&#146;s accommodation brands (Express by Holiday Inn and Innkeeper&#146;s Lodge), the ten pin bowling operation (Hollywood Bowl) and the branded bar and brasserie chain in Germany (Alex) are not  shown in the chart above.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within each quadrant, the relevant brands target different consumer groups or occasions. For example, within residential, drinks-led sites, Ember Inns is for the quiet drink occasion; Sizzling  Pub Co. is focused on local drinking with &#145;value for money&#146; pub food; Scream is aimed at students; and Arena targets sports and entertainment occasions. In total over 1,100 of the SCR&#146;s sites are  branded, of which over 800 are in residential areas.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition SCR has a large estate of over 900 unbranded pubs and restaurants including those forming the conversion pipeline to its brands and formats.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, SCR generated operating profits of &pound;288 million on revenues of &pound;1,475 million, delivering a post-tax cash return on cash capital employed of over 10%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s senior management team has built and developed its business by:</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">42</font></p>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">re-aligning its property portfolio thorough carefully chosen disposals and targeted acquisitions;</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">developing, rolling out and sustaining high quality and distinctive brands (such as Vintage Inns, Toby Carvery, All Bar One, O&#146;Neill&#146;s and Ember Inns) which cater to modern eating and drinking trends and which have broad demographic appeal, targeting the wider audience that now frequent pubs and restaurants;</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">acquiring selected brands (Harvester, Browns and Alex) to complement SCR&#146;s existing portfolio and rolling them out;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">developing its expertise and infrastructure in purchasing and logistics management, particularly focusing on realizing economies of scale across all categories of the supply chain (especially food) to obtain better quality products on better terms; and</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><font face="serif" size="2">introducing reward packages for its licensed house managers to encourage their participation in growing the profits of the business.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The growth in SCR&#146;s turnover and profits primarily stems from brand and format roll-out to new sites and from sales and profits uplifts on conversion of existing sites to brands and formats.  Thereafter, site sales tend to be broadly flat (or marginally declining), with pubs and bars tending to show slight declines after year one, and restaurants and accommodation showing slight growth  after year one. Longer-term profit growth is also driven by scale efficiencies, through, for example, increasing staff productivity, supply chain gains and reducing central costs.</font></p>
<p><font face="serif" size="2"><i>History</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to 1989, the involvement of Six Continents (then known as Bass PLC) in pubs was a vertically integrated brewing and retailing company with regional operations covering both brewing  and pubs. In 1989, Six Continents was reorganized and, in the process, created a drinks-led retail business with a managed and leased estate of over 7,000 sites. As a result of the Beer Orders, which  restricted the number of pubs which brewers could tie to their products, Six Continents disposed of over 2,700 pubs and bars by November 1, 1992.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ten year since then, SCR has undergone a major transformation in its operations, with a number of significant acquisitions and disposals during this period and focused investment to  reposition its estate in terms of geography, sales mix and branding.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In realigning its estate portfolio, SCR retained the strongest sites from its former Bass PLC estate (approximately 1,100 sites from around 7,400). In 1995, SCR acquired the Harvester chain  from Forte plc. In 1997, SCR acquired the Browns chain of seven restaurants. Following the disposal of most of the Six Continents&#146; entertainment business in 1997 and 1998, Hollywood Bowl was  transferred to SCR. In 1998, SCR largely disposed of its leased pub business and acquired the Alex brand in Germany.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR also increased the size of its estate by acquiring 550 high-potential former Allied Domecq sites, out of approximately 3,500 sites, from Punch (ADR Joint Venture Company) Limited in  1999. In addition, during this ten year period, SCR acquired over 400 carefully selected new sites and new builds. In 2001, SCR sold to Nomura an estate consisting of 988 smaller unbranded pubs  with limited growth potential as managed pubs.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over the ten year period up to September 30, 2002, SCR has realized cash proceeds of &pound;1,600 million through disposals and has achieved a profit of &pound;158 million on disposals against book  value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further details of the activities of SCR, including geographic and brand segmentation, are set out below.</font></p>
<p><font face="serif" size="2"><b>Strategy</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s strategy is to capitalize and build on its position as the leader in the UK managed pub and pub-restaurant sector, to drive returns, cash generation and long-term earnings growth and to  create value for the Company&#146;s shareholders.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR intends to continue to implement its strategy by:</font></p>
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    <td><font face="serif" size="2">owning and developing licensed properties with high average weekly take (&#147;AWT&#148;), maintaining high levels of amenity, service and value;</font></td>
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    <td><font face="serif" size="2">evolving its retail brands and formats to gain market share and, as appropriate, creating new consumer offers;</font></td>
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    <td><font face="serif" size="2">delivering high returns on incremental capital invested, by developing prime sites into these brands and formats; and</font></td>
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    <td><font face="serif" size="2">generating additional cost, margin and revenue benefits from unit, brand and corporate scale, to consolidate its leading position in its market.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successful implementation of this operational strategy would enable management to drive longer-term earnings growth and freehold capital appreciation through the ongoing development of  SCR&#146;s estate and, by taking advantage of specific value-enhancing disposal opportunities, for instance due to the higher valuations being achieved through unlicensed use, to realize value for the  Company&#146;s shareholders through dividends and, where appropriate, returns of capital.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This strategy highlights the importance of SCR&#146;s high quality estate in enabling SCR to drive value from its portfolio of both branded and unbranded sites, without over-exposure to any  particular segment of the market.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further detail on strategy for SCR can be found  in this Item 4 within the descriptions of the &#147;Pubs &amp; Bars&#148; and &#147;Restaurants&#148; segments.</font></p>
<p><font face="serif" size="2"><i>Owning and developing licensed properties with high AWT</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s development strategy, focused on a carefully selected estate of high-take managed pubs, contrasts with the leased business model, which SCR believes is more appropriate for large  estates of smaller pubs, with high financial leverage.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The combination of high amenity, from initial investment and subsequent maintenance, and an emphasis on service and value drives customer appeal and sales, as shown by the high AWT per  site, approximately three times the industry average. Large-take sites benefit from enhanced employee productivity, contributing to strong cash returns.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s strategy is, where possible, to own the freehold of such sites, particularly in residential areas, to participate not only in the operational returns, but also in any uplift in the property value  created through investment and from the underlying appreciation associated with the value of the licence. The &pound;0.7 billion revaluation demonstrates the uplift generated in site values in the past (up  to the last revaluation in 1999).</font></p>
<p><font face="serif" size="2"><i>Creating and evolving sustainable consumer brands and formats</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company considers that continued success can be achieved in evolving and developing SCR&#146;s consumer brands and formats in the future through:</font></p>
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    <td><font face="serif" size="2">pro-actively anticipating consumer needs and changing trends to evolve existing brands and to continue to develop new brands and formats in order to maintain and enhance their appeal in light of changes in consumer tastes and groups;</font></td>
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    <td><font face="serif" size="2">driving excellence in operational delivery, such as clean sites, quick service, friendly staff, thereby enhancing the brand&#146;s &#145;appeal&#146; to the end consumer and building brand allegiance; and</font></td>
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    <td><font face="serif" size="2">motivating and empowering employees, for example, through incentive schemes and investing in technical and service training.</font></td>
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<p><font face="serif" size="2"><i>Developing prime sites into SCR&#146;s brands and formats</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that SCR has significant growth potential from converting an existing pipeline of some 500 sites (principally in residential areas) to its brands and unbranded formats  over the next three to four years, at an estimated average cost of &pound;250,000 per site going forward, in order to drive strong sales uplifts and high incremental returns on investment. In addition, the  Company intends that SCR will continue to add to its</font></p>
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<p><font face="serif" size="2">estate through selective new site acquisitions which have high unit sales potential and which meet SCR&#146;s rigorous site and investment  criteria.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s existing plans target the majority (around 80%) of its capital investment over the next three to four years on the residential pub and pub-restaurant segments, where the Company  believes that the balance of supply and demand is currently more attractive than the city/town center. This will be driven through further conversions of existing pubs to brands such as Ember Inns,  Vintage Inns, Toby Carvery, Sizzling Pub Co. and operating formats. SCR&#146;s management is also currently piloting various low-cost brand templates in order to allow for roll out to certain sites where  the full cost format may not be economically viable, so as to maximize asset productivity and maintain attractive returns.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s management will continue to evaluate sites very carefully, as certain sites are more appropriate to trade as branded sites; or can better achieve their maximum potential by trading as  individual (unbranded) sites, for example, the White Horse in Parsons Green, London and The Horseshoe Bar in Glasgow, or which may achieve greater value through alternative use or ownership.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR will also continue its program of disciplined maintenance investment on existing sites to sustain and, where appropriate, improve amenity levels in order to enhance customer appeal and  preserve the value of the assets.</font></p>
<p><font face="serif" size="2"><i>Generating scale benefits</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the largest managed pub, bar and restaurant operator in the United Kingdom (measured by sales and number of sites), SCR strives to maximize the benefits from economies of scale. The  development of high-take and high-return sites drives overall sales growth and provides margin benefit, through, in particular:</font></p>
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    <td><font face="serif" size="2">purchasing and supply chain initiatives &#150; SCR is progressively starting to gain access to both the product range and the trading terms of non-tied beer supply, as its minimum purchase obligations are reduced year on year ahead of the end of its principal beer supply contract resulting from the sale of Bass  Brewers. The 10% growth in food sales in 2002 has also led to further significant reductions in central purchasing and delivery costs;</font></td>
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    <td><font face="serif" size="2">enhanced employee productivity (both retail and corporate staff) &#150; SCR&#146;s investment in scheduling systems has enabled management to react rapidly to daily sales trends and its investment in training has equipped staff to do their jobs more efficiently. Management expects to build on the 4% increase in staff productivity achieved in 2002 (against an 11% increase in the UK national minimum wage) by continuing to vary employment costs in response to fluctuations in sales; and</font></td>
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    <td><font face="serif" size="2">central cost efficiencies &#150; SCR expects its ongoing program of overhead cost rationalization to produce further annualized savings of &pound;10 million as a result of actions already taken in fiscal 2003 to reduce headcount and associated direct and indirect costs reductions, and to rationalize other central expenditure, principally in support functions. By continually streamlining its processes, SCR has been able to reduce its headcount in support functions outside its sites by over 40% over the last five years.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of SCR&#146;s corporate scale and flexible infrastructure, the Company believes that SCR is well placed to take advantage of any further industry restructuring and consolidation  opportunities which would create shareholder value. However, the focus of SCR&#146;s strategy is on organic development.</font></p>
<p><font face="serif" size="2"><b>Developments</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the past three fiscal years, SCR has:</font></p>
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    <td><font face="serif" size="2">invested net capital expenditure of &pound;227 million, &pound;288 million and &pound;204 million in 2002, 2001 and 2000, respectively. Of this, &pound;55 million in 2002, &pound;102 million in 2001 and of &pound;34 million in 2000 have been spent on developing approximately 400 of the former Allied Domecq managed pubs into existing SCR brands and formats;</font></td>
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    <td><font face="serif" size="2">sold an estate of 988 smaller unbranded sites, with limited growth potential as managed pubs, to Nomura in 2001 for &pound;625 million; and</font></td>
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    <td><font face="serif" size="2">acquired 550 former Allied Domecq sites from Punch (ADR Joint Venture Company) Limited in 2000, for a consideration of &pound;179 million in cash (excluding costs) and the issue of 79 million new Six Continents shares (equivalent to a total consideration of &pound;945 million).</font></td>
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    <td><font face="serif" size="2">SCR&#146;s overall post-tax cash return on cash capital employed on the former Allied Domecq sites is 7.3%, including disruption from closure during conversion and the decline in profits of those sites yet to be developed. While this return is lower than the level anticipated at the time of the acquisition, it is still above SCR&#146;s expected weighted average cost of capital, as estimated by the Company. On those former Allied Domecq sites which have been converted and open for a full year, the post-tax return on cash capital employed is 8.6%.</font></td>
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<p><font face="serif" size="2"><b>Segmental Information</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SCR business is currently structured into two main business areas:</font></p>
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    <td><font face="serif" size="2">Pubs &amp; Bars Division, focusing on the drink and entertainment-led sites; and</font></td>
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    <td><font face="serif" size="2">Restaurants Division, focusing on the food and accommodation-led sites.</font></td>
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<p><font face="serif" size="2"><i>Geographic Segmentation</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Predominantly all of SCR&#146;s turnover and profit arises from operations in the United Kingdom.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is well diversified geographically within the United Kingdom and covers England, Wales, Scotland and Northern Ireland.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An approximate breakdown of SCR&#146;s UK sales as a percentage of total sales based on regional sales figures in fiscal 2002, is set out below*:</font></p>
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    <td colspan=2 align=center valign=bottom><div align="right"><font face="serif" size="1"><b>%</b></font></div></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Greater London</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">South East</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">West Midlands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Yorkshire and Humberside</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">North West</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Scotland</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">South West</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">East Midlands</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Northern</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Wales</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">East Anglia</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total UK</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Germany</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">TOTAL</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">In fiscal 2002, sales in Northern Ireland accounted for approximately 0.1% of total SCR sales.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, SCR was heavily concentrated in the main UK industrial areas of the North and Midlands. However, following a number of disposals and the acquisition of 550 former Allied  Domecq sites to reposition the estate in 1999, SCR believes that the Group now has a much more balanced presence across the United Kingdom.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The German business comprises the Alex brand and one All Bar One site, which opened in Cologne in fiscal 2002, and represents around 2% of SCR&#146;s sales for 2002. Alex sites are located in  many of the major cities in Germany.</font></p>
<p></p>
<p align=center><font face="serif" size="2">46</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p47"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><i>Activity Segmentation</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows turnover and operating profit by activity and percentage contribution of each activity for each of the three years ended September 30, 2002, 2001 and 2000.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>%</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Turnover </b>(1)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Pubs
      &amp; Bars</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">866</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">832</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Restaurants</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">564</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">520</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Inns
      and other (2)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">161</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2"><b>Total</b></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,475</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,557</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,674</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Operating Profit </b>(1)</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">61.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Pubs
      &amp; Bars</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Restaurants</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">Inns
      and other (2)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="serif" size="2"><b>Total</b></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;288</font></div></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;305</font></div></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;346</font></div></td>
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    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The results of overseas operations have been translated into sterling at weighted average rates of exchange of &pound;1=&#128;1.60 (2001 &pound;1=&#128;1.62, 2000 &pound;1=1.62).</font></td>
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    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Relates to turnover and income in respect of the pubs sold to Nomura in 2001.</font></td>
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<p><font face="serif" size="2"><b>The Pubs &amp; Bars Division</b></font></p>
<p><font face="serif" size="2"><i>Overview and Strategy</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Pubs &amp; Bars Division comprises SCR&#146;s drinking-out and entertainment-led sites. As at September&nbsp;30,&nbsp;2002, it had 595 branded sites and 841 unbranded sites and reported sales of &pound;866  million and operating profit of &pound;190 million in fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most important brands are Ember Inns, Sizzling Pub Co. and Scream in residential areas, O&#146;Neill&#146;s in city and town center locations and Hollywood Bowl (ten pin bowling in suburban  leisure parks). The Pubs &amp; Bars Division also includes the smaller brands of Arena (in residential areas) and Flares, Edward&#146;s and Goose (in&nbsp;city&nbsp;centers). The unbranded sites include individual  pubs and pubs operating to a consistent format (for&nbsp;example residential pubs for metropolitan professionals). Most of the remaining unbranded sites, located in residential areas and town centers,  form the pipeline for future conversion to brands or operating formats.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that the current balance of supply and demand in the residential pub sector is more attractive than city/town centers, and therefore SCR&#146;s investment focus in the next  three to four years is planned to be weighted towards conversions to the residential brands and formats (particularly Ember Inns, Sizzling Pub Co. and the metropolitan professional format) and on  new site acquisitions for the Hollywood Bowl&nbsp;brand.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In both residential and city center sites, the Company intends that SCR will continue to refresh and evolve its brands and formats so that they can continue to meet consumer needs (for  example, by improving the quality of service, food and drink in its pubs and bars, offering a wider range of soft drinks, wine, premium packaged spirits and lagers and by responding to the trend  towards later hours drinking).</font></p>
<p></p>
<p align=center><font face="serif" size="2">47</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the number of SCR&#146;s pubs and bars at the end of each of the last three fiscal years:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>As at September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Pubs &amp; Bars</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Ember Inns</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sizzling Pub Co.</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">O&#146;Neill&#146;s (1)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Scream</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">71</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Arena</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goose</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Edward&#146;s</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hollywood Bowl</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Flares</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other branded</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Branded</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">595</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">443</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">285</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unbranded (managed)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">971</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,084</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total managed sites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,414</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,414</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,369</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Supported Agreements to Trade</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Leased sites</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Total</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,436</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,428</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,383</font></td>
    <td valign=bottom><font face="serif" size="2"> (2)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">Includes one site operating under a franchise agreement in 2002.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Excludes 988 sites sold to Nomura, SCR&#146;s Jersey operations sold in July 2001 and other individual site disposals.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Pubs &amp; Bars Brands</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s key brands in the Pubs &amp; Bars Division are:</font></p>
<p><font face="serif" size="2"><i>Residential</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Ember Inns</b> &#150; (Launched: 1999) Ember Inns are local pubs retaining their individual name, presented in a contemporary style and offering high quality drink, food and service. They are  normally in prominent locations, with extensive car parks, in residential areas, and target a wide range of adults. The brand was awarded The Publican&#146;s 2002 Retail Brand of the Year Prize for being  the best new brand concept and the 2003 Retailers&#146; Retailer of the Year award for the best newcomer.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Sizzling Pub Co.</b> &#150; (Launched: 2001) Sizzling Pubs are also generally based in residential areas and aim to offer a great local drinking pub serving &#147;value for money&#148; food on hot (sizzling)  skillets. Sizzling Pubs target those aged 25 and above and also cater for families.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Scream</b> &#150; (Launched: 1995) Scream is the leading student pub brand in the United Kingdom and is located on or near university campuses and lodgings. It offers students significant savings  through a student discount card, the Yellow Card. Its target audience is students, typically aged between 18 and 25 years. It is continually evolving in terms of promotional activity, decor and product  mix to reflect ever-changing student trends.</font></p>
<p><font face="serif" size="2"><i>City/Town Center</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>O&#146;Neill&#146;s</b> &#150; (Launched: 1994) The Company believes that O&#146;Neill&#146;s is the largest Irish bar brand in the world and aims to offer the lively and fun atmosphere of the &#147;Craic&#148;. It is located in  city/town centers and also on suburban high streets (main streets). O&#146;Neill&#146;s is targeted towards 18-35 year olds. It offers table service and, in larger sites, entertainment through music rooms. SCR is  piloting branded franchises as a means to achieve further growth and enhanced returns on its investment.</font></p>
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<p align=center><font face="serif" size="2">48</font></p>
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<p><font face="serif" size="2"><i>Bowling</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Hollywood Bowl</b> &#150; (Launched: 1992) Hollywood Bowl offers ten pin bowling, food, drink and amusement games facilities in a family-friendly environment. Hollywood Bowl&#146;s target  audience consists of families, young people (aged 14-35), corporate groups and league bowling clubs. Most are located in retail/leisure parks next to multiplex cinemas.</font></p>
<p><font face="serif" size="2"><i>Other brands</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to SCR&#146;s key brands set out above, other brands in the Pubs &amp; Bars Division include:</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Arena</b> &#150; (Launched: 1999) These pubs are generally located in residential areas and aim to offer an alternative to the &#145;big night out&#146; away from the city center with entertainment such as live  bands and large screens for sporting occasions.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Goose</b> &#150; (Launched: 1996) Goose sites are located in city centers and are traditional pubs offering food and drink at extremely competitive prices.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Edward&#146;s</b> &#150; (Launched: 1996) Edward&#146;s are generally spacious bars which aim to cater to lunchtime diners and provide DJ-led entertainment in the evening with a target audience of style  conscious 18-25 year olds.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Flares</b> &#150;
  (Launched: 1997) Flares is a late night dancing and drinking venue with DJs
  playing 1970&#146;s retro music.</font></p>
<p><font face="serif" size="2"><b>Unbranded Pubs and Bars</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are 841 unbranded sites, which trade as:</font></p>
<p><font face="serif" size="2"><i>Operating Formats</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are currently two types of operating formats:</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Metropolitan Professionals&#148; are individual residential pubs that have been renovated. They are predominantly located in London and target young professionals. They do not display a brand  name; however they have some similar characteristics (e.g. in the menu and wine list); and</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nicholsons are central London pubs located in a &#147;character&#148; building. The pub name is retained with some additional Nicholsons&#146; signage. Nicholsons primarily caters for city workers and  tourists, offering traditional pub food and drink.</font></p>
<p><font face="serif" size="2"><i>Individual Pubs and Bars</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These unbranded pubs include individual, &#147;classic pubs&#148; distinct in their own right (i.e. due to architecture, history or being close to a tourist attraction), individual nightclubs, gay pubs and  other sites, which are well known locally due to their location or popularity. There are currently no plans to convert these sites, as the Company considers that it can achieve their maximum potential  by remaining unbranded sites. In addition, there are other unbranded pubs and bars, which are being evaluated by management and which include sites currently identified for future conversion to  SCR&#146;s brands or formats.</font></p>
<p><font face="serif" size="2"><i>Supported Agreements to Trade (&#147;SATs&#148;)</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is also piloting a system of SATs, whereby SCR enters into a support agreement with a third party under which, for an annual fee, SCR provides goods and services (such as IT systems,  menu support, telephone helpdesk and the ability to participate in bulk purchasing carried on by the rest of its estate). SCR retains ownership of the property and leases it for a commercial rent. As at  September 30, 2002, there were eight SATs in operation.</font></p>
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<p><font face="serif" size="2"><i>Leased Sites</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR continues to lease to third parties a small number of pubs, which it decided to retain on the disposal of its leased estate. These pubs will be converted to managed pubs once the lease  expires.</font></p>
<p><font face="serif" size="2"><b>The Restaurants Division</b></font></p>
<p><font face="serif" size="2"><i>Overview and Strategy</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Restaurants Division comprises the eating-out and accommodation-led sites and includes 440 branded pub-restaurants such as Vintage Inns, Harvester and Toby Carvery in residential  areas; 97 residential unbranded pub-restaurants; and 68 brasserie restaurants in UK city centers under the brands of All Bar One and Browns. There are 41 sites in Germany, all but one of which are  under the Alex brand. Express by Holiday Inn and Innkeeper&#146;s  Lodge offer mid-scale/budget accommodation and are generally located adjacent to pub-restaurants. Management and financial  reporting are integrated with that pub-restaurant.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, the Restaurants Division reported sales of &pound;609 million and operating profit of &pound;98 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s focus of investment in the next two to three years is planned to be weighted towards new site acquisitions in the pub-restaurant market, particularly sites that are suitable for conversion  to Vintage Inns and Toby Carvery, together with associated accommodation, where appropriate. SCR has been reviewing a number of smaller Harvester sites for conversion to formats such as  Sizzling Pub Co. and Ember Inns, which are less labor intensive, in light of the rise in employment costs driven by the UK national minimum wage. In addition, the Company intends that SCR will  continuously evolve its restaurant offers to anticipate changing consumer trends (for example, the growth of informal dining and, as consumers become more discerning, a higher quality and wider  variety of food and drink, particularly wine).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below shows the number of SCR&#146;s restaurants at the end of each of the last three fiscal years:</font></p>
<table width="100%" border="0" align="centre" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>As at September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Restaurants </b>(1)</font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Vintage Inns</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">179</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">151</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Harvester</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Toby Carvery</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">All Bar One</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Innkeeper&#146;s Fayre</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Express by Holiday Inn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Browns</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other branded</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">71</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Alex (Germany)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td valign=bottom><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Branded</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">572</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">524</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">507</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unbranded</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">115</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">128</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Total</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">669</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">639</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">635</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="150" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">The table does not include Innkeeper&#146;s Lodge (accommodation) which are located adjacent to pub-restaurant sites (64 sites as at September 30, 2002).</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Includes one All Bar One in Cologne but does not include six franchised outlets of Alex.</font></td>
  </tr>
  <tr>
    <td></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Restaurant Brands</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s major UK restaurant brands are:</font></p>
<p><font face="serif" size="2"><i>Residential</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Vintage Inns</b> &#150; (Launched: 1994) These are traditional food-led country pubs serving freshly cooked food and a range of high quality wines at reasonable prices. They display the individual  pub name with subtle branding on menus and signage. Vintage Inns are targeted at a wide range of age groups, particularly those over 40.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">50</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Harvester</b> &#150; (Established: 1978; Acquired: 1995) Harvesters are pub-restaurants in suburban roadside locations, principally targeting families. They offer a &#147;country&#148; setting and are well  known for Spit Roast Chicken, Smoked Ribs and Salad Cart. The offer is currently being evolved to reflect the changes in consumer demand away from the traditional service style offer to a more  informal offer highlighting the freshly prepared food made from seasonal ingredients.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Toby Carvery</b> &#150; (Established: 1973; Relaunched: 1998) Toby Carvery is the leading brand in the UK carvery sector (in terms of number of sites and sales) and aims to offer a &#147;good value&#148;  varied menu of roasts and other traditional dishes. The sites are generally in suburban roadside locations and are aimed at a wide range of age groups and Sunday lunch diners.</font></p>
<p><font face="serif" size="2"><i>City/Town Center</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>All Bar One</b> &#150; (Launched: 1994) Classic cosmopolitan bars serving food and drink in a clean, bright contemporary environment, positioned in city center locations (primarily in London).  Recently, SCR has enhanced the snack and food offers available, introduced table service and extended the range of good quality wines on sale. All Bar One&#146;s target audience consists of metropolitan  professionals (especially women). The brand won the Retailers&#146; Retailer of the Year award for best concept in 1999 and a trial site has also been opened in Cologne,&nbsp;Germany.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Browns</b> &#150; (Established: 1973; Acquired 1997) SCR acquired the Browns chain of seven restaurants in 1997. Browns restaurants are located in city centers around the United Kingdom and aim  to offer casual, elegant, brasserie dining all day, often in landmark architectural buildings. The target audience consists of metropolitan professionals and tourists.</font></p>
<p><font face="serif" size="2"><i>Other brands</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to SCR&#146;s major UK brands set out above, the Restaurant Division also includes Innkeeper&#146;s Fayre, a family dining pub-restaurant with children&#146;s play dens.</font></p>
<p><font face="serif" size="2"><i>Accommodation</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR has approximately 100 sites which offer accommodation above or adjacent to the pub-restaurant or pub with over 3,000 rooms and generating &pound;35 million of accommodation revenue in  2002, as well as driving additional food and beverage trade in the associated pub-restaurant. In 87 of these sites, the accommodation offer is branded as either Express by Holiday Inn or Innkeeper&#146;s  Lodge.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Express by Holiday Inn</b> &#150; (First franchise operated: 1996) These are modern, purpose built mid-scale limited service hotels. SCR is the major Express by Holiday Inn franchisee in the United  Kingdom.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Innkeeper&#146;s Lodge</b> &#150; (Launched: 2001) Innkeeper&#146;s Lodges are typically smaller than Express by Holiday Inn sites and offer informal value rooms above or adjacent to pub-restaurants such  as Toby Carvery and Vintage Inns.</font></p>
<p><font face="serif" size="2"><i>Unbranded Pub-Restaurants</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are currently 97 unbranded pub-restaurants, all of which are in residential areas. These include individual pub-restaurants and pipeline sites for conversion to SCR&#146;s brands.</font></p>
<p><font face="serif" size="2"><b>Germany</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR acquired the Alex business in 1998 (as an initial trial in transferring SCR&#146;s branded chain licensed retail expertise to Germany, the market most similar to the United Kingdom in terms of  the drinking out sector) and has since expanded it to 40 managed sites. There are also six franchised sites. In addition, there is now one All Bar One site in Cologne. All the operations in Germany are  conducted through SCR&#146;s German subsidiary, Six Continents Retail Germany GmbH. Performance and hence returns have been lower than expected, primarily as a result of poor economic  conditions in Germany, exacerbated by fixed property costs. SCR will not consider</font></p>
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<p><font face="serif" size="2">further expansion of Alex or All Bar One in Germany, unless and until German economic conditions improve; however, the Company  believes that the SCR business should benefit from any future upturn in Germany.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Alex</b> &#150; (Acquired: 1998) Alex is the leading branded licensed retail chain in Germany, in terms of sales and number of sites. The city center bars and brasseries offer all day menus and  drinking. Alex sites are aimed towards shoppers and office workers during the day and 18-35 years olds in the evening.</font></p>
<p><font face="serif" size="2"><b>Marketing</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR operates a portfolio of brands and formats, each of which has a distinct customer, service offer, product range and price point. The major marketing activities to drive sales therefore  focus on:</font></p>
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    <td><font face="serif" size="2">maintaining the relevance of brands and formats
      through the evolution of the range of drinks, menus, pricing activity, design
      and service innovation;</font></td>
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    <td><font face="serif" size="2">promoting brands and formats through national
      and local advertising (for example, Hollywood Bowl by radio), promotions
      (for example, wine festivals at Ember Inns) and public relations;</font></td>
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    <td><font face="serif" size="2">developing new formats to serve new audiences
      and demand patterns. SCR applies a rigorous brand management structure to
      its business, allied to an investment in consumer insight; and</font></td>
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    <td><font face="serif" size="2">developing controlled specific promotional
      and pricing initiatives targeting the most price-sensitive brands, products
      and occasions which are expected to result in SCR re-investing around 1%
      of its gross margin in the second half of fiscal 2003.</font></td>
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<p><font face="serif" size="2"><b>Key Competitors</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s pubs and restaurants compete in a market that has been undergoing significant structural changes in recent years. Some brewers have exited from brewing activities altogether and sold  off their leased and smaller managed pubs to focus on high margin branded assets or other interests, allowing new pub retailing companies to enter the market. In addition, financially leveraged  companies have become more common in pub ownership; around 30% of pubs are now owned by financial institutions or highly leveraged companies, compared with only 2% in 1997.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following this industry restructuring and consolidation, SCR&#146;s key competitors (in the eating out and drinking out market) in the United Kingdom now include:</font></p>
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    <td><font face="serif" size="2">operators of managed sites, including Whitbread PLC (with brands such as Brewers Fayre, Beefeater and Travel Inn) Scottish &amp; Newcastle plc (with brands such as Chef &amp; Brewer and Premier Lodge), SFI Group plc, Spirit Group Limited, Wolverhampton &amp; Dudley Breweries plc, Greene King plc, Laurel Pub Holdings plc, Luminar plc (which includes 163 nightclub sites), JD Weatherspoon plc, Regent Inns plc and Yates Brothers plc;</font></td>
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    <td><font face="serif" size="2">lessees/tenants of leased pub estates, including
      those owned by Enterprise Inns plc, Coinmajor Limited (trading as Unique
      and Voyager), Punch Taverns PLC and Pubmistress Limited;</font></td>
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    <td><font face="serif" size="2">smaller multiple and single pub operators,
      and independently owned freehouses, clubs, nightclubs, wine bars, restaurants,
      entertainment centers and other providers of leisure facilities; and</font></td>
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    <td><font face="serif" size="2">independently operated, single or multiple
      owned restaurants as well as branded restaurant chains (e.g. Pizza Express,
      ASK and City Centre).</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s pubs, bars and restaurants also compete with home-based entertainment and the trend towards drinking at home.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at September 30, 2002, the Group accounted for only 3% of the UK managed pub/bar industry by number of sites and it had an estimated market share of over 9% by sales.</font></p>
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<p><font face="serif" size="2"><b>Key Supply Partners</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite the relatively low number of suppliers, no one food or drink or leisure supplier to SCR represents more than 15% of the total value of goods supplied.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is contractually bound to use certain suppliers: as a consequence of the disposal of Six Continents&#146; former brewing business to Interbrew UK Holdings Limited (and Interbrew&#146;s  subsequent part disposal to Coors), SCR entered into a beer supply agreement in 2000, to purchase a minimum amount of certain specified products for a term of five years from that date. Coors&#146;  brands now represent approximately 37% of SCR&#146;s alcoholic drink purchases. In addition, as part of the acquisition of the 550 former Allied Domecq sites, SCR is contractually bound to purchase a  fixed minimum volume of Carlsberg-Tetley products until December 12, 2007, which in fiscal 2002 represented 8% of its alcoholic drink purchases.</font></p>
<p><font face="serif" size="2"><b>Regulatory Environment</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale of alcohol in the United Kingdom is a highly regulated industry governed by the licensing system. Licensing covers most premises where alcohol is sold, such as pubs, off-licenses,  restaurants and supermarkets. This section refers to regulations in the United Kingdom and references herein to Government or Parliament are references to the Government or Parliament of the  United Kingdom.</font></p>
<p><font face="serif" size="2"><i>Legislation &#150; Licensing Reform</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The retail sale of alcohol in the United Kingdom is currently governed by a licensing system set out in the Licensing Act 1964. Pubs &#150; known as &#147;on-trade&#148; business &#150; generally require a full  on-license in order to sell alcohol on the premises. The license is generally held by the manager or landlord. That person has to satisfy the licensing authorities that, amongst other things, he/she is a  fit and proper individual to hold such a license.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other types of license which may be required in the &#147;on-trade&#148; include gaming machine permits in respect of installing and operating AWP machines, &#147;supper hours&#148; certificates to extend  the permitted hours for selling alcohol by one hour (where the sale of alcohol is ancillary to a substantial meal) and entertainments licenses for dancing and certain live performances.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On-licenses must currently be renewed every three years and may be revoked at any time for serious cause, including violation by the manager or landlord or his/her employees of any law or  regulation, such as those regulating the minimum age of patrons or employees, advertising and inventory control.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 15, 2002, the Government presented a new licensing bill to Parliament. The key changes being proposed are:</font></p>
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    <td><font face="serif" size="2">the transfer of the management and the licensing system from local magistrates courts to local authorities, i.e. from the legal system to the local government system. However, license holders will retain the right of appeal to the magistrates court. In theory, this change should have little impact on the basic structure of pub licensing, but in practice this change means that any new pub, as well as all existing pubs, will have to submit details of its operating plan and will now face greater scrutiny from police and local residents;</font></td>
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    <td><font face="serif" size="2">greater flexibility with respect to pub opening
      hours and it is likely that the current stringent limits on&nbsp;late-night
      trading will be relaxed. While longer opening hours will undoubtedly have
      cost implications, the Company believes that this change may benefit pubs
      where there is a demand for later hours drinking; and</font></td>
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    <td><font face="serif" size="2">a dual system of longer-term premises licenses
      and personal licenses.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The bill proposing these changes has yet to pass through both Houses of Parliament and much of the detail, including the fee levels for premises or personal licenses, has still to be drafted.  Furthermore, national guidance from the Secretary of State will determine much of the practical implication of the new legislation. Royal Assent is expected in July 2003, with expected  implementation by Spring 2004 to coincide with the existing triennial renewal period.</font></p>
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<p><font face="serif" size="2"><i>Gaming Regulations</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, AWPs represented around 3% of SCR&#146;s turnover. The Gaming Act 1968, along with subsequent legislation, is the key source of current gaming and amusement machine legislation  which impacts on SCR&#146;s business.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under this legislation, liquor licensed premises are allowed to deploy AWPs with the permission of local licensing magistrates. The current maximum level of stake and prize for a single  game is 30 pence and &pound;25, respectively. Proposed changes to the current gambling legislation are under consideration by the Government which include making play by under 18 year olds illegal  (although SCR already abides by a voluntary code to this effect) and passing the control of the number of AWPs from licensing magistrates to local authorities. The other areas of change relate to  categories of machine permitted in casinos, licensed betting offices, bingo amusement arcades, family entertainment centers and motorway service stations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the proposed legislation, existing licensed premises would be allowed to retain their current number of AWPs. New licensed premises are likely to be entitled to two AWPs (currently  pubs do not have an automatic right to any AWPs) with discretion for local authorities to increase such entitlement, based on national guidance that is currently being considered by the Government  in consultation with the pub industry. In addition, following lobbying by the pub and gambling industries and irrespective of any new overarching gambling legislation, reviews aimed at increasing  the maximum levels of stakes and prizes will continue. The industry is seeking a maximum level of stake and prize for a single game of 50 pence and &pound;50, respectively, in January 2005. Furthermore,  payment method deregulation is expected within the next 18 months that will allow AWPs to accept notes for play; at present only coins or tokens can be used.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that the new legislation may result in increased competition in gaming but also increase the appeal of gaming in pubs (through payment deregulation and the number of  machines on licensed promises). The Company believes that, on balance, the ultimate effect will probably be at least neutral on SCR&#146;s business but will keep the proposed gaming legislation under  close review.</font></p>
<p><font face="serif" size="2"><i>Drink Driving</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The European Commission has recommended that all countries in the EU adopt the same drink and drive limit of 0.5mg/ml blood alcohol concentration. A lower level of 0.2mg/ml would be  adopted for younger and inexperienced drivers. It is not known when the EU directive will come into force. The current legal limit in the United Kingdom is 0.8mg/ml and, as car drivers and  passengers account for 40% of pub visits, this legislation could affect trading in SCR&#146;s rural and suburban pub and restaurant sites.</font></p>
<p><font face="serif" size="2"><i>Employment Legislation</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the United Kingdom, the Working Time Regulations (the &#147;Regulations&#148;) came into effect on October 1, 1998 and control the hours employees are legally allowed to work. Under the  legislation, workers may only be required to work a 48 hour week (although they can choose to opt out and work longer if they wish). The Regulations also lay down rights and protection in areas  such as minimum rest time, days off and paid leave. Many of SCR&#146;s employees are covered by the Regulations, and most of its licensed house managers have signed voluntary opt outs which allow  them to work longer than the 48 hour work week. The retention of the opt out and guidance as to who is covered by the Regulations is expected to be under review in 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, under the Equal Treatment Directive, part-time employees can claim the same rights as full-time employees.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the United Kingdom there is a national minimum wage (&#147;NMW&#148;) under the National Minimum Wage Act. The NMW was &pound;3.60 per hour in 1999, &pound;3.70 per hour in 2000, &pound;4.10 per hour  in 2001 and &pound;4.20 per hour as of October 1, 2002. This particularly impacts businesses in the hospitality and retailing sectors. Compliance with the National Minimum Wage Act is being monitored  by the Low Pay Commission, an independent statutory body established by the UK Government. Staff costs have increased in both pubs and restaurants following the introduction of the NMW.  Historically, the Group has managed to partly offset increases in NMW costs against increased labor productivity (for example, through training, larger sites and efficient staff rostering). SCR&#146;s sales  per staff hour have increased by some 14% during the past four years. See &#147;Item 3. Key Information &#150; Risk&nbsp;Factors&#148; for further information on 
regulatory employment costs.</font></p>
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<p><font face="serif" size="2"><i>Food Regulation Standards</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations covering food hygiene have raised standards in the food retailing industry. The regulations have had their greatest effect on smaller, independent restaurant outlets that had to  incur additional costs to comply with the new standards. The Company believes that all of SCR&#146;s sites should comply with current Food Regulation Standards as a result of rigorous training, detailed  manuals and regular independent environmental health audits.</font></p>
<p><font face="serif" size="2"><i>EC Noise Directive</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Physical Agents Directive 2001 (the &#147;Directive&#148;) is currently under discussion in the retail industry, relating to the regulation of noise in the workplace; the current UK noise limit for  workplaces is 90 decibels but if the directive were to come into effect that limit would be reduced to 85 decibels, representing a significant change. SCR&#146;s sites, especially those which play loud  music and have other live entertainment, could be affected by this proposed change in the law. The European Parliament has recently agreed that the industry in the United Kingdom should agree a  code of conduct as to how the Directive is to be implemented in the United Kingdom. It is expected that the UK Government will need to put regulations in place in relation to this proposed directive  within the next five years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the meantime, the senior management team will put in place a proactive policy on noise levels for SCR, in the light of the proposed Directive.</font></p>
<p><font face="serif" size="2"><i>Legislation Relating to Smoking</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There has been a recent government consultation exercise on smoking in public places which may lead to the introduction of regulations controlling smoking in public. Any such regulations  may have the effect of discouraging smokers from using pubs and restaurants which may have an adverse effect on SCR&#146;s operations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is currently a charter on smoking in public places such as restaurants and pubs, which has been agreed between the Department of Health and leading hospitality industry groups. This  charter, though not law, is supported by the Government who asked the licensed leisure industry to ensure that 50% of licensed premises were compliant with it by December 2002, and that 35% of  those have either &#145;no smoking&#146; areas or adequate mechanical ventilation.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR is in compliance with the charter. As part of its support for the charter, SCR is taking steps to ensure that:</font></p>
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      charter compliance;</font></td>
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    <td><font face="serif" size="2">all new sites will be signed up to the charter;
      and</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR has also recently introduced in part of its estate a &#145;no smoking&#146; rule at the bar, in order to further improve the environment for its employees and customers. This is currently being rolled  out at Ember, Vintage Inns and Harvester sites and the intention is to roll out this policy to the rest of SCR&#146;s estate.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p55a"></a>OTHER ACTIVITIES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The main other Group activity is property development.</font></p>
<p><font face="serif" size="2"><b>Standard Commercial Property Developments Limited</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCPD develops and sells land and properties in the United Kingdom on a limited scale. It&nbsp;has an existing development stock with a book value of around &pound;20 million, including ex-brewery  land, depots and former leisure retail sites. In addition, SCPD aims to pursue attractive opportunities that may arise to redevelop a small number of the Group&#146;s sites.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, SCPD generated operating profits of &pound;1 million on revenues of &pound;6 million.</font></p>
<p></p>
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<p align=center><font face="serif" size="2"><b>TRADEMARKS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group companies own a substantial number of service brands and product brands and the Group believes that its significant trademarks are protected in all material respects in the markets in  which it currently operates.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p56a"></a>ORGANIZATIONAL
  STRUCTURE</b></font></p>
<p><font face="serif" size="2"><b>Principal operating subsidiary undertakings</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents PLC is the beneficial owner of all (unless specified) of the equity share capital, either itself or through subsidiary undertakings, of the following companies:</font></p>
<p><font face="serif" size="2"><b>Corporate activities</b></font></p>
<p><font face="serif" size="2">Asia Pacific Holdings Limited (note a)<br>  SixCo North America Inc. (incorporated and operates in the United States)<br>  SC Luxembourg Investments SARL (incorporated and operates in Luxembourg)<br>  Six Continents Hotels International Limited (note a)<br>  Six Continents Holdings Limited (note a)<br>  Six Continents Overseas Holdings Limited (note a)<br>  Six Continents International Holdings BV (incorporated and operates in the Netherlands)<br>  Six Continents Investments Limited (notes a and b)</font></p>
<p><font face="serif" size="2"><b>Hotels</b></font></p>
<p><font face="serif" size="2">BHR Holdings BV (incorporated and operates in the Netherlands)<br>  BHR Luxembourg SARL (incorporated and operates in Luxembourg)<br>  Six Continents Hotels Limited (formerly Posthouse Hotels Limited)<br>  Six Continents Hotels Operating Corporation (incorporated and operates principally in the United States)<br>  Six Continents Hotels (UK) Limited<br>  Holiday Inn Limited (note a)</font></p>
<p><font face="serif" size="2"><b>Soft Drinks</b></font></p>
<p><font face="serif" size="2">Britannia Soft Drinks Limited (50% Six Continents Investments Limited, 25% Whitbread PLC, 25% Allied Domecq PLC) (note c)<br>  Britvic Soft Drinks Limited (90% Britannia Soft Drinks Limited, 10% PepsiCo Holdings Limited)<br>  Robinsons Soft Drinks Limited (100% Britannia Soft Drinks Limited)</font></p>
<p><font face="serif" size="2"><b>Retail</b></font></p>
<p><font face="serif" size="2">Six Continents Retail Limited (note e)<br>  Six Continents Retail Germany GmbH (incorporated and operates in Germany) (note e)</font></p>
<p><font face="serif" size="2"><b>Other activities</b></font></p>
<p><font face="serif" size="2">Standard Commercial Property Developments Limited (notes a and e)<br>  White Shield Insurance Company Limited (incorporated and operates in Gibraltar) (note a)</font></p>
<p><font face="serif" size="2"><hr noshade size="1" align="left" width="100"></font><p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">a</font></td>
    <td><font face="serif" size="2">Shares held directly by Six Continents PLC.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">b</font></td>
    <td><font face="serif" size="2">Six Continents PLC owns all the 5% and 7%
      Cumulative Preference shares of Six Continents Investments Limited.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">c</font></td>
    <td><font face="serif" size="2">The Group holds a majority of voting rights
      (50% plus one ordinary share) in, and exercises dominant influence over,
      Britannia Soft Drinks Limited, which is, accordingly, treated as a subsidiary
      undertaking.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">d</font></td>
    <td><font face="serif" size="2">Unless stated otherwise, companies are incorporated
      in Great Britain, registered in England and Wales and operate principally
      within the United Kingdom.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">e</font></td>
    <td><font face="serif" size="2">Subsidiary undertakings to be transferred
      to M and B on Separation.</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">56</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p57"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>PROPERTY, PLANT AND EQUIPMENT</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group companies own and lease property primarily in the United Kingdom. The table below analyzes the net book value of land and buildings at September 30, 2002 by division and  geographic segment. Approximately 80% of the properties by value were directly owned, with 16% held under leases having a term of 50 years or longer.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td align="center">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Net
        book value of land and buildings<br>
         as at September 30, 2002</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>United Kingdom</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Rest of<br> Europe,<br> the Middle<br> East<br> and Africa</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>United States</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Rest of World</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><hr noshade size="1"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>&nbsp; </td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Six Continents Hotels</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">1,102</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">818</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">642</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">373</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">2,935</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">65</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">65</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Six Continents Retail</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">2,732</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">17</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">2,749</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">10</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#ffffff"><font face="serif" size="2">10</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff">&nbsp; </td>
    <td bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff">&nbsp; </td>
    <td bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff">&nbsp; </td>
    <td bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff">&nbsp; </td>
    <td bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff">&nbsp; </td>
    <td bgcolor="#ffffff">
<hr noshade size="1"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#eeeeee">
<div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">3,909</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">835</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">642</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">373</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom bgcolor="#eeeeee"><font face="serif" size="2">5,759</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp; </font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp; </font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp; </font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp; </font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp; </font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">
<hr noshade size="2"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group properties include hotels, soft drinks production facilities, and associated distribution centers for Group products, managed pubs, restaurants and leisure venues.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents believes that no single property is material to its operations or financial position.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with UK GAAP, properties are recorded in the balance sheet at cost or valuation less depreciation. Financial Reporting Standard 15 &#150; Tangible Fixed Assets was implemented  by Six Continents with effect from October 1, 1999. The transitional rules of the Standard have been followed permitting the carrying values of properties as at October 1, 1999 to be retained. The  most recent valuation was undertaken in the year ended September 30, 1999 and covered all properties then owned by the Group, other than hotels acquired or constructed in that year and leasehold  properties having an unexpired term of 50 years or less. The valuations were undertaken by external valuers and the basis of valuation was predominantly existing use value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment has been written down in fiscal 2002 by &pound;113 million following an impairment review of the hotel estate. The impairment has been measured by reference to the  value in use of income-generating units, using discount rates ranging between 10.0% and 11.5% depending on the geographical location of the income-generating unit.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH is undertaking a major refurbishment program at some of its leading InterContinental properties. See &#147;Item 4. Information on the Company &#150; Hotels &#150; Six Continents Hotels &#150; Developments&#148;.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p57a"></a>ENVIRONMENT</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents is committed to a policy that all its operating companies have a responsibility to act in a way that respects the environment in which they operate. The Group&#146;s hotels operate in  nearly 100 countries and territories and its strong presence in the US and EU markets mean that it is affected by and is familiar with highly developed environmental laws and controls. Six Continents  takes regular account of environmental matters and seeks to embed good practice into its business strategies and operations. Six Continents benchmarks externally with initiatives such as the  FTSE4Good and Dow Jones World Sustainability Indices, so that it can measure achievements, identify shortcomings and take appropriate corrective action. The Dow Jones World Index lists Six  Continents as &#147;Leader in Sustainability&#148; for the restaurant and lodging sector.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group companies incur expenditure on technical advice, services and equipment in addressing the environmental laws and regulations enacted in the countries in which they operate. In fiscal  2002, such expenditure was not material in the context of their financial results. Group companies are developing the use of environmental audits, benchmarking, targets and formal reporting streams  to ensure policy compliance and are constantly developing improved energy management policies aimed at reducing variable costs for energy and waste management bills.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">57</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is not possible to forecast the overall Group expenditure to comply with environmental laws and regulations; this reflects the difficulty in assessing the risk of environmental accidents and  the changing nature of laws and regulations. Six Continents expects, however, in the light of its control procedures backed by insurance cover currently available, that it should be in a position to  restrict such expenditure so that, although it may be considerable, it will be unlikely to have a material adverse effect on the Group&#146;s financial position or results of operations.</font></p>
<p><font face="serif" size="2"><b><a name="p58a"></a>ITEM 5.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>OPERATING
  AND FINANCIAL REVIEW AND PROSPECTS</b></font></p>
<p align=center><font face="serif" size="2"><b><a name="p58b"></a>CRITICAL ACCOUNTING
  POLICIES UNDER UK GAAP AND US GAAP</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements requires the use of estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities  at the date of the financial statements and the reported amounts of revenues and expenditure of the period. Actual results could differ from those estimates.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes the following critical accounting policies require significant judgment and/or the greatest use of estimates.</font></p>
<p><font face="serif" size="2"><b>Tangible and Intangible Assets</b></font></p>
<p><font face="serif" size="2"><b><i>(i)</i></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>Goodwill</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchased goodwill is capitalized as an intangible asset and amortized over its anticipated life.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to September 30, 1998, under UK GAAP, goodwill arising on acquisitions was eliminated against shareholders&#146; funds. On disposal of a business, any goodwill relating to that business  and previously eliminated against shareholders&#146; funds, is taken into account in determining the gain or loss on disposal.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current US GAAP, all goodwill is amortized over its anticipated life. From October 1, 2002 the Company will adopt Statement of Financial Standards No. 142 &#147;Goodwill and Other  Intangible Assets&#148; under which amortization of purchased goodwill is no longer mandatory. On adoption of the new accounting standard, goodwill will be reviewed for impairment, and then on a  periodic basis thereafter.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the 2002 financial statements there is a UK GAAP to US GAAP reconciling amount of &pound;101 million which relates to the incremental charge under US GAAP of amortizing all of the  Group&#146;s intangible assets. The size of this reconciling amount illustrates the financial significance of accounting policies in this area.</font></p>
<p><font face="serif" size="2"><b><i>(ii)</i></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>Revaluation of tangible fixed assets</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible fixed assets are stated at cost or valuation less depreciation. The most recent valuation of properties was undertaken in 1999 and covered all properties owned by the Group other than  hotels acquired or constructed in the year and leasehold properties having an unexpired term of 50 years or less. The valuation was undertaken by external Chartered Surveyors and internationally  recognized valuers (Jones Lang LaSalle Hotels in respect of hotels and Chesterton plc in respect of pubs and other properties) in accordance with the Appraisal and Valuation Manual of the Royal  Institution of Chartered Surveyors. The basis of valuation was predominantly existing use value and, in the case of pubs and hotels, had regard to trading potential.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use of independent valuers and adherence to industry-wide valuation manuals eliminates company bias from the valuations but property values are affected by external factors such as the  economy, terrorism threat and natural disasters as well as property valuation cycles. It is common for property prices to change (up or down) in the years following a valuation.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the end of fiscal 2002, the Group&#146;s fixed assets had been increased by &pound;1,020 million as a result of revaluations.</font></p>
<p><font face="serif" size="2"><b><i>(iii)</i></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>Impairment of fixed assets</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under UK GAAP and US GAAP the carrying value of both tangible and intangible fixed assets is assessed for indicators of impairment.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">58</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In circumstances where indicators of impairment exist, the carrying value of an income-generating unit (&#147;IGU&#148;) is assessed by reference to value in use, which is defined as the present value  of discounted cashflows and/or net realizable value. The outcome of such an assessment is subjective, and the result sensitive to the discount rates applied in calculating the value in use, which will  be dependent on the type of asset and its location. Any impairment arising on an income-generating unit, other than an impairment which represents a consumption of economic benefits, is eliminated  against any specific revaluation reserve relating to the impaired assets in that income-generating unit with any excess being charged to the profit and loss account. Under US GAAP, the assessment of  the IGU&#146;s carrying value is by reference to undiscounted cashflows. To the extent that the undiscounted cashflows do not support the carrying value, the fa
ir value of the asset must be calculated and  the difference to the current carrying value charged to the profit and loss account.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2002, the Group recorded an impairment of its tangible fixed assets of &pound;113 million, all of which relates to Six Continents Hotels.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p59a"></a>OPERATING RESULTS</b></font></p>
<p><font face="serif" size="2"><b>Accounting Principles</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion and analysis is based on the Consolidated Financial Statements of the Group, which are prepared in accordance with UK GAAP. The principal differences between  UK GAAP and US GAAP as they relate to the Group are discussed in Note 32 of Notes to the Financial Statements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UK Financial Reporting Standard (FRS) 19 &#147;Deferred Tax&#148;, has been adopted for the first time in fiscal 2002. This change in accounting policy has been accounted for as a prior period  adjustment and previously reported figures have been restated accordingly. See &#147;Fiscal 2002 Compared with Fiscal 2001 &#150; New Accounting Standards&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal 2002 results include a number of major exceptional items totaling a net charge of &pound;24 million &#150; see &#147;Fiscal 2002 Compared with Fiscal 2001 &#150; Exceptional Items&#148; below. Fiscal 2001  results include a number of major exceptional items totaling a net charge of &pound;41 million &#150; see &#147;Fiscal 2001 Compared with Fiscal 2000 &#150; Exceptional Items&#148; below and fiscal 2000 results include  major exceptional income of &pound;1,293 million. In order to aid comparison with earlier years, some performance indicators in this Operating and Financial Review and Prospects discussion are  calculated after eliminating these major exceptional items. Such indicators are prefixed with &#147;adjusted&#148;.</font></p>
<p><font face="serif" size="2"><b>Fiscal 2002 Compared with Fiscal 2001</b></font></p>
<p><font face="serif" size="2"><b><i>Group</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total turnover fell by 10.4% from &pound;4,033 million in fiscal 2001 to &pound;3,615 million in fiscal 2002. Total operating profit before major exceptional items of &pound;618 million compared with &pound;792  million in fiscal 2001. Profit before tax was &pound;534 million in fiscal 2002, compared with &pound;690 million in fiscal 2001; excluding major exceptional items in both years, adjusted profit before tax was  &pound;558 million against &pound;731 million in the previous year. Basic earnings per ordinary share was 53.0p compared with 51.3p in fiscal 2001; eliminating the impact of major exceptional items, the  adjusted earnings per ordinary share was 42.4p compared with 56.2p for fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents Hotels continued to make both capital and revenue investment to ensure that it is well placed to gain maximum benefit from an upturn in the market. The ongoing estate in Six  Continents Retail achieved good operating profit growth, gained market share and, despite significant regulatory cost increases, was able to defend its operating margins. The soft drinks business had  another successful year, and increased both its market share and operating profit.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2002, Group turnover from continuing operations of &pound;3,615 million fell by 10.4% on the previous year. Turnover in SCH decreased 19.2% to &pound;1,532 million in fiscal 2002.  Turnover in SCR from the ongoing estate of &pound;1,475 million was 5.7% ahead of last year due to good sales growth in food, wine, soft drinks and accommodation. Soft Drinks turnover of  &pound;602&nbsp;million was up 5.4% on last year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating profit from continuing operations and before major exceptional items was &pound;618 million against &pound;792 million in fiscal 2001. SCH operating profit before major exceptional items was  &pound;262 million, down</font></p>
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<p><font face="serif" size="2">&pound;165&nbsp;million against fiscal 2001. SCR operating profit from the ongoing estate at &pound;288&nbsp;million was up 5.1% on last year. Soft Drinks had  a successful year with operating profit growth of over 10%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exceptional items before tax of &pound;24 million included an operating exceptional item of &pound;77 million and non-operating exceptional items totaling &pound;53 million &#150; see &#147;Fiscal 2002 Compared  with Fiscal 2001 &#150; Exceptional Items&#148; below. These operating and non-operating exceptional items have been excluded from the calculation of adjusted earnings per share.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit before tax was &pound;534 million compared with &pound;690 million in fiscal 2001; excluding major exceptional items, profit before tax was &pound;558 million against &pound;731 million in the previous year.  The taxation charge includes an exceptional credit of &pound;114 million in respect of the release of over provisions for tax in respect of prior years, a charge of &pound;10 million in relation to property disposals  and a credit of &pound;1 million in relation to Separation costs. Excluding the impact of the major exceptional items, the tax charge represented an effective tax rate of 30.0%, compared with (adjusted)  30.4% for fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group operating cash inflow of &pound;207 million was &pound;91 million greater than in fiscal 2001. This increase was due to the reduced level of net capital expenditure for the Group&#146;s continuing  operations which reduced to &pound;513 million from last year&#146;s level of &pound;868 million. After taking account of interest, dividend and tax payments, normal cash outflow was &pound;290 million compared with  &pound;397 million in fiscal 2001. Net debt at the end of the fiscal year amounted to &pound;1,177 million, resulting in a balance sheet gearing ratio of 22.0%.</font></p>
<p><font face="serif" size="2"><b><i>Six Continents Hotels</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year, SCH continued to invest in its businesses and position itself for an upturn in trading, while taking significant action to protect profit. In order to drive turnover growth,  marketing campaigns such as the reshaping of the InterContinental brand were coupled with investment in the sales force, reservations systems and e-commerce. Operating costs within the owned  and leased (&#147;O&amp;L&#148;) and managed hotel estates, together with corporate costs were reviewed as part of stringent cost management programs.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing programs focused on the key strengths in the InterContinental and Holiday Inn brands. In September 2002, the InterContinental brand reshaping project was announced. This  represents a $25&nbsp;million investment in marketing, advertising and enhancements in service and delivery, the majority of the expenditure being planned to be spent in the first half of fiscal 2003. The  Holiday Inn brand celebrated its 50th anniversary in August 2002 with significant media coverage, particularly in the United States. In the United Kingdom, marketing expenditure focused on the  expanded Holiday Inn brand presence following last year&#146;s acquisition of the Posthouse hotel chain. Sixty seven of the Posthouse hotels acquired have now been rebranded as Holiday Inns, bringing  the UK O&amp;L Holiday Inn estate to 76 properties.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total SCH system size stood at 3,325 hotels (515,525 rooms) at September 30, 2002, up from 3,267 hotels (514,696 rooms) at the start of the fiscal year. In the Americas, the expansion of  Holiday Inn Express continued with another 88 properties (all franchised) added in the year. The extended-stay brand, Staybridge Suites, also continued its expansion, with 11 hotels added in the  year. Two more hotels have opened since the year end, making Staybridge Suites the first up-market extended-stay hotel brand to reach 50 hotels in under four years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future system growth, indicated by the pipeline of hotels waiting to enter the SCH system, remained strong despite industry difficulties. At September 30, 2002, the pipeline stood at 479  hotels, with 64,362 rooms of which 24% were in the upscale brands. The events of September 11, 2001, and the general world economic conditions have led to uncertainty over the short and medium  term for hotel development, particularly in the United States. SCH has however, maintained its share of supply, and the strength of SCH&#146;s brands places it in a strong position to capitalize on any  system distribution opportunities as they arise.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in global reservation systems continued to yield benefits in fiscal 2002. During the fiscal year, SCH migrated booking for the InterContinental brand to the HolidexPlus system. It is  estimated that SCH&#146;s reservation systems delivered around 30% of the Americas midscale room nights sold, while internet bookings grew by 80% over the previous year to 4.5 million room nights.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s guest frequency program, Priority Club Rewards (&#147;PCR&#148;), was relaunched in 2002 and expanded its membership to nearly 15 million members. The strength and importance of PCR  was demonstrated by the fact that 29% of room nights in the Americas were sold to PCR members.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> SCH&#146;s turnover decreased by 17.0% from $2,726 million in fiscal 2001 to $2,262 million in fiscal 2002. Turnover comparisons to last year are distorted by two non-comparable  items. First, the conversion of the Bristol hotels from operating leases to management contracts, effective in the main from July 1, 2001, and second, the inclusion of 12 months of turnover from the  Posthouse business compared with only six months in fiscal 2001. On a comparable basis, turnover fell by 5.2%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating profit.</i> Operating profit before major operating exceptional items fell to $387 million against $613&nbsp;million in fiscal 2001. In sterling terms, operating profit was &pound;262 million against  &pound;427 million last year, a fall of 38.6%. The weighted average US dollar exchange rate to sterling for the year was $1.48 against $1.44 for fiscal 2001, which was marginally detrimental to the Group  when its result was converted into sterling.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH&#146;s operating
  profit was affected by both the economic slowdown in the United States and the
  September 11, 2001 terrorist actions. The operating mix of the varying business
  models (O&amp;L, management contract and franchise) demonstrated some resilience
  to the difficult trading conditions, with the franchise and management contract
  income streams being less affected by the downturn than the O&amp;L business.
  In the Americas, &#145;drive versus fly&#146; became a key factor in the face
  of reduced air travel, particularly in the first half of the year. The O&amp;L
  estate saw a significant fall in operating profit, while the midscale franchise
  business operating profit was less affected. Upper upscale markets in major
  US cities suffered due to their dependence upon domestic and international airline
  travel, whereas the &#145;drive to&#146; midscale segment (where SCH&#146;s
  franchise business is focused on Holiday Inn and Holiday Inn Express) performed
  better.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decline in international travel also impacted Europe, the Middle East and Africa (&#147;EMEA&#148;) and in particular, those key air travel gateway cities where SCH&#146;s upper upscale hotel  properties are concentrated: London, Paris and Amsterdam. Asia Pacific was also adversely affected by the reduction in international travel.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Americas.</i> The Americas system size grew by 81 hotels and 6,435 rooms to 2,604 hotels with 373,322 rooms at the end of fiscal 2002. The increase in the Holiday Inn Express franchise system  continued with another 88 properties added in the year which more than offset a reduction in Holiday Inn rooms. The extended-stay brand, Staybridge Suites, also continued its expansion, with 11  hotels added in the year. Total Americas operating profit was $264 million compared with $345 million in fiscal 2001, a 23% decline.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Americas region was the hardest hit by the events of September 11, 2001. Revenue per available room (&#147;RevPAR&#148;) for the first six months of fiscal 2002 fell by 23% for InterContinental,  21% for Crowne Plaza, 12.8% for Holiday Inn, 3.7% for Holiday Inn Express and 11.2% for Staybridge Suites. The remainder of the year saw an improvement in RevPAR, and resulted in RevPAR  for the full year being down 15.0% from the prior year for InterContinental, 14.7% for Crowne Plaza, 7.8% for Holiday Inn, 1.7% for Holiday Inn Express and 2.5% for Staybridge Suites.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance of the SCH O&amp;L estate in the Americas is heavily dependent upon profits from the upscale hotel properties in key cities. For the full year, RevPAR for the nine comparable O&amp;L  InterContinental hotels was down 12.7% from the prior year, with occupancy 0.2 percentage points higher and average daily rates 13.0% lower. The refurbishments of the New York, Chicago, Miami  and San Francisco InterContinental hotels were substantially completed during the fiscal year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crowne Plaza&#146;s O&amp;L hotels were impacted principally by the reduction in business, meeting and conference travel, driven by general weakness in the economy. Crowne Plaza has also  underperformed its competitive set partly due to a lack of distribution relative to principal branded competition in its segment. As a result, Crowne Plaza O&amp;L RevPAR fell by 13.8% for the year.  Overall, the Americas O&amp;L business made an operating profit of $23 million against $78 million in fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The overall size of the midscale franchise estate (over 2,000 franchised hotels for both Holiday Inn and Holiday Inn Express) and the resilience of the franchise model to economic slowdown,  meant that the business was better able to weather the difficult trading conditions. Operating profit at $200 million was only 10.7% lower than in fiscal 2001. RevPAR for Holiday Inn and Holiday  Inn Express was down 7.1% and 1.6% respectively.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Americas managed and upscale franchise operating profit of $41 million was $2 million lower than in fiscal 2001, reflecting the same economic difficulties that affected the O&amp;L estate.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Europe, the Middle East and Africa.</i> EMEA turnover grew by 9.2% to &pound;819 million from &pound;750&nbsp;million in fiscal 2001. Fiscal 2002, however, included the full year benefit of the Posthouse  business acquired in April 2001. Operating profit was &pound;125 million versus &pound;202 million in fiscal 2001. The US economic slowdown had a strong knock-on effect on European capital city hotels,  particularly in London, where the reduction in both US business and leisure travel affected occupancy levels and RevPAR. Upscale properties in London, Paris, Frankfurt, Amsterdam and Rome  were particularly affected by the reduced level of international travel following the events of September 11, 2001. Encouragingly, some recovery has been evidenced in the O&amp;L estate, where most  brands saw an improvement in RevPAR in the second half of the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the O&amp;L estate, InterContinental RevPAR (excluding the Paris Le Grand InterContinental) was down by 14.4% on fiscal 2001. The Paris Le Grand InterContinental closed in December  2001 for major refurbishment and is due to reopen in Spring 2003, while the InterContinental Madrid completed its refurbishment program during the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Holiday Inn O&amp;L estate now includes the acquired Posthouse hotels. In the United Kingdom, RevPAR for the estate on a comparable basis fell by 9.9% as a consequence of the tough  trading conditions, particularly in London which saw RevPAR declines of 20.7% on last year, due to the performance of the airport and central London hotels. The Holiday Inn UK refurbishment  program is progressing in line with plans, and approximately 1,600 rooms had been refurbished or were being refurbished by the end of fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the rest of Europe, properties in key cities suffered through the downturn in international travel, as reflected in EMEA&#146;s Holiday Inn O&amp;L RevPAR, which fell by 9.5% against fiscal 2001.  Similarly, Crowne Plaza O&amp;L RevPAR in EMEA fell by 11.0%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall, EMEA O&amp;L hotels generated an operating profit of &pound;98 million compared with &pound;171 million in fiscal 2001. In order to drive revenue growth, the region continued to invest in  marketing and targeted sales campaigns, particularly in the Holiday Inn UK business.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating profit for the managed and franchised business was &pound;27 million, down from &pound;31 million in fiscal 2001. In the franchised estate, Holiday Inn RevPAR was marginally ahead of last  year and Express grew by 8.4%, but upscale properties were impacted by global economic conditions and uncertainty in the Middle East.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Asia Pacific.</i> Turnover of $191 million was 31.7% higher than in fiscal 2001, mainly due to the full year contribution from the InterContinental Hong Kong, acquired in August 2001. Asia  Pacific operating profit was $36 million, compared with $26 million in fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The events of September 11, 2001 particularly impacted the InterContinental Hong Kong, whose customer base includes a large international travel element, although in recent months trading  has improved. The full year contribution from the InterContinental Hong Kong was $13.5 million. The hotel was recently voted &#145;Leading Hotel in Asia Pacific&#146; in the World Travel Awards, and was  placed 22nd in the Conde Nast Traveller US &#145;Best 100 in the World&#146;, up from 36th place last year. The Australian O&amp;L hotels performed ahead of their competitive sets, although RevPAR was 6.5%  down on last year with occupancy 3.6 percentage points lower, reflecting the poor economic conditions in the region.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Other.</i> The Other segment, which comprised central service costs and goodwill amortization, less other income items, was $97&nbsp;million compared with $48 million in fiscal 2001. Dividends  received from FelCor fell by $13&nbsp;million to $9 million, while fiscal 2001 included $10 million of income from lease terminations that were not repeated in fiscal 2002. Increased central overheads  reflected the continued drive behind global brand marketing and advertising.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash flow and investment.</i> Net capital expenditure amounted to &pound;259 million and included proceeds from disposals of &pound;108 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Americas, major expansion projects focused on the owned estate and included the Houston Galleria conversion from Crowne Plaza to InterContinental, the development of the  InterContinental Buckhead Atlanta and ongoing investment in owned Staybridge properties. The InterContinental refurbishment program included expenditure on hotels in New York, Chicago,  Miami and San Francisco.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In EMEA, significant expansion expenditure included the Crowne Plaza Birmingham NEC and the Holiday Inn Paris Disneyland. The InterContinental refurbishment program focused upon  the Paris Le Grand and Madrid hotels, while Holiday Inn UK capital expenditure was focused on the former Posthouse estate brand conversion.</font></p>
<p><font face="serif" size="2"><b><i>Soft Drinks</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> Overall, turnover was up by 5.4% to &pound;602 million in fiscal 2002 on volumes up 4.4% on fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soft Drinks had a successful year, and increased both its market share and operating profit. Robinsons&#146; volumes were up 13.0% on fiscal 2001 and it increased its share of the dilutables market  by some 2.7 percentage points. Fruit Shoot continued to perform strongly, and captured 4.9% of the fruit drinks take-home market. Pepsi volumes were up over 9% on fiscal 2001, and Soft Drinks  increased its overall share of the take-home carbonates market by 0.3%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating profit.</i> Strong business controls resulted in operating profit growth of over 10% to &pound;63 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash flow and Investment.</i> During the year, Soft Drinks made significant investment in new product development and increased its capacity for Fruit Shoot production. On August 14, 2002,  Soft Drinks purchased the business and the rights in the United Kingdom and Republic of Ireland for Red Devil, an energy drink. Operating cash inflow was &pound;77 million compared with &pound;99 million in  fiscal 2001, after capital expenditure of &pound;31&nbsp;million, up &pound;3 million on the prior year.</font></p>
<p><font face="serif" size="2"><b><i>Six Continents Retail</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> Total turnover in the ongoing estate (comprising Pubs &amp; Bars and Restaurants, but excluding Inns and Other) of &pound;1,475 million was 5.7% ahead of fiscal 2001, with food sales up by  9.8% and drink sales up by 4.4%. A strong performance in suburban pubs and restaurants was partially offset by difficult trading conditions in London and on the high street (main street). Sales per  outlet increased from &pound;13,900 per week in fiscal 2001 to just over &pound;14,200 per week in fiscal 2002, and invested like-for-like sales were up 2.0%. The number of outlets trading in excess of &pound;20,000  per week increased from 350 in fiscal 2001 to 370 in fiscal 2002, an increase of 5.7%. Despite an estimated &pound;19 million increase in regulatory driven costs, SCR was able to defend its margins  through a combination of increased staff productivity, purchasing gains and price increases above inflation. However, as a result of its pri

cing policy, SCR has deliberately forgone some volume in  order to protect margins. As a consequence of these factors and the effects of the poor weather during the 2002 summer compared to the previous year, core uninvested outlet like-for-like sales were  down by 1.5%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR&#146;s estate consisted of 2,105 outlets of which 2,083 were managed. Of the total, 669 were in the Restaurants division and 1,436 in the Pubs &amp; Bars division. At September 30, 2002, SCR  had a total of 1,167 branded outlets, comprising 1,126 outlets spread across residential and city center locations throughout the United Kingdom, and 41 outlets in Germany. SCR continued its  program of converting outlets to brands and formats. In fiscal 2002, 198 conversions were completed, of which 75% were to suburban brands and formats where SCR continued to focus the majority  of its development expenditure. Of the 550 former Allied Domecq sites acquired in October 1999, 401 have been converted to SCR brands and formats, achieving sales uplifts of around 40%. SCR  has some 500 unbranded sites in its portfolio that are suitable for conversion to its brands or formats over the next three to four years, providing opportunity for further profit growth and

 high returns.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pubs &amp; Bars sales grew by 4.1% to &pound;866 million, with particularly strong growth in the residential pub market, led by strong growth from Ember Inns and Scream. Trading in the city center  drink market was weaker due to increased competition, and the performance of London pubs and bars was particularly impacted by the downturn in the financial services industry and a reduced  number of overseas visitors to London. Operating profit of &pound;190 million was up 1.6% on 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant sales of &pound;609 million were up by 8.0% on fiscal 2001, with drink sales up 4.7% and food sales up 10.8%, reflecting a strong performance in the suburban pub restaurants sector, led  by Toby Carvery and Vintage Inns. Operating profit was 12.6% ahead of fiscal 2001 at &pound;98 million, despite difficult trading conditions experienced in the city center food-led outlets due to the high  proportion of outlets located in London.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating profit.</i> Operating profit in the ongoing estate of &pound;288 million was 5.1% ahead of fiscal 2001 reflecting the overall sales growth of 5.7%. Post tax cash return on cash capital employed  was over 10% in the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash flow and Investment.</i> SCR generated an operating cash inflow of &pound;144 million after net capital expenditure of &pound;227 million. During the year, &pound;163 million was spent on outlet  acquisitions, conversions and expansion, which included &pound;55 million on conversion of the former Allied Domecq pubs to SCR brands and formats.</font></p>
<p><font face="serif" size="2"><b><i>Exceptional Items</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible fixed assets have been written down by &pound;113 million following an impairment review of the hotel estate; &pound;77 million has been charged as an operating exceptional item and &pound;36  million reverses previous revaluation gains. Non-operating exceptional items of &pound;57 million included the release of &pound;48 million of disposal provisions no longer required and the receipt of &pound;9 million  in respect of the finalization of completion accounts issues, both of which related to the disposal of Bass Brewers in August 2000. In addition, &pound;4 million has been charged for costs incurred to  September 30, 2002, in evaluating the proposals announced by the board on October&nbsp;1, 2002, to separate the Group&#146;s retail business from the hotel and soft drinks operations. These operating and  non-operating exceptional items have been treated as major exceptional items and have therefore been excluded from the calculation of
adjusted earnings per share.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The taxation charge includes an exceptional credit of &pound;114 million in respect of the release of tax provisions from prior years, a charge of &pound;10 million in relation to property disposals, and a  credit of &pound;1 million in relation to the Separation costs referred to above. The exceptional credit of &pound;114 million and the credit of &pound;1 million in respect of Separation costs have been treated as major  exceptional items and have been excluded from the calculation of adjusted earnings per share.</font></p>
<p><font face="serif" size="2"><b><i>Net Interest</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net interest charge was &pound;60 million compared to &pound;59 million in fiscal 2001. The effect of a higher level of net debt was offset by lower average interest rates, a weaker US dollar exchange  rate against sterling and the impact of translation hedging as set out below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To hedge the exposures arising from the translation of foreign currency denominated assets and income streams, borrowings are taken out in foreign currencies. Hedging is carried out partly  with currency swaps, which are equivalent to a deposit in sterling and the borrowing of an equivalent amount in the required currency. These are used together with interest rate swaps and other  instruments which protect the Group against rises in interest rates. The use of such interest rate and currency swaps for hedging purposes reduced the Group&#146;s interest charge by a net &pound;19 million,  representing the difference between sterling deposit rates and US dollar, euro or Australian dollar borrowing rates, together with the additional interest payable under the interest rate swaps.</font></p>
<p><font face="serif" size="2"><b><i>Taxation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding the impact of the major exceptional items, the tax charge represents an effective rate of 30.0%, compared with 30.4% for fiscal 2001. These rates reflect the adoption of FRS 19 (see  &#147;Basis of Accounting&#148; in Note 1 of Notes to the Financial Statements).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding the effect of major exceptional items and prior year items, the Group&#146;s tax rate was 35.8%. The difference from the UK statutory rate of 30.0% arose primarily due to overseas  profits being taxed at rates higher than the UK statutory rate.</font></p>
<p><font face="serif" size="2"><b><i>Earnings and Dividends</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings totaled &pound;457 million in fiscal 2002, compared with &pound;443 million in fiscal 2001, and the equivalent basic earnings per share were 53.0p and 51.3p, respectively. As in previous years,  earnings per share have been adjusted to eliminate the distorting effect of the major exceptional items, with the result that adjusted earnings per share were 42.4p, compared with 56.2p in fiscal 2001.  Diluted earnings per share, which reflect the number of options outstanding at September 30, 2002, were 52.7p in fiscal 2002 compared with 51.0p in fiscal 2001.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A final dividend of 24.6p per share was declared on February&nbsp;13, 2003, bringing the total dividend for the year to 35.3p. This represents an increase of 2.9% on fiscal 2001 and gives dividend  cover of 1.2 times based on adjusted earnings.</font></p>
<p><font face="serif" size="2"><b><i>Cash Flow and Capital Expenditure</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash inflow of &pound;207 million was &pound;91 million higher than cash inflow for fiscal 2001 of &pound;116&nbsp;million. This reflected a much lower level of net capital expenditure in the fiscal year,  which decreased from &pound;868 million in fiscal 2001 to &pound;513 million in fiscal 2002. SCH&#146;s net capital expenditure was &pound;348 million lower than in fiscal 2001, due in part to the fact that fiscal 2001  included the acquisition of the InterContinental Hong Kong for $346 million. SCR&#146;s net capital expenditure of &pound;227 million included &pound;163 million in respect of outlet acquisitions, conversions and  expansion which included &pound;55 million on conversion of the former Allied Domecq pubs to SCR brands and formats.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of interest, dividends and taxation of &pound;497 million was &pound;16 million lower than in fiscal 2001. Net debt at September 30, 2002, was &pound;1,177 million, compared with &pound;1,001 million at  the start of the fiscal year.</font></p>
<p><font face="serif" size="2"><b>New Accounting Standards</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Reporting Standard (FRS) 19 &#147;Deferred Tax&#148; applies for the first time in fiscal 2002. It requires full provision for deferred tax, subject to certain exceptions, arising from timing  differences between the recognition of gains and losses in the financial statements and for tax purposes. The effect has been to increase the Group&#146;s effective tax rate by six percentage points,  although this is offset in the year by adjustments to opening balances, which reduce the reported impact to three percentage points. The full impact of adopting FRS 19 is detailed in Note 1 of Notes  to the Financial Statements. FRS 19 has no impact on the Group&#146;s cash flows.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the announcement by the Accounting Standards Board to defer the full implementation of FRS 17 &#147;Retirement Benefits&#148; to accounting periods beginning on or after January 1,  2005, the Group will continue to account for pensions under Statement of Standard Accounting Practice (SSAP) 24 &#147;Accounting for Pension Costs&#148;. The additional disclosures required by the  transitional arrangements of FRS 17 are included in Note 4 of Notes to the Financial Statements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the above, the financial statements have been drawn up using accounting policies unchanged from the previous year.</font></p>
<p></p>
<p><font face="serif" size="2"><b>Fiscal 2001 Compared with Fiscal 2000</b></font></p>
<p><font face="serif" size="2"><b><i>Group</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total turnover fell by 21.8% from &pound;5,158 million in fiscal 2000 to &pound;4,033 million in fiscal 2001, while turnover from continuing operations increased by 6.8%. Total operating profit of &pound;792  million compared with &pound;905 million in fiscal 2000, while operating profit from continuing operations was up by 2.1% against &pound;776&nbsp;million in fiscal 2000. Profit before tax was &pound;690 million in fiscal  2001, compared with &pound;2,049&nbsp;million in fiscal 2000; excluding major exceptional items in both years, adjusted profit before tax was &pound;731&nbsp;million against &pound;756 million in the previous year. Basic  earnings per ordinary share was 51.3p; eliminating the impact of major exceptional items, the adjusted earnings per ordinary share was 56.2p compared with 58.4p for fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2001, the Group continued to reshape its business following the sale of the brewing operations in the previous year. In February 2001, SCR sold for &pound;625 million, 988 smaller  outlets that were not suited for conversion to its brands. In April 2001, SCH acquired the Posthouse hotel chain, comprising 79 hotels in the United Kingdom and the Republic of Ireland. In August  2001, SCH completed the acquisition of the former Regent Hotel in Hong Kong for $346 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terrorist activities in the United States on September 11, 2001, and subsequent global uncertainty had a significant impact on international and domestic US travel which in turn impacted  the results of the Group. The effect of these events is estimated to have reduced the profits of SCH during the period September 11, 2001 to</font></p>
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<p><font face="serif" size="2">September 30, 2001 by some $25 million. In SCR, the outlets in central London were the only ones to have been impacted by the events of  September 11.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turnover for continuing operations increased by 6.8% to &pound;4,033 million. SCH reported turnover growth of 19.9% to &pound;1,896 million; however, this included a six month contribution of &pound;144  million from Posthouse. In SCR, turnover from the ongoing estate was up 4.3% to &pound;1,396 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating profit amounted to &pound;749 million; however, this included a major exceptional item of &pound;43&nbsp;million relating to reorganization, restructuring and strategic appraisal costs in SCH.  Excluding this major exceptional item, operating profit from continuing operations of &pound;792 million was up &pound;16 million against &pound;776&nbsp;million in fiscal 2000. SCH operating profit before major  exceptional items increased by &pound;51 million to &pound;427&nbsp;million, including a six months contribution from Posthouse of &pound;37 million; excluding Posthouse, the operating profit growth would have been  3.7%. SCR continued to actively reposition its estate towards larger branded outlets. Operating profit in the ongoing estate at &pound;274 million was up 1.1% against &pound;271 million in fiscal 2000. Soft  Drinks had an exceptional year with operating profit growth of nearly 24%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profit before tax was &pound;690 million compared with &pound;2,049 million in fiscal 2000; excluding major exceptional items, adjusted profit before tax was &pound;731 million in fiscal 2001 against &pound;756  million in the previous year. The effective rate of tax at 30.4%, excluding the impact of the major exceptional items in both years, was unchanged from the previous year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share were 51.3p compared with 193.7p in fiscal 2000; eliminating the impact of major exceptional items, the adjusted earnings per share were 56.2p, a decline of 3.8% on  the 58.4p achieved in fiscal 2000. The total dividend for the year was 34.3p, up 3.0% from fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group operating cash flow from continuing operations of &pound;76 million compared to &pound;328 million in fiscal 2000. This reduction was primarily due to the significant level of net capital  expenditure for the Group&#146;s continuing operations, which increased to &pound;868 million from fiscal 2000 of &pound;597 million. Payments of interest, dividends and taxation absorbed &pound;513 million, compared  with &pound;585 million in fiscal 2000, reflecting the fact that the Group&#146;s interest payments decreased significantly as a result of the average level of debt being lower following the disposal of the Group&#146;s  brewing operations in fiscal 2000. After taking account of the major acquisition in SCH of &pound;752 million and the major disposal proceeds of &pound;623 million, net cash outflow was &pound;526&nbsp;million  compared with an inflow of &pound;1,732 million in fiscal 2000.</font></p>
<p><font face="serif" size="2"><b><i>Six Continents Hotels</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> Total turnover was up by 19.9% to &pound;1,896 million in fiscal 2001, while in US dollar terms turnover increased by 11.1% from $2,454 million in fiscal 2000 to $2,726 million in fiscal  2001. Of the increase, $208 million was due to the six months contribution from Posthouse.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total SCH system size grew in fiscal 2001, from 3,063 hotels (491,100 rooms) at the start of the year to 3,267 hotels (514,700 rooms) at September 30, 2001 with over 70% of the growth  in rooms outside the United States. This growth included the acquisition on April 4, 2001 of Posthouse, comprising 79 midscale hotels, of which 77 hotels were owned or held under long lease and 78  were in the United Kingdom and one in the Republic of Ireland. This acquisition was in line with the Group&#146;s strategic goal of building its midscale distribution in Western Europe, and enabled the  Holiday Inn brand to develop a strong position in the UK market. By the year end, 46 Posthouse hotels had been converted to Holiday Inn and by the end of October 2001 a further 12 were converted.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A further important strategic move was the acquisition of the Regent Hotel in Hong Kong. This hotel transferred to SCH management from June 1, 2001, and became fully owned from the end  of August. The 514 room hotel, renamed the Hotel InterContinental Hong Kong, expanded SCH&#146;s presence in Hong Kong and consolidated its position as the leading branded hotel company in  China, giving the InterContinental brand higher visibility in the Asia Pacific region.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Asia Pacific, the rebranding of the hotels acquired in fiscal 2000 from Southern Pacific Hotels Corporation continued with a further eight former Parkroyal and ten former Centra properties  being converted to SCH brands.</font></p>
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<p><font face="serif" size="2">These included two properties formerly managed but now owned by SCH &#150; the InterContinental Wellington, New Zealand and the  Crowne Plaza Canberra, Australia.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding Posthouse, the overall system size grew by 125 hotels, or some 11,300 rooms. In the Americas region, the expansion of Holiday Inn Express continued with another 110 properties  (all franchised) added in the year. The extended-stay brand, Staybridge Suites, also continued its expansion with 17 additions in the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pipeline of hotels waiting to enter the SCH system at September 30, 2001 was 520 hotels with 69,100 rooms &#150; this included approved applications for 441 franchises and 69 management  contracts. Of the hotels in the pipeline, 392 were in the Americas and 109 in EMEA. An encouraging 18,600 rooms or 27% of the rooms in the pipeline were in the upscale InterContinental and  Crowne Plaza brands.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A strength of SCH is the proportion of its business that is generated by its global reservation systems, including the Internet. During fiscal 2001, it is estimated that SCH&#146;s reservation systems  delivered around 30% of Americas midscale room nights sold. Internet bookings grew by nearly 80% over the previous year to 2.5 million room nights in fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating Profit.</i> Operating profit before major exceptional items increased by 13.6% from &pound;376 million in fiscal 2000 to &pound;427 million in fiscal 2001. In US dollar terms, operating profit  increased by 5.0% to $613 million in fiscal 2001; excluding Posthouse, the operating profit would have been approximately 4.1% down on fiscal 2000. Operating profit was impacted by both the  economic slowdown in the United States and the September 11, 2001, terrorist actions. It is estimated that the latter&#146;s effect on late September trading was to reduce fiscal 2001 operating profit by  approximately $25 million, or 4.3 percentage points of growth.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average US dollar to sterling exchange rate during the year was $1.44 against $1.55 in fiscal 2000; this benefited the Group as the SCH result was converted to sterling. Had US  dollar and other major exchange rates been the same as in fiscal 2000, it is estimated that the SCH operating profit growth would have been 8.5%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Americas.</i> The Americas system size grew by 109 hotels and 9,500 rooms to 2,523 hotels with 366,900 rooms at September 30, 2001. As discussed above, this growth was almost entirely due  to growth in the Express franchise system.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2000 SCH acquired Bristol, a US based hotel management company that leased or managed 112 hotels including 83 SCH branded properties. Bristol has now been fully integrated  into the Americas business. This integration involved terminating a number of non-SCH branded operating leases, and converting all the remaining operating leases to management contracts.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total Americas operating profit in fiscal 2001 was $345 million compared with $353 million in fiscal 2000. Following a strong first quarter (October to December 2000), the economic  slowdown in the United States saw SCH experiencing first, declining RevPAR growth and then, RevPAR declines, in common with the rest of the US hotel industry.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Americas O&amp;L estate made an operating profit of $78 million, $17 million lower than in fiscal 2000. The decline was the result of three factors. First, the impact of the US economic  slowdown, which particularly affected New York, Chicago and San Francisco, hit the InterContinental properties in these cities. Secondly, InterContinental had over 10% of its O&amp;L rooms closed  with the ongoing refurbishment of four key properties during fiscal 2001; and finally, the events of September 11 reduced profits in the last three weeks of fiscal 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;InterContinental&#146;s O&amp;L RevPAR was down by 14% on fiscal 2000 to the end of August 2001, and with September experiencing RevPAR over 50% down on fiscal 2000, the year ended 18%  down. Comparisons to fiscal 2000 however, were distorted by the impact of the major refurbishments and room closures in the year. Gross operating margins held up well, reflecting SCH&#146;s ability to  manage hotels through the economic slowdown.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crowne Plaza O&amp;L properties weathered fiscal 2001 slightly better; for the 11 months to the end of August 2001, RevPAR was down 2.0% on fiscal 2000. With September 2001 RevPAR over  30% from September 2000, full year fiscal RevPAR was down 4.5%. As with InterContinental, gross operating margins in fiscal 2001 were in line with fiscal 2000.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The midscale franchise business achieved an operating profit of $224 million in fiscal 2001, well ahead of fiscal 2000&nbsp;($209&nbsp;million). This result demonstrated two things: first the relative  resilience for the franchisor (i.e. SCH) of the franchise model in an economic slowdown; and secondly, the relative strength of SCH&#146;s key midscale brands, Holiday Inn and Holiday Inn Express. The  midscale franchise system grew in the year, driven by Holiday Inn Express, which had a 7.4% increase in the number of rooms occupied. To the end of August&nbsp;2001, RevPAR was holding up well,  Holiday Inn being down only 0.8% and Holiday Inn Express up by 2.0%. With September RevPAR being 20% and 10% down respectively, Holiday Inn RevPAR finished fiscal 2001 2.5% down on  fiscal 2000 and Holiday Inn Express up 0.8%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the events of September 11, certain levels of support were put in place for franchisees in the United States. This support included the waiving of certain assessments on the hotels  for a period of time and additional sales and marketing assistance.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Americas managed and upscale franchise operating profit totaled $43 million fiscal 2001, which included the fully integrated Bristol business. Crowne Plaza managed hotels RevPAR was  12.3% down for the full year and Crowne Plaza franchised RevPAR was 4.9% down for the full year, reflecting the same economic difficulties that afflicted the O&amp;L estate. The conversion of the  Bristol hotels from operating leases to management contracts, effective in the main from July 1, 2001, meant that SCH&#146;s turnover was distorted by the inclusion of all the turnover of those hotels to  that date, but only management fees received by SCH thereafter.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Europe, the Middle East and Africa.</i> The acquisition of Posthouse was the key strategic event in the EMEA region in fiscal 2001, adding 77 owned and leased and 2 managed hotels to the SCH  system. The overall EMEA system size grew to 585 hotels.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The O&amp;L business saw operating profit rise by &pound;37 million to &pound;171 million in fiscal 2001, including &pound;37&nbsp;million from Posthouse. Performance of the O&amp;L estate across the region was mixed.  InterContinental O&amp;L across EMEA achieved RevPAR growth of 1.2% to the end of August, with regional performance varying &#150; United Kingdom (four properties) down 9.5%, France (three  properties) up 9.6% and Germany (three properties) up 8.6%. Crowne Plaza similarly was ahead in the 11 months to August 2001, RevPAR being 1.6% ahead.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By August 2001, the US economic slowdown was already having a knock-on effect on European capital city hotels, particularly in London, where the reduction in both US business and  leisure travel were affecting occupancy levels and RevPAR. The events of September 11, 2001, had a significant impact on those properties relying on international travel, in particular the upscale  properties. Key properties in London and Paris saw a large RevPAR decline through the end of September. For the full year InterContinental O&amp;L RevPAR fell by 1.3% and Crowne Plaza RevPAR  was level with fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Posthouse performed in line with expectations, generating an operating profit of &pound;37 million in fiscal 2001, despite tough trading conditions, particularly in the south of England. Across  EMEA, Holiday Inn saw O&amp;L  RevPAR up by 3.8%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The EMEA managed and franchised businesses made an operating profit of &pound;31 million, the same as fiscal 2000, despite a key property in Germany moving from management contract into  ownership. RevPAR performance across the estate was mixed; to August 2001, InterContinental managed RevPAR was up by 0.4%, while Crowne Plaza managed RevPAR was down by 0.7% and  franchise fell by 1.9%. Holiday Inn franchise saw RevPAR growth of 4.2% for the full year, while Express franchise also saw RevPAR growth of 4.2%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall, EMEA&#146;s operating profit was &pound;202 million in fiscal 2001, 22% up on fiscal 2000 including the benefit of six months Posthouse trading. Excluding this, operating profit was level with  fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Asia Pacific.</i> The Asia Pacific region had an operating profit of $26 million in fiscal 2001, $4 million down on fiscal 2000. Despite benefiting from a full 12 months of profits from the SPHC  hotels acquired in January 2000, the economic conditions in the region, particularly in Australia, had an adverse impact on the results. While the Australian hotels performed ahead of their  competitive sets, their O&amp;L RevPAR was 5.7% down on the previous year with occupancy 1.8 percentage points lower. The events of September 11, 2001, also had some impact on the region,  particularly in Hong Kong, where the Hotel InterContinental Hong Kong was acquired at the end of August 2001.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Other.</i> The Other segment includes Central service costs, less other income items. In fiscal 2001, this income included $22 million of dividends received from FelCor, up $1 million on fiscal  2000, and $10 million of income from lease terminations. Following the events of September 11, 2001, FelCor management announced plans to re-evaluate its common dividend policy, which  resulted in a significant dividend reduction.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash flow and Investment.</i> Excluding the major acquisition of Posthouse, net capital expenditure amounted to &pound;607 million in fiscal 2001. This included &pound;139 million on the planned  refurbishment program at InterContinental properties (&pound;63 million in EMEA, &pound;76 million in the United States) and the continued expansion of the Staybridge Suites brand in the United States (&pound;28  million). In Asia Pacific, the acquisition of the Hotel InterContinental Hong Kong, as well the addition of the InterContinental Wellington, New Zealand and Crowne Plaza Canberra, Australia, both  previously Parkroyal management contracts, contributed to the region&#146;s capital expenditure. The ongoing refurbishment program in the owned InterContinental estate was expected to continue to  require large capital expenditure in fiscal 2002, particularly on the hotels in Paris (Le Grand), Cannes, Chicago and Madrid. Fiscal 2002 will also include 
expenditure on the continuing refurbishment  and upgrade of the London Forum. This was rebranded from October 1, 2001 to the Holiday Inn London &#150; Kensington Forum and, with 910 rooms, became the world&#146;s largest Holiday Inn.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH operating cash flow in fiscal 2001 was an outflow of &pound;80 million compared with an inflow of &pound;114&nbsp;million in fiscal 2000. This reflected the higher level of net capital expenditure in  fiscal 2001.</font></p>
<p><font face="serif" size="2"><b><i>Soft Drinks</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> Overall, turnover was up by 5.9% to &pound;571 million in fiscal 2001 on volumes up 3.2% on fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the disappointing fourth quarter of fiscal 2000 continued into the first quarter of fiscal 2001, virtually all sectors saw growth in the summer period. Fiscal 2001 saw the continuation  of intense competition by major retailers on pricing, which resulted in average retail prices in the take-home channel being flat year on year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robinsons performed strongly in fiscal 2001, generating volume growth of over 17% on fiscal 2000 and increased its share of the dilutables market by 3.2 percentage points. Fruit Shoot,  launched in the summer of 2000, captured 4.5 percentage points of the fruit drinks take-home market in fiscal 2001. However, Soft Drinks saw a reduction of 1 percentage point in its market share of  the take-home carbonates market, due to intense promotional investment by competitors.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating profit.</i> Soft Drinks had an exceptional year in fiscal 2001, with operating profit of &pound;57 million up 23.9% on fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash Flow and Investment.</i> Soft Drinks continued to invest in new product development and expansion of its production capacity. Operating cash inflow in fiscal 2001 was &pound;99 million after  capital investment of &pound;28 million.</font></p>
<p><font face="serif" size="2"><b><i>Six Continents Retail</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Turnover.</i> Total turnover in the ongoing estate was up 4.3% to &pound;1,396 million in fiscal 2001, with food sales up 10.1% and drink sales up 3.1%. In core uninvested outlets, like-for-like sales  were down 0.8% over the previous fiscal year in total, but this represented year on year growth in the second half of 0.1%. Branded uninvested like-for-like sales were 0.4% ahead of the previous  year, with particularly strong performances from Ember Inns, Hollywood Bowl, Vintage Inns and All Bar One.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market started to see an underlying improvement in the balance of supply and demand for the pub and restaurant sector in general. However, there were a number of one-off adverse  external factors which impacted trading. Fiscal 2001 started with exceptionally wet weather and regional flooding, followed by the impact of the foot and mouth epidemic in the spring. Against this  background, increases in employment and property costs continued to put pressure on SCR&#146;s cost base. The trend towards polarization of the market to large branded outlets and smaller unbranded  community pubs continued apace, with leading pub retailers continuing to rationalize their estates.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR continued to actively move the mix of its estate towards larger branded outlets, moving from 792 branded outlets at the end of fiscal 2000 to 967 at the end of fiscal 2001. In February  2001, SCR sold 988 smaller</font></p>
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<p><font face="serif" size="2">outlets that were not suited for conversion to its brands for &pound;625 million. Investment in the ongoing estate continued strongly with the  opening of 36 new branded outlets and the conversion of a further 139 unbranded outlets to branded formats. Of the 550 former Allied  Domecq outlets acquired in the previous fiscal year, at the end of fiscal 2001 a total of 263 had been converted to SCR formats and a  further 41 refurbishments were in progress. These converted sites recorded sales uplifts in excess of 40% above the last full year under the  previous owners.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the end of fiscal 2001, SCR operated a total of 2,053 managed outlets; 639 in the Restaurants division and 1,414 in the Pubs &amp; Bars division. The continuing shift in the shape of the  business away from a beer dominated pub operator was illustrated through the change in sales mix, with food sales accounting for 28% of total sales compared with 23% in fiscal 2000. As a result,  the overall average weekly takings per outlet increased from &pound;10,700 in fiscal 2000 to &pound;13,900 in fiscal 2001, a rise of 30%. Over 650 outlets had average weekly takings in excess of &pound;15,000,  compared with just over 540 outlets in fiscal 2000. The number of outlets with sales in excess of &pound;20,000 rose to over 350, compared with some 300 outlets in fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Operating profit.</i> Total operating profit of &pound;305 million was 11.8% down on the prior year. In the ongoing estate, operating profit grew by 1.1% to &pound;274 million, however this growth was held  back by the refurbishment program. The incremental negative impact of closure and pre-opening costs resulting from the accelerated investment program was &pound;11 million; excluding these costs, the  underlying operating profit growth was 4.9%. The investment in branded outlets continued to generate returns on average in excess of 15%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash flow and Investment.</i> SCR generated an operating cash inflow of &pound;66 million after net capital investment of &pound;288 million, compared with an operating cash inflow of &pound;213 million after  net capital expenditure of &pound;204 million in fiscal 2000. In fiscal 2001, &pound;224 million was spent on outlet acquisitions, conversions and expansion and included &pound;102 million on conversion of the former  Allied Domecq pubs to SCR brands and formats.</font></p>
<p><font face="serif" size="2"><b><i>Exceptional items</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The operating exceptional item of &pound;43 million related to reorganization, restructuring and strategic appraisal costs in SCH. The non-operating exceptional items of &pound;2 million included a loss  on the disposal of 988 smaller unbranded pubs, and a profit from the finalization of the pension scheme transfer, following the disposal of the Group&#146;s brewing operations last year. These operating  and non-operating items have been treated as major exceptional items and their effect, along with the impact of the associated tax charge of &pound;1 million have been excluded from the calculation of  adjusted earnings per share. Other exceptional items were minor and amounted to a &pound;2 million charge in total.</font></p>
<p><font face="serif" size="2"><b><i>Net Interest</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net interest charge decreased by &pound;93 million to &pound;59 million. This was mainly due to the lower average level of debt following the receipt of &pound;2.3 billion from the disposal of the Group&#146;s  brewing operations last year. The Group saw a further reduction in the level of net debt following the sale of the 988 pubs in February 2001, but borrowings later increased with the acquisition of  Posthouse and the Hotel InterContinental Hong Kong.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group deposited the brewing and pub proceeds in sterling investments and also in currency swaps which were used to replace US dollar and other currency borrowings from banks. As a  result there was an &pound;87&nbsp;million increase in net sterling interest receivable. US dollar interest payable fell by some &pound;7 million overall. This was the net result of lower overall interest rates more than  offsetting the impact of higher average borrowings, and a weaker average sterling/US dollar exchange rate (2001 &pound;1:$1.44; 2000 &pound;1:$1.55).</font></p>
<p><font face="serif" size="2"><b><i>Taxation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding the impact of the major exceptional items, the tax charge represents an effective rate of 30.4%, unchanged from fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding the effect of major exceptional items and prior year items, the Group tax rate was 30.5%, compared with 30.0%, the rate nominally applicable in the United Kingdom. This  difference arises primarily due</font></p>
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<p><font face="serif" size="2">to overseas profits being taxed at rates higher than the UK statutory rate, offset by the recognition of certain overseas tax losses following  an internal reorganization.</font></p>
<p><font face="serif" size="2"><b><i>Earnings and Dividend</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings totaled &pound;443 million in fiscal 2001 against &pound;1,691 million in fiscal 2000; the equivalent basic earnings per share were 51.3p and 193.7p, respectively. Eliminating the distorting effect  of the major exceptional items, adjusted earnings per share were 56.2p, compared with 58.4p in fiscal 2000. Diluted earnings per share, which reflect the number of options outstanding at September  30, 2001, were 51.0p in fiscal 2001 compared with 192.4p in fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total dividend for the fiscal year was 34.3p, representing an increase of 3.0% on the previous fiscal year and dividend cover of 1.6 times based on adjusted earnings.</font></p>
<p><font face="serif" size="2"><b><i>Cash flow and Capital Expenditure</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash inflow from continuing operations of &pound;76 million was &pound;252 million lower than the prior fiscal year&#146;s cash inflow of &pound;328 million, reflecting the significant increase in the level  of net capital expenditure, which increased by &pound;271 million to &pound;868 million. Net capital expenditure in SCH was significantly higher than in the previous year and reflected the acquisition of the  Hotel InterContinental Hong Kong for $346 million and expenditure on the ongoing refurbishment program of the InterContinental owned hotels. SCR net capital expenditure of &pound;288 million was  &pound;84 million higher than in the previous fiscal year, due to expenditure on outlet acquisitions, and the continued refurbishment and conversion to SCR brands of the pubs formerly owned by Allied  Domecq.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of interest, dividends and taxation absorbed &pound;513 million, compared with &pound;585 million in fiscal 2000. The main reason for this improvement in cash flow was the decrease in the  Group&#146;s interest payments, as a result of the average level of debt being much lower following the disposal of the Group&#146;s brewing operations in fiscal 2000. Including cash flows from discontinued  operations, normal cash outflow was &pound;397 million, being &pound;295 million more than fiscal 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash outflow of &pound;752 million for major acquisitions reflected the amount paid for Posthouse. Major disposals cash inflow of &pound;623 million reflected the proceeds from the sale of 988  smaller unbranded outlets and the receipt of deferred consideration in respect of the pension scheme transfer, following the sale of Bass Brewers in fiscal 2000. After taking account of &pound;103 million  for the repurchase of Six Continents PLC shares, the impact of exchange movements and debt acquired, net debt at September 30, 2001, was &pound;1,001 million, compared with &pound;345 million at the start  of the fiscal year.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p71a"></a>LIQUIDITY AND
  CAPITAL RESOURCES</b></font></p>
<p><font face="serif" size="2"><b>Sources of Liquidity</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents&#146; policy is to maintain a combination of medium- and long-term capital market borrowings and committed bank facilities to ensure that it has sufficient financial resources to  meet its medium-term funding requirements. At September 30, 2002 gross debt (including currency swaps) amounted to &pound;3,632 million, comprising &pound;1,953 million of US&nbsp;dollar borrowings, &pound;532  million of sterling borrowings, &pound;811&nbsp;million of euro borrowings, &pound;215 million of Hong Kong dollar borrowings and the remainder denominated in a variety of other currencies (after the effect of  currency swaps).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowing requirements at September 30, 2002 were met through sterling debentures and other bonds denominated in sterling, US dollar or euro. Short-term and medium-term  borrowing requirements are met from drawing under committed bank facilities, commercial paper programs and a medium-term note facility. At September 30, 2002, committed bank facilities  amounted to &pound;1,628 million and uncommitted facilities to &pound;155&nbsp;million; of these total facilities, only &pound;750 million was utilized.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2002 the Group continued to make use of currency swaps to maintain the Group&#146;s policy of hedging foreign currency denominated assets and income streams.</font></p>
<p></p>
<p></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group continues to comply with all of the financial covenants in its loan documentation, none of which represents a material restriction on funding or investment policy in the foreseeable  future.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group also held short-term deposits and investments (including currency swaps) at September 30, 2002 amounting to &pound;2,455 million. Credit risk on treasury transactions is minimised by  operating a policy on investment of surplus funds that generally restricts counterparties to those with an A credit rating or better, or those providing adequate security. Limits are also set with  individual counterparties. Most of the Group&#146;s surplus funds are held in the United Kingdom or United States and there are no material funds where repatriation is restricted as a result of foreign  exchange regulations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net debt at September 30, 2002 was &pound;1,177 million and gearing (net debt expressed as a percentage of shareholders&#146; equity) was 22%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents believes that the requirements of its existing business and future investment can be met from cash generated internally, disposal of assets and businesses and external finance  expected to be available to it.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, &pound;848 million of total borrowings (excluding currency swaps), were due for repayment within one year, &pound;14 million was due for repayment between one and two years,  &pound;84 million between two&nbsp;and&nbsp;five&nbsp;years and &pound;533 million was due for repayment after five years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 5, 2002 the Group announced a tender offer for the repurchase of all outstanding medium-term notes. This offer was accepted by the holders of all the &pound;10 million Floating Rate  Notes due 2004, all the &#128;25 million 4.52% Notes due 2006 and 92.76% of the principal amount of the &pound;250 million 5.75% Notes due 2007. Accordingly, all the 2004 and 2006 Notes and 92.76% of  the 2007 Notes were repurchased on January 28, 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a meeting of the holders of the &pound;250 million 10 3/8% Debenture Stock 2016 (the &#147;Stock&#148;) convened on January 14, 2003, a resolution was passed approving the insertion of an option into  the terms and conditions of the Stock requiring the Company to redeem the Stock, no later than May 31, 2003. This enables the Company to redeem the Stock at a price corresponding to a yield of  100 basis points over the yield of UK Treasury Stock 8% due 2015. The Company gave notice to Stockholders on February 11, 2003 that it will redeem all of the Stock on February 27, 2003. The  premium on redemption is currently estimated at &pound;122 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 3, 2003, Six Continents signed a new bank facility agreement with Barclays Capital, HSBC Bank plc, J.P. Morgan plc, Salomon Brothers International Limited and The Royal  Bank of Scotland plc acting as joint arrangers (the &#147;Arrangers&#148;) and HSBC Bank plc as agent in respect of a 364-day &pound;3,000 million revolving credit facility with a term-out option (&#147;Bridge Facility  Agreement&#148;). The Bridge Facility Agreement is expected to cover the short time period between February 13, 2003, (the date on which the balance of the current Six Continents&#146; $3,000 million  syndicated loan facility matured) and the date of completion of the Separation when it is expected to be canceled and prepaid.</font></p>
<p><font face="serif" size="2"><b>Exchange and Interest Rate Risk, and Financial Instruments</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury policy is to manage financial risks that arise in relation to underlying business needs. The activities of the treasury function are carried out in accordance with Board approved  policies and are subject to regular audit. The treasury function does not operate as a profit center. Treasury activities include the use of spot and forward foreign exchange instruments, currency  options, currency swaps, interest rate swaps and options, and forward rate agreements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Movements in foreign currency exchange rates, particularly in the US dollar and the euro, can affect the Group&#146;s reported net income, net assets, gearing (net debt expressed as a percentage of  shareholders&#146; funds) and interest cover. To hedge this translation exposure as far as is reasonably practical, borrowings are taken out in foreign currencies (either directly or via currency swaps),  which broadly match those in which the Group&#146;s major net assets are denominated. The interest on these borrowings hedges foreign currency denominated income streams. During fiscal 2002, the  interest on US dollar borrowings hedged around 73% of the profit generated in US dollars, while interest on euro borrowings hedged around 85% of profit generated in euro and related currencies.  During 2002, the US dollar was on average 3% weaker than in 2001 by comparison with sterling,</font></p>
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<p><font face="serif" size="2">while the euro was 1% stronger. The impact of the US dollar exchange rate movement was to decrease operating profit by &pound;3 million offset  by a reduction of &pound;2 million in the interest charge.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange transaction exposure is managed by the forward purchase or sale of foreign currencies or the use of currency options. Most significant exposures of the Group are in  currencies that are freely convertible.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate exposure is managed within parameters that stipulate that fixed rate borrowings should normally account for no less than 25%, and no more than 75%, of net borrowings for each  major currency. This is achieved through the use of fixed rate debt, interest rate swaps and options (such as caps) and forward rate agreements. At September 30, 2002, 34% of borrowings were at  fixed rates and 66% were at variable rates. Based on the year-end net debt position and given the underlying maturity profile of investments, borrowings and hedging instruments at that date, a one  percentage point rise in US dollar interest rates or a similar rise in euro interest rates, would increase the net interest charge by approximately &pound;8 million and &pound;5 million, respectively. A similar  movement in sterling rates would have the opposite effect, reducing the net interest charge by approximately &pound;14&nbsp;million.</font></p>
<p><font face="serif" size="2"><b>Commitments Under Operating Leases</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the Group had commitments under noncancelable operating leases as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>September 30,<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due within one year</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due between:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">one to two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">two to three years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">three to four years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">four to five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">thereafter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,569</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,010</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Performance Guarantees</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. It is the Company&#146;s view that, other than to the extent that liabilities  have been provided for in the financial statements, such guarantees are not expected to result in material financial loss to the Group.</font></p>
<p><font face="serif" size="2"><b>Material Commitments for Capital Expenditure</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2002, Six Continents had committed contractual capital expenditure of &pound;314 million; of this amount, &pound;281 million related to SCH and Soft Drinks and &pound;33 million to  SCR. Contracts for expenditure on fixed assets are not authorized by the directors on an annual basis, as divisional capital expenditure is controlled by cash flow budgets. Authorization of major  projects occurs shortly before contracts are placed.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The current plans include SCH&#146;s intention to invest approximately &pound;450 million net capital expenditure in fiscal 2003. This level of capital expenditure is reviewed regularly during the year  and may be increased or decreased in the light of prevailing economic and market conditions and other financial considerations. Individual asset capital plans will also be reviewed to assess the  appropriateness of the projects and their timing. It is expected that the rate of new capital commitment for SCH will be at a lower rate than in recent years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total capital invested by the Group in fiscal 2002 and 2001 was &pound;686 million and &pound;1,728 million, respectively.</font></p>
<p><font face="serif" size="2"><b>Pension Plan Commitments</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the Separation, M and B will become the sponsoring employer for the Six Continents Pension Plan and the Six Continents Executive Pension Plan (the &#147;Plans&#148;). Subject to  completion of the Separation,</font></p>
<p></p>
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<p><font face="serif" size="2">approximately 30% of the assets and liabilities of these Plans will be transferred to the new InterContinental PLC and Britvic Group plans  with effect from April&nbsp;1, 2003. Following April 1, 2003, M and B will continue to be exposed to the remaining funding risks in relation to  the defined benefit sections of the Plans and the InterContinental Group will be exposed to the funding risks in relation to the defined  benefit sections of the new InterContinental PLC and Britvic Group plans. Such risks are as explained in &#147;Item 3. Key Information &#150; Risk  Factors&#148;.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both of these approved schemes were last formally valued as at March 31, 2002, but there have been substantial changes in stock market performance since then. Informal figures determined  by the schemes&#146; actuary as at December 31, 2002, showed the staff scheme&#146;s and executive scheme&#146;s defined benefits respectively to be funded at 116% (i.e. &pound;108 million surplus) and 112% (i.e. &pound;28  million surplus) on the statutory minimum funding requirement and 83% (i.e. &pound;163 million deficit) and 85% (i.e. &pound;45 million deficit) on an ongoing basis. The actuary has recommended, in relation to  the staff scheme defined benefits, that for future service accrual, from October 1, 2002 employers contribute at a rate of 11%. The corresponding recommended percentage in relation to the executive  scheme is 27.1%. These rates have been implemented from October 1, 2002. In late September 2002, Six Continents decided to make additional c
ontributions to the Plans of &pound;60 million of which &pound;15  million was paid prior to the end of September 2002. Future funding requirements will be determined on a triennial basis following actuarial valuations.</font></p>
<p></p>
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<p align=center><font face="serif" size="2"><b>TREND INFORMATION</b></font></p>
<p><font face="serif" size="2"><b>Six Continents Hotels</b></font></p>
<p><font face="serif" size="2"><i>Trading</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH has seen encouraging revenue recovery in the first quarter of fiscal 2003, against weak prior year comparables, and many of its brands have again outperformed their respective markets.  This reflects the benefits of SCH&#146;s refurbishment programs and the decision to increase investment in sales, marketing and technology. However, profits were substantially lower due to the planned  cost increases, which weighed heavily in the first quarter of fiscal 2003, the loss of profit from hotels in renovation and the fact that the revenue growth was largely driven by occupancy. SCH expects  these costs to diminish as fiscal year 2003 progresses and benefits to arise from the return of the InterContinental Le&nbsp;Grand Hotel Paris in the second half of fiscal 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In all regions RevPAR performed better in the first quarter of fiscal 2003 than the same period in the prior year. However, RevPAR is below the same period two years ago.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Americas, SCH&#146;s newly renovated InterContinental hotels continued to outperform in aggregate the markets in the key cities in which they operate. The owned Americas  InterContinental RevPAR is up 20.8% in the first quarter to December 31, 2002. Crowne Plaza had a creditable performance in the first quarter outperforming its market and showing a RevPAR  increase of 5.9%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the same period, SCH&#146;s mid-scale franchise businesses performed very well despite the ongoing difficult market conditions, with Holiday Inn Express continuing to outperform its relative  market with RevPAR up 3.5% and Holiday Inn performing in line with its relative market with RevPAR up 2.3%. In operating profit terms the Americas region is marginally up on fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In EMEA, underlying trading in SCH&#146;s O&amp;L upscale hotels remains depressed due to the high dependency on US guests. In the first quarter of fiscal 2003, the InterContinental Le&nbsp;Grand  Hotel Paris was closed against a period in which it was open in fiscal 2002. The hotel is expected to reopen in Spring 2003. RevPAR for owned and leased InterContinental and Crowne Plaza hotels  was up 12.8% and 2.0%, respectively, in the first quarter of fiscal 2003 benefiting from the increase in marketing activity.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holiday Inn UK, after adjusting for rooms out for renovation, has continued to outperform its relative market, also having benefited from increased revenue investment. As a result, across the  EMEA region as a whole, the aggregate of specific cost increases, and the loss of profit from hotels in refurbishment has meant that profits are substantially down on fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Asia Pacific, the InterContinental Hong Kong has had a very strong performance, benefiting from an increase in sales and marketing, with the result that profits for the region as a whole  were well ahead of fiscal 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCH has planned investment in marketing and IT expenditure of $30&nbsp;million for fiscal 2003. Of this amount some $13&nbsp;million has been spent in the first quarter of 2003 as planned, with a  consequent increase in central costs. Dividends received from Felcor were down $4&nbsp;million.</font></p>
<p><font face="serif" size="2"><i>Outlook</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Americas and EMEA continued downward pressure on corporate profitability, together with the increasing climate of uncertainty as a result of slowing economic growth and the  ongoing threat of war, continue to affect the prospects for SCH&#146;s business.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Against this background, SCH is continuing to drive RevPAR, particularly in its refurbished hotels. At the same time SCH is renewing its focus on the cost base, working on the assumption  that the trading environment will remain difficult.</font></p>
<p><font face="serif" size="2"><b>Soft Drinks</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turnover in the Soft Drinks business rose by over 7% in the first quarter of fiscal 2003. The Soft Drinks business&#146; leading brands have performed well, with Pepsi and Robinsons in particular  having good first quarters</font></p>
<p></p>
<p align=center><font face="serif" size="2">75</font></p>
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<p><font face="serif" size="2">during which both brands grew market share. Tight business controls have led to strong profit growth over the first quarter of fiscal 2002.</font></p>
<p><font face="serif" size="2"><b>Six Continents Retail</b></font></p>
<p><font face="serif" size="2"><i>Trading</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In SCR, total sales were 1% ahead of the same period in fiscal 2002 with some improvement since mid December 2002. SCR continues to see weaker trading in greater London and on the  high street (main street). However, sales generated in residential areas outside London, accounting for 60% of SCR&#146;s business, continue to be more resilient. Actions have been taken to enhance staff  productivity further and to reduce support function costs to mitigate increases in regulatory and pension costs (see below).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high street and greater London markets saw a significant slowdown in the last quarter of 2002, and trading conditions have remained  difficult in those areas. However, there has been  more resilient trading in the suburban estate, particularly from food sales.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total sales were up 1% with food sales ahead by 3% and drinks sales marginally down. Uninvested like for like sales in the eight weeks from November 23, 2003 were down 3.3%, an  improvement on the previous eight weeks, resulting in uninvested like for like sales in the 16 weeks to January 18, 2003, down 3.9%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the year to date, food and drink gross margin percentages have been held against last year. However, following successful trials of some controlled promotional activities to generate  incremental sales, SCR plans to reinvest around one percentage point of gross margin in the balance of the year through these and further promotional activities.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SCR continues to drive benefits from its scale, with gains in staff productivity in December 2002 and January 2003 running at 5% over the same period in fiscal 2002. SCR is also driving  further purchasing benefits. In addition, as a result of actions already taken, SCR is confident of delivering &pound;10&nbsp;million of annualized central cost reductions, of which approximately &pound;5&nbsp;million will  be realized in the second half of fiscal 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory driven costs are expected to increase by &pound;9&nbsp;million this year and there is an additional increase of &pound;7&nbsp;million in pension costs.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With the continuing strength in property prices, SCR is taking advantage of specific value-enhancing disposal opportunities, largely for alternative use. These amount to &pound;16&nbsp;million in the  year to date and are ahead of schedule, against a forecast of at least &pound;25&nbsp;million for fiscal 2003.</font></p>
<p><font face="serif" size="2"><i>Outlook</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While SCR is not immune to any overall slowdown in UK consumer expenditure, it expects the recent trends to continue for the balance of the fiscal year. With a focus on the residential areas  and value for money food, coupled with the increasing impact of cost reductions and rising staff productivity, SCR expects to deliver a resilient performance relative to a slowing economy for the rest  of fiscal 2003.</font></p>
<p></p>
<p align=center><font face="serif" size="2">76</font></p>
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<p><font face="serif" size="2"><b>ITEM 6.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</b></font></p>
<p align=center><font face="serif" size="2"><b>DIRECTORS AND SENIOR MANAGEMENT</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall strategic direction of Six Continents is provided by the board of directors, comprising executive and non-executive directors, and the Strategy Director who is not a main board  director.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The directors and officers of Six Continents during the year ended September 30, 2002 were:</font></p>
<p><font face="serif" size="2"><b>Directors</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Name</b></font></div></td>
    <td colspan=2 width="30%" valign=bottom><font face="serif" size="1"><b>Title</b></font></td>
    <td align=center valign=bottom><font face="serif" size="1"><b>Initially<br>
      appointed<br>
      to the board</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Date
      of next<br>
      reappointment<br>
      by<br>
      shareholders</b> (6)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><hr align="left" width="30" size="1" noshade></td>
    <td align=center valign=bottom><hr align="left" width="25" size="1" noshade></td>
    <td colspan="2"><hr align="right" width="105" size="1" noshade></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Roger
        Carr (1) (2)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">1996</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim
        Clarke (2)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director and Chief
      Executive</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1996</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Robert
        C. Larson (1)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1996</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Geoffrey Mulcahy (1) (3)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard
        North</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director and Group
      Finance Director;</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2004</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">CEO of Six Continents
      Hotels;</font><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Chairman of Britvic
      Soft Drinks</font><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas
        R. Oliver (4)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director; Chairman
      of Six Continents Hotels</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Ian Prosser</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director and Chairman</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1978</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2004</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bryan
        Sanderson (1) (2)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2001</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Howard Stringer (1) (5)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2002</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Officers</b></font></div></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="2">&nbsp;</font><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Name
        </b></font></div></td>
    <td colspan="2"><font face="serif" size="1"><b>Title</b></font></td>
    <td align="center"><font face="serif" size="1">&nbsp;<b>Initially<br>
      appointed</b></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><hr align="left" width="30" size="1" noshade></td>
    <td colspan="2" valign=bottom><hr align="left" width="25" size="1" noshade></td>
    <td align=right valign=bottom><hr align="left" size="1" noshade></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Karim
        Naffah (2)</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Strategy Director</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard
        Winter</font></div></td>
    <td colspan="2" valign=bottom><font face="serif" size="2">Secretary and General
      Counsel</font><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">Non-executive director.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(2)</font></td>
    <td><font face="serif" size="2">Retiring on Separation.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(3)</font></td>
    <td><font face="serif" size="2">Retired on February 13, 2003.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(4)</font></td>
    <td><font face="serif" size="2">Service contract expires March 31, 2003.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(5)</font></td>
    <td><font face="serif" size="2">Appointed on May 22, 2002.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(6)</font></td>
    <td><font face="serif" size="2">The proposed Separation Transaction is expected to occur prior to the date of next reappointment. The anticipated Separation would cause these dates to change. Upon completion of the Separation Transaction, Six Continents PLC will be a subsidiary of the new holding company, InterContinental Hotels Group PLC, which initially is expected to have the following executive and non-executive directors: Richard Hartman, Ralph Kugler, Robert C. Larson, Richard North, Stevan Porter, David Prosser, Sir Ian Prosser, Richard Solomons, Sir Howard Stringer and David Webster.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><i>Directors and officers</i></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sir Ian Prosser, Chairman, age 59, joined Six Continents in 1969 and held various appointments in finance and planning prior to his appointment as Director of Finance and Planning in 1978.  He was appointed Group Managing Director in 1984, and became Chairman and Chief Executive in 1987, relinquishing the role of Chief Executive in 2000. He is non-executive Deputy Chairman of  BP p.l.c. and a non-executive director of Glaxo SmithKline plc. He is also a member of the Confederation of British Industry President&#146;s Committee and Chairman of the Executive Committee of the  World Travel &amp; Tourism Council.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roger Carr, senior independent non-executive director, age 56, was appointed to the board in 1996. He is a non-executive director of Centrica PLC and non-executive Deputy Chairman of  Cadbury Schweppes PLC. He is also a senior adviser to Kohlberg Kravis Roberts Co. Ltd. and a member of the Industrial Development Advisory Board.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">77</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tim Clarke, Chief Executive, age 45, joined Six Continents in 1990, was appointed to the board in 1996 and became Chief Executive in 2000, having previously been Chief Executive of Six  Continents Retail. He is a director of the British Beer and Pubs Association and a non-executive director of Debenhams plc.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert C. Larson, non-executive director, age 68, was appointed to the board in 1996. A US citizen, he is a Managing Director of Lazard Fr&egrave;res &amp; Co, LLC and Chairman of Lazard Fr&egrave;res  Real Estate Investors, LLC.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sir Geoffrey Mulcahy, non-executive director, age 61, was appointed to the board in 1989.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard North, Group Finance Director, age 53, joined the Group and was appointed to the board in 1994 as Group Finance Director. He is responsible for finance, pensions, tax, treasury and  corporate finance (M&amp;A) activity and is Chairman of Britvic Soft Drinks. He is also a non-executive director of Logica CMG plc and FelCor Lodging Trust Inc.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thomas R. Oliver, age 61, is Chairman of Six Continents Hotels. A US citizen, he joined the Group in 1997 and was appointed to the board in 1998. He is also a non-executive director of  Interface Inc.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bryan Sanderson, non-executive director, age 62, was appointed to the board in 2001. He is Chairman of BUPA, Sunderland PLC and the Learning and Skills Council and a non-executive  director of Standard Chartered PLC.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sir Howard Stringer, non-executive director, age 60, was appointed to the board on May&nbsp;22,&nbsp;2002. Of US and British nationality, he is a director of the Sony Corporation and Chairman and  Chief Executive Officer of Sony Corporation of America.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karim Naffah, Strategy Director, age 39, joined the Group in 1991 as Strategic Planning Manager, becoming its Director of Strategic Planning in 1992, and in 1998 he assumed additional  responsibilities for IT and property. In 2000, he was appointed to the Strategic Business Committee. He is responsible for Group strategy, Group IT and property development.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard Winter, Group Company Secretary and General Counsel, age 53, joined Six Continents in 1994 as head of Group Legal and has been Company Secretary and General Counsel since  2000. He&nbsp;is responsible for the secretariat, Group assurance, risk management, legal matters and corporate governance issues.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p78a"></a>COMPENSATION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2002, the aggregate compensation (including pension contributions, bonus and awards under the long-term incentive plans) of the directors and officers of the Company was  &pound;4,508,000. The aggregate amount set aside or accrued by the Company in fiscal 2002 to provide pension retirement or similar benefits for those individuals was &pound;394,000. An amount of &pound;677,000  was charged in fiscal 2002 in respect of bonuses payable to them under performance related cash bonus schemes and long-term incentive plans.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note 4 of Notes to the Financial Statements sets out the aggregate compensation of individual directors. The following are details of the Company&#146;s principal option schemes and the profit  share scheme.</font></p>
<p><font face="serif" size="2"><b>Executive Share Option Scheme</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Six Continents Executive Share Option Scheme 1995 (the &#147;New Scheme&#148;) introduced in 1995, succeeded the Six Continents Executive Share Option Scheme (the &#147;Old Scheme&#148;). Under  the terms of the New Scheme, the Remuneration Committee, consisting solely of non-executive directors, may select employees, including executive directors, of the Group, for the grant of options  to acquire ordinary shares in the Company. The option price will not be less than the market value of an ordinary share, or the nominal value if higher. The market value will be the quoted price on  the business day preceding the date of grant, or the average of the middle market quoted prices on the three consecutive dealing days immediately preceding the date of grant or such other day as the  Inland Revenue may agree. The exercise of options under the New Scheme is subject to the achievement of a performance condition. The International Schedule to the New S
cheme extends it to  executives outside the United Kingdom. As of February 10, 2003, 12,638,404 ordinary shares were subject to options under the New Scheme at subscription prices between 505.00p and 1014.50p,  exercisable on dates up to the year&nbsp;2012.</font></p>
<p></p>
<p align=center><font face="serif" size="2">78</font></p>
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<p><font face="serif" size="2">As of February 10, 2003, 10,410,300 ordinary shares were subject to options under the International Schedule to the New Scheme at  subscription prices between 505.00p and 1014.50p, exercisable on dates up to the year 2012. As of February 10, 2003, 100,600 ordinary  shares were subject to options under the Old Scheme at subscription prices of between 520.00p and 584.00p, exercisable on dates up to the  year 2004. No further options may be granted under the Old Scheme.</font></p>
<p><font face="serif" size="2"><b>Special Deferred Incentive Plan</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Six Continents Special Deferred Incentive Plan (the &#147;SDIP&#148;) enables eligible Six Continents employees to receive all or part of their bonus in the form of Six Continents ordinary shares  after the end of a specified period (which is typically one year) together with, in certain cases, a matching grant of free shares. Participation in the SDIP is at the discretion of the directors of Six  Continents. The number of shares is calculated by dividing a specific percentage of the participant&#146;s salary by the average share price for a period of days prior to the date on which the shares are  granted. As of February 10, 2003, 416,103 ordinary shares were conditionally granted under the plan.</font></p>
<p><font face="serif" size="2"><b>Sharesave Scheme</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Six Continents Sharesave Scheme 2002 (the &#147;2002 Scheme&#148;) was introduced in 2002 and succeeded the Six Continents Employee Savings Share Scheme 1992 (the &#147;1992 Scheme&#148;). The  2002 Scheme is available to all employees (including executive directors) employed by participating Group companies provided they have been employed for at least one year. The 2002 Scheme  provides for the grant of options to subscribe for ordinary shares at the higher of the nominal value and not less than 80% of the average of the middle market quotations of the ordinary shares on the  three dealing days preceding the date of invitation. As of February 10, 2003, 1,709,958&nbsp;ordinary shares were subject to options under the 2002 Scheme at a subscription price of 600.00p exercisable  up to the year 2007. As of February 10, 2003, 2,642,174 ordinary shares were subject to options under the 1992 Scheme at subscription prices of between 470.00p and 886.00

p, exercisable on dates  up to the year&nbsp;2008. No further options may be granted under the 1992 Scheme.</font></p>
<p><font face="serif" size="2"><b>Employee Profit Share Scheme</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employee Profit Share Scheme (the &#147;UK Profit Scheme&#148;) is available to all UK employees (including executive directors) employed by participating Group companies, provided they  have at least three years continuous service. The directors have discretion to offer participation in the UK Profit Scheme to non-UK employees. The board may elect to allocate a percentage of profits  before tax to the UK Profit Scheme. Any such profits so allocated are used to purchase ordinary shares, which are then divided among participants in proportion to their earnings. As of February 10,  2003, 3,532,891 ordinary shares were held by the Trustees under the UK Profit Scheme on behalf of participants. The UK Government has decided to withdraw Profit Share Schemes and no  allocations of profit under the UK Profit Scheme will be possible after 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February 10, 2003, 5,464 ordinary shares were held by the Trustees of the Irish Profit Sharing Scheme (the &#147;Irish Profit Scheme&#148;) on behalf of participants. Following the disposal of  Bass Brewers in August 2000, the Group has no employees who are eligible to participate in the Irish Profit Scheme and no further allocations of profit will be made. The shares will be released from  Trust on February 21, 2003.</font></p>
<p><font face="serif" size="2"><b>Options and ordinary shares held by directors</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Details of the directors&#146; interests in the Company&#146;s shares are set out below and in Note 4 of Notes to the Financial Statements.</font></p>
<p></p>
<p align=center><font face="serif" size="2">79</font></p>
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<p align=center><font face="serif" size="2"><b>BOARD PRACTICES</b></font></p>
<p><font face="serif" size="2"><b>Service Agreements</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive directors have service agreements with the Company. In the cases of Richard North,  Thomas R. Oliver and Sir Ian Prosser, the service agreements require two years&#146; notice of  termination, subject to retirement at age 60 for Richard North and Sir Ian Prosser, and 62 in the case of Thomas R. Oliver. Tim Clarke has a service agreement which requires one year&#146;s notice of  termination, subject to retirement at age 60. See&nbsp;Note&nbsp;4 of Notes to the Financial Statements &#147;Staff Costs &#151; Contracts of service &#151; Policy&#148;.</font></p>
<p><font face="serif" size="2"><b>Payments on Termination</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon retirement, and under certain other specified circumstances on termination of his employment, a director will become eligible to receive a pension. See Note 4 of Notes to the Financial  Statements for details of directors&#146; pension entitlements at September 30, 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With the move toward
  one year contracts, the Remuneration Committee has decided that termination
  payments are not required to be specified in directors&#146; service agreements,
  except that in circumstances where a director&#146;s employment is terminated
  within 12 months following a change of control of the Company, the director
  would be entitled to compensation up to a sum equivalent to approximately 21
  months&#146; remuneration and 24 months&#146; pension contribution. These provisions
  have been waived in respect of the Separation. Upon the proposed Separation,
  no provisions for compensation for termination following change of control will
  be included in the current directors&#146; contracts.</font></p>
  <p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an agreement dated February 12, 2003, Thomas R. Oliver will cease
  to be a director of Six Continents with effect from March 31, 2003, and will
  receive upon termination a discretionary performance bonus of up to $650,000
  based on personal perf ormance and satisfaction of personal objectives. This
  bonus is in substitution for, and not in addition to, his annual performance
  bonus.</font></p>
<p><font face="serif" size="2"><b>Audit Committee</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee, chaired by the senior independent director, Roger Carr, consists of all the  non-executive directors, Roger Carr, Robert C. Larson, Bryan Sanderson and Sir Howard  Stringer and meets at least three times a year. It assists the board in observing its responsibility for ensuring that the Group&#146;s financial systems provide accurate and up-to-date information on its  financial position and that the Group&#146;s published financial statements represent a true and fair reflection of this position. It also assists the board in ensuring that appropriate accounting policies,  internal financial controls and compliance procedures are in place. The auditors attend its meetings, as does the Head of Group Assurance, who has direct access to the Chairman of the Committee.</font></p>
<p><font face="serif" size="2"><b>Remuneration Committee</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Remuneration Committee, chaired by the senior independent director, Roger Carr, consists of all the non-executive directors, Roger Carr, Robert C. Larson, Bryan Sanderson and Sir  Howard Stringer and meets, on average, five times a year. The Head of the Group Human Resources function has direct access to the Chairman of the Committee. The Committee advises the board  on overall remuneration policy. The Committee also determines, on behalf of the board, and with the benefit of advice from external consultants and the head of the Group Human Resources  function, the remuneration packages of the executive directors. The remuneration of the non-executive directors is determined by the board.</font></p>
<p><font face="serif" size="2"><b>Strategic Business Committee</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Strategic Business Committee, chaired by the Chairman of the Company, consists of the executive directors and the Strategy Director and usually meets at least every three weeks. Its role  is to consider and manage the important strategic and business issues facing the Group; it is authorized to approve capital and revenue investment within levels agreed by the board.</font></p>
<p></p>
<p align=center><font face="serif" size="2">80</font></p>
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<p align=center><font face="serif" size="2"><b>EMPLOYEES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group employed an average of 69,953 people worldwide in fiscal 2002. Of these, approximately 61% were employed on a full-time basis and 39% were employed on a part-time basis.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below analyzes the distribution of the average number of employees for the last three fiscal years by division and by geographic region.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>United<br> Kingdom</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Rest of Europe,<br> the Middle East<br> and Africa</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>United States</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Rest of World</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>2002:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,670</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,622</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,947</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28,183</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36,703</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38,740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51,147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,659</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,947</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">69,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>2001:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,445</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35,514</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,610</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,610</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39,479</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,794</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">221</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">244</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51,755</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,038</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>2000:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,225</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,377</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13,935</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,769</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29,306</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46,583</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,428</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48,011</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">215</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52,740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,851</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13,936</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,769</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">80,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bass Brewers</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,265</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56,895</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,961</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13,936</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,769</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85,561</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in employee numbers in Six Continents Hotels in fiscal 2002 was primarily due to changes in the status of Bristol employees. The decrease in employee numbers in Retail in  fiscal 2002 was primarily due to the sale of pubs.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With the disposal of Bass Brewers, less than 6% of the Group&#146;s UK employees are covered by collective bargaining agreements with trade unions, under which wages are negotiated annually,  or procedural agreements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continual attention is paid to the external market in order to ensure that terms of employment are appropriate. Group companies believe that they will be able to continue to conduct their  relationships with trade unions and employees in a satisfactory manner.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under EU law, many employees of Group companies are now covered by the Working Time Regulations which came into force in the United Kingdom on October&nbsp;1, 1998. These  regulations implemented the European Working Time Directive and parts of the Young Workers Directive, and lay down rights and protections for employees in areas such as maximum working  hours, minimum rest time, minimum days off and paid leave.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the United Kingdom there is in place a national minimum wage under the National Minimum Wage Act. The minimum wage was &pound;4.20 per hour at October&nbsp;1, 2002. This particularly  impacts businesses in the hospitality and retailing sectors. Compliance with the National Minimum Wage Act is being monitored by the Low Pay Commission, an independent statutory body  established by the UK Government.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">81</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p82"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SHARE OWNERSHIP</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The interests of the directors and officers in the shares of the Company at February 10, 2003 were as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Directors</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Ordinary<br> shares<br> of 28p</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Roger Carr</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">120,763</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Robert C. Larson</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Geoffrey Mulcahy</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">158,568</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas R. Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">68,105</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">276,238</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bryan Sanderson</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Howard Stringer</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Officers</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Karim Naffah</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19,784</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard Winter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,713</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above shareholdings are all beneficial interests and include shares held on behalf of executive directors by the Trustees of the Six Continents Employee Profit Share Scheme and of the  Company&#146;s ESOP. None of the directors has a beneficial interest in the shares of any subsidiary, nor in the debenture stocks issued by the Company or any subsidiary.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 10, 2003, the executive directors&#146; technical interest in unallocated Six Continents PLC ordinary shares held by the Trustees of the ESOP was 88,925 shares.</font></p>
<p><font face="serif" size="2"><b><a name="p82a"></a>ITEM 7.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>MAJOR
  SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</b></font></p>
<p align=center><font face="serif" size="2"><b><a name="p82b"></a>MAJOR SHAREHOLDERS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As far as is known to management, Six Continents is not directly or indirectly owned or controlled by another corporation or by any government. Under the provisions of Section 198 of the  Companies Act, Six&nbsp;Continents has been advised of an interest held by Legal &amp; General Plc in 24,176,813 ordinary shares, being 3.1% of the Company&#146;s issued ordinary share capital. Six  Continents does not know of any arrangements the operation of which may result in a change in its control.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p82c"></a>RELATED PARTY
  TRANSACTIONS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than as here described, there have been no material transactions during the last fiscal year to which any director or officer, or 10% shareholder, or any relative or spouse thereof, was a  party. Richard North, as a Six Continents representative, is a non-executive director of FelCor, a US based franchisee of some of the Company&#146;s hotel brands. There is no outstanding indebtedness to  the Group by any director or officer or 10% shareholder. Under the terms of an arrangement reached with Iain Napier, a former director, prior to the sale of Bass Brewers, he is entitled to an annuity  after May 22, 2003. See Note 4 of Notes to the Financial Statements. Pursuant to an agreement dated February 12, 2003 Thomas R. Oliver will cease to be a director of Six Continents with effect  from March 31, 2003, but will subsequently provide services to SCH under the terms of a consultancy agreement to expire on March 31, 2005. If, by reason of a change of
control, the consultancy  agreement does not commence on April 1, 2003, SCH will pay Thomas R. Oliver a sum of $500,000, and the consultancy agreement will be treated as terminated by mutual agreement. The  consultancy agreement is itself conditional on the Separation being completed by June 30, 2003.</font></p>
<p></p>
<p align=center><font face="serif" size="2">82</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p83"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>ITEM 8.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>FINANCIAL INFORMATION</b></font></p>
<p align=center><font face="serif" size="2"><b>CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION</b></font></p>
<p><font face="serif" size="2"><b>Financial Statements</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Item 18. Financial Statements&#148;.</font></p>
<p><font face="serif" size="2"><b>Legal Proceedings</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group companies have extensive operations in the United Kingdom, as well as internationally, and are involved in a number of legal proceedings incidental to those operations. It is the  Company&#146;s view that the outcome of such proceedings, either individually or in the aggregate, is not likely to have a material effect on the results of the Group&#146;s operations or its financial position.</font></p>
<p><font face="serif" size="2"><b>Dividends</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Item 3. Key Information &#150; Dividends&#148;.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p83a"></a>SIGNIFICANT
  CHANGES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></p>
<p><font face="serif" size="2"><b><a name="p83b"></a>ITEM 9.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>THE
  OFFER AND LISTING</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal trading market for the Company&#146;s ordinary shares is the London Stock Exchange on which they have been traded since the incorporation of Six Continents in 1967. The ordinary  shares are also listed on the New York Stock Exchange trading in the form of ADSs evidenced by ADRs. Each ADS represents one ordinary share. Six Continents has a sponsored ADR facility with  The Bank of New York as Depositary.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables show, for the fiscal periods indicated, the reported high and low middle market quotations (which represent an average of closing bid and ask prices) for the ordinary  shares on the London Stock Exchange, as derived from the Daily Official List of the UK Listing Authority, and the highest and lowest sales prices of the ADSs as reported on the New York Stock  Exchange composite tape.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>&pound; per<br> ordinary share</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>$ per ADS </b>(1)<br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Fiscal ended September 30</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>High</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Low</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>High</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Low</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%">
<hr align="left" width="25%" size="1" noshade>
      </div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1998</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20.06</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.01</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.02</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="serif" size="2"><i>Footnote
      on following page.</i></font></td>
  </tr>
  <tr>
    <td width="3%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">83</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p84"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>&pound;
      per<br>
      ordinary share</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>$
      per ADS </b>(1)<br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Fiscal
        ended September 30</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>High</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Low</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>High</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Low</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%">
        <hr align="left" width="110" size="1" noshade>
      </div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font face="serif" size="2"><b>2001</b></font></td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">First
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2"> 7.60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.06</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.56</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Second
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Third
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.02</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fourth
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2"><b>2002</b></font></td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">First
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.73</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Second
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Third
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fourth
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2"><b>2003</b></font></td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">First
        Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Second
        Quarter (through February&nbsp;10, 2003)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.62</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.68</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=4 align=center valign=bottom><font face="serif" size="1"><b>&pound;
      per<br>
      ordinary share</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=3 align=center valign=bottom><font face="serif" size="1"><b>$
      per ADS</b> (1)<br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td valign="top"><font face="serif" size="1"><b>Month ended<br>
      </b></font> <hr align="left" width="100" size="1" noshade> <font face="serif" size="1"><b>
      <br>
      </b></font></td>
    <td colspan=2 align=center valign=top><font face="serif" size="1"><b>High<br>
      </b></font> <hr size="1" noshade> <font face="serif" size="1"><b> </b></font></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td align=center valign=top><font face="serif" size="1"><b>Low<br>
      </b></font> <hr size="1" noshade> <font face="serif" size="1"><b> </b></font></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td align=center valign=top><font face="serif" size="1"><b>High<br>
      </b></font> <hr size="1" noshade> <font face="serif" size="1"><b> </b></font></td>
    <td valign="top"><font face="serif" size="1">&nbsp;</font></td>
    <td align=center valign=top><font face="serif" size="1"><b>Low<br>
      </b></font> <hr size="1" noshade> <font face="serif" size="1"><b> </b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">August
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.02</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">September
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;6.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;5.41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;9.72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;8.25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">October
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">November
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.08</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">December
        2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.94</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">January
        2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.68</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">February
        2003 (through February&nbsp;10, 2003)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font> <hr align="left" width="100" size="1" noshade></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">Intra day high and low prices.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February&nbsp;10, 2003, 51,093,683 ADSs equivalent to 51,093,683 ordinary shares, or approximately 5% of the total ordinary shares in issue, were outstanding and were held by 3,566  holders.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February&nbsp;10, 2003, there were a total of 108,483 record holders of ordinary shares, of whom 203 had registered addresses in the United States and held a total of 172,469 ordinary  shares (0.01% of the total issued). Since certain ordinary shares are registered in the names of nominees, the number of shareholders of record may not be representative of the number of beneficial  owners.</font></p>
<p></p>
<p align=center><font face="serif" size="2">84</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p85"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>PLAN OF DISTRIBUTION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p85a"></a>SELLING SHAREHOLDERS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p85b"></a>DILUTION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p85c"></a>EXPENSES OF
  THE ISSUE</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p><font face="serif" size="2"><b><a name="p85d"></a>ITEM 10.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ADDITIONAL
  INFORMATION</b></font></p>
<p align=center><font face="serif" size="2"><b><a name="p85e"></a>MEMORANDUM AND
  ARTICLES OF ASSOCIATION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summarizes material rights of holders of the Company&#146;s ordinary shares under the material provisions of the Company&#146;s memorandum and articles of association and English  law. This summary is qualified in its entirety by reference to the Companies Act and the Company&#146;s memorandum and articles of association. Copies of the Company&#146;s memorandum and articles of  association were filed as exhibits to the Company&#146;s Annual Report on Form 20-F for the year ended September 2001.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s shares may be held in certificated or uncertificated form. No holder of the Company&#146;s shares will be required to make additional contributions of capital in respect of the  Company&#146;s shares in the future.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the following description, a &#147;shareholder&#148; is the person registered in the Company&#146;s register of members as the holder of the relevant share.</font></p>
<p><font face="serif" size="2"><b>Principal Objects</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is incorporated under the name Six Continents PLC and is registered in England and Wales with registered number 913450. The fourth clause of the Company&#146;s memorandum  of association provides that its objects include to acquire certain predecessor companies and carry on business as an investment holding company, to carry on business of brewers and distillers,  licensed victuallers, to deal in commodities, to acquire and operate breweries, hotels and restaurants, as well as to carry on any other business which the Company may judge capable of enhancing the  value of the Company&#146;s property or rights. The memorandum grants to the Company a range of corporate capabilities to effect these objects.</font></p>
<p><font face="serif" size="2"><b>Directors</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Company&#146;s articles of association, a director may not vote in respect of any proposal in which he, or any person connected with him, has any material interest other than by virtue of  his interests in securities of, or otherwise in or through, the Company. This is subject to certain exceptions relating to proposals (a) indemnifying him in respect of obligations incurred on behalf of  the Company, (b) indemnifying a third party in respect of obligations of the Company for which the director has assumed responsibility under an indemnity or guarantee, (c) relating to an offer of  securities in which he will be interested as an underwriter, (d) concerning another body corporate in which the director is beneficially interested in less than one percent of the issued shares of any  class of shares of such a body corporate, (e) relating to an employee benefit in which the director will share equally</font></p>
<p></p>
<p align=center><font face="serif" size="2">85</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p86"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2">with other employees and (f) relating to liability insurance that the Company is empowered to purchase for the benefit of directors of the  Company in respect of actions undertaken as directors (or officers) of the Company.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the absence of an independent quorum, the directors are not competent to vote compensation to themselves or any members of their body.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The directors are empowered to exercise all the powers of the Company to borrow money, subject to the limitation that the aggregate amount of all moneys borrowed by the Company and its  subsidiaries shall not exceed an amount equal to one and one half times the Company&#146;s share capital and aggregate reserves, unless sanctioned by an ordinary resolution of the Company.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any director attaining 70 years of age shall retire at the next Annual General Meeting. Such a director may be reappointed but shall retire (and be eligible for reappointment) at the next  Annual General Meeting.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors are not required to hold any shares of the Company by way of qualification.</font></p>
<p><font face="serif" size="2"><b>Rights Attaching to Shares</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under English law, dividends are payable on the Company&#146;s ordinary shares only out of profits available for distribution, as determined in accordance with accounting principles generally  accepted in the United Kingdom and by the Companies Act. Holders of the Company&#146;s ordinary shares are entitled to receive such dividends as may be declared by the shareholders in general  meeting, rateably according to the amounts paid up on such shares, provided that the dividend cannot exceed the amount recommended by the directors.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s board of directors may pay shareholders such interim dividends as appear to them to be justified by the Company&#146;s financial position. If authorized by an ordinary resolution  of the shareholders, the board of directors may also direct payment of a dividend in whole or in part by the distribution of specific assets (and in particular of paid up shares or debentures of any other  company).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any dividend unclaimed after 12 years from the date the dividend was declared, or became due for payment, will be forfeited and will revert to the Company.</font></p>
<p><font face="serif" size="2"><b>Voting Rights</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting at any general meeting of shareholders is by a show of hands unless a poll, which is a written vote, is duly demanded. On a show of hands, every shareholder who is present in person or  by proxy at a general meeting has one vote regardless of the number of shares held. On a poll, every shareholder who is present in person or by proxy has one vote for every 28p in nominal amount of  the shares held by that shareholder. A poll may be demanded by any of the following:</font></p>
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    <td><font face="serif" size="2">the chairman of the meeting;</font></td>
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    <td><font face="serif" size="2">at least five shareholders entitled to vote
      at the meeting;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">any shareholder or shareholders representing
      in the aggregate not less than one-tenth of the total voting rights of all
      shareholders entitled to vote at the meeting; or</font></td>
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    <td><font face="serif" size="2">any shareholder or shareholders holding shares
      conferring a right to vote at the meeting on which there have been paid-up
      sums in the aggregate equal to not less than one-tenth of the total sum
      paid up on all the shares conferring that right.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proxy form will be treated as giving the proxy the authority to demand a poll, or to join others in demanding one.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The necessary quorum for a general meeting is three persons carrying a right to vote upon the business to be transacted, whether present in person or by proxy.</font></p>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matters are transacted at general meetings of the Company by the proposing and passing of resolutions, of which there are three kinds:</font></p>
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    <td><font face="serif" size="2">an ordinary resolution, which includes resolutions
      for the election of directors, the approval of financial statements, the
      cumulative annual payment of dividends, the appointment of auditors, the
      increase of authorized share capital or the grant of authority to allot
      shares;</font></td>
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    <td><font face="serif" size="2">a special resolution, which includes resolutions
      amending the Company&#146;s memorandum and articles of association, disapplying
      statutory pre-emption rights or changing the Company&#146;s name; and</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">an extraordinary resolution, which includes
      resolutions modifying the rights of any class of the Company&#146;s shares
      at a meeting of the holders of such class or relating to certain matters
      concerning the Company&#146;s winding up.</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An ordinary resolution requires the affirmative vote of a majority of the votes of those persons voting at a meeting at which there is a quorum.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special and extraordinary resolutions require the affirmative vote of not less than three-fourths of the persons voting at a meeting at which there is a quorum.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting is entitled to cast the deciding vote in addition to any other vote he may have.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual General Meetings must be convened upon advance written notice of 21 days. Other meetings must be convened upon advance written notice of 21 days for the passing of a special  resolution and 14 days for any other resolution, depending on the nature of the business to be transacted. The days of delivery or receipt of the notice are not included. The notice must specify the  nature of the business to be transacted. The board of directors may if they choose make arrangements for shareholders who are unable to attend the place of the meeting to participate at other places.</font></p>
<p><font face="serif" size="2"><b>Variation of Rights</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time, the Company&#146;s share capital is divided into different classes of shares, the rights attached to any class may be varied, subject to the provisions of the Companies Act, with the  consent in writing of holders of three-fourths in value of the shares of that class or upon the adoption of an extraordinary resolution passed at a separate meeting of the holders of the shares of that  class. At every such separate meeting, all of the provisions of the articles of association relating to proceedings at a general meeting apply, except that the quorum is to be the number of persons  (which must be two or more) who hold or represent by proxy not less than one-third in nominal value of the issued shares of the class.</font></p>
<p><font face="serif" size="2"><b>Rights in a Winding-up</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as the Company&#146;s shareholders have agreed or may otherwise agree, upon the Company&#146;s winding up, the balance of assets available for distribution:</font></p>
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    <td><font face="serif" size="2">after the payment of all creditors including
      certain preferential creditors, whether statutorily preferred creditors
      or normal creditors; and</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td><font face="serif" size="2">subject to any special rights attaching to
      any class of shares;</font></td>
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<p><font face="serif" size="2">is to be distributed among the holders of ordinary shares according to the amounts paid-up on the shares held by them. This distribution is generally to be made in cash. A liquidator may, however,  upon the adoption of an extraordinary resolution of the shareholders, divide among the shareholders the whole or any part of the Company&#146;s assets in kind.</font></p>
<p><font face="serif" size="2"><b>Limitations on Voting and Shareholding</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no limitations imposed by English law or the Company&#146;s memorandum or articles of association on the right of non-residents or foreign persons to hold or vote the Company&#146;s  ordinary shares or ADSs, other than the limitations that would generally apply to all of the Company&#146;s shareholders.</font></p>
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<p align=center><font face="serif" size="2"><b>MATERIAL CONTRACTS</b></font></p>
<p><font face="serif" size="2"><b>Disposal of Bass Brewers</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The disposal agreement for Bass Brewers, including the business and assets of Bass Beers Worldwide, and the Company&#146;s 80% shareholding in Praszke Pivovary, was entered into on June 14,  2000 between the Company and certain of its subsidiaries and Interbrew and certain of its subsidiaries. The transaction completed on August&nbsp;22, 2000. Pursuant to the disposal agreement, certain  subsidiaries of Interbrew acquired Bass Brewers from the Company&#146;s subsidiaries. Both the Company and Interbrew guaranteed certain of their respective subsidiaries&#146; obligations under the disposal  agreement.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consideration for the sale of Bass Brewers was &pound;2,300 million, comprising &pound;1,426 million for the shares and assets and &pound;874 million by way of repayment by Bass Brewers of net intra  group debt owed to the Company (or members of the Group). An adjustment in respect of net assets was agreed on November 3, 2000. This involved a payment of &pound;24 million from Interbrew to Six  Continents. In fiscal 2002 a further payment of &pound;9&nbsp;million was received in respect of the finalization of completion account adjustments.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the disposal agreement, subsidiaries of the Company gave to Interbrew subsidiaries certain warranties and indemnities in relation to the shares and assets that were the subject of the  disposal. In addition, the Company provided an indemnity in relation to the liabilities of Bass Holdings Limited (the holding company of Bass Brewers) arising out of that company having carried on  the business of operation and management of licensed and unlicensed outlets as carried on by Six Continents Retail Limited, and other non-brewing businesses.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agreed that for the period of two years following the completion of the disposal, the Company and its subsidiaries would not engage in certain businesses that compete with the  business of Bass Brewers as carried on as at the date of the disposal agreement.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the disposal agreement, the parties entered into certain ancillary agreements on completion of the disposal which included: a beer supply agreement, where Six Continents  Retail agreed to buy from Bass Brewers a minimum amount of certain products for a term of five years and to ensure that certain Bass Brewers products are available for consumption at a specified  proportion of the Company&#146;s outlets; a soft drink supply agreement under which the Company agreed to sell, or to procure the sale of, soft drinks to Bass Brewers for a term of five years; and  ancillary intellectual property agreements governing the use of the Bass name and certain trademarks following the completion of the disposal.</font></p>
<p><font face="serif" size="2"><b>Bridge Facility Agreement</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 3, 2003, Six Continents signed a new bank facility agreement with the Arrangers and HSBC Bank plc as agent in respect of a 364-day &pound;3,000 million revolving credit facility with  a term-out option. The Bridge Facility Agreement is expected to cover the short time period between February 13, 2003, (the date on which the balance of the current Six Continents&#146; $3,000 million  syndicated loan facility matured) and the date of completion of the Separation when it is expected to be canceled and prepaid.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The interest margin payable on borrowings under the Bridge Facility Agreement is fixed for the period from February 3, 2003 until May 31, 2003 by which time it is anticipated that the  Separation shall have occurred. However, if the Bridge Facility Agreement is still in existence at this time, the margin will be increased from June 1, 2003 for the remainder of the term of the Bridge  Facility Agreement and by a further amount if the term-out option is exercised.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bridge Facility Agreement contains a restriction on Six Continents from making the anticipated &pound;700,000,000 return of capital to its public shareholders unless the Separation has  occurred or the Scheme of Arrangement has become effective.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions have been agreed with the Arrangers which allow them, following consultation with Six&nbsp;Continents and subject to an agreed limit, to increase the interest margin payable on  borrowings under the Bridge Facility Agreement in the event that market conditions do not allow them to successfully syndicate the bank facility.</font></p>
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<p align=center><font face="serif" size="2"><b>EXCHANGE CONTROLS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no restrictions on dividend payments to US citizens.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although there are currently no UK foreign exchange control restrictions on the payment of dividends on the ordinary shares or the ADSs, from time to time English law imposes restrictions  on the payment of dividends to persons resident (or treated as so resident) or governments of (or persons exercising public functions in) certain countries (each of the foregoing, a &#147;Prohibited  Person&#148;).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no restrictions under the articles of association or under English law that limit the right of non-resident or foreign owners to hold or vote the ordinary shares. However, under current  English law, ordinary shares or ADSs may not be owned by a Prohibited Person. In addition, the Company&#146;s articles of association contain certain limitations on the voting and other rights of any  holder of ordinary shares, whose holding may, in the opinion of the directors, result in the loss or failure to secure the reinstatement of any license or franchise from any US governmental agency held  by Holiday Corporation or any subsidiary thereof.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p89a"></a>TAXATION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of material US federal income and UK tax consequences generally applicable to ownership by a beneficial owner of ADSs representing ordinary shares or of  ordinary shares not in ADS form (i) that is resident in the United States and not resident in the United Kingdom for the purposes of the US/UK double taxation convention relating to income and  capital gains (the &#147;Income Tax Convention&#148;), (ii) whose holding is not connected with a permanent establishment or fixed base in the UK through or from which the investor carries on or performs  business activities or personal services, (iii) that is otherwise eligible for benefits under the Income Tax Convention with respect to income and gain from the ordinary shares or ADSs and (iv) that is  a &#147;US Holder&#148;. A &#147;US Holder&#148; is (a) a citizen or resident of the United States, (b) a corporation, or other entity taxable as a corporation, organised under th
e laws of the United States or any State  thereof, (c) an estate the income of which is subject to United States federal income tax without regard to its source or (d) a trust if a court within the United States is able to exercise primary  supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust. The summary is based on current US law  (including the US Internal Revenue Code of 1986, as amended (the &#147;US Internal Revenue Code&#148;), its legislative history, existing and proposed regulations thereunder, published rulings and court  decisions), current UK law and Inland Revenue practice and the Income Tax Convention as of the date of this document and is subject to any changes occurring after that date in US law, UK law or  UK Inland Revenue practice, and in any double taxation convention between the United States and the United Kingdom. In addition, this summary is based in part on representations of the  
Depositary and assumes that each obligation provided for in or otherwise contemplated by the Deposit Agreement and any related agreement will be performed in accordance with its terms. This  summary addresses only the tax position of a US Holder who holds ordinary shares or ADSs as capital assets. This summary does not purport to address all material tax consequences of the  ownership of ordinary shares or ADSs, and does not take into account the specific circumstances of any particular investors (such as tax-exempt entities, life insurance companies, dealers in  securities, traders in securities that elect to mark to market, investors liable for alternative minimum tax, investors that actually or constructively own 10% or more of the voting shares of Six  Continents, investors that hold ordinary shares or ADSs as part of a straddle or a hedging or conversion transaction or investors whose functional currency is not the US dollar), some of which may be  subject to special rules. Holders of ADSs or ordinary s
hares should consult their own tax advisers as to the particular tax consequences to them of ownership of the ADSs or ordinary shares.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of the Income Tax Convention and the US Internal Revenue Code, US Holders of ADSs will be treated as the beneficial owners of the underlying ordinary shares represented  by the ADSs.</font></p>
<p><font face="serif" size="2"><b>Taxation of Dividends</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Income Tax Convention, a US Holder who is a US resident individual or a US corporation (other than a corporation which, alone or together with one or more associated  corporations, controls, directly or indirectly, 10% or more of the voting shares of Six Continents), is in principle (so long as the United Kingdom</font></p>
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<p><font face="serif" size="2">allows a tax credit in respect of dividends to individual UK resident shareholders) entitled to receive from the UK Inland Revenue, in  addition to any dividend paid by Six Continents, an amount equal to the tax credit to which an individual resident in the United Kingdom  would be entitled in respect of such dividend (the &#147;tax credit&#148;) less a notional withholding tax of up to 15% of the sum of the cash  dividend and the associated tax credit (the &#147;gross dividend&#148;). This notional withholding tax may not exceed the amount of the tax credit.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax credit is equal to one-ninth of the dividend paid (or 10% of the gross dividend). As the notional withholding tax under the Income Tax Convention exceeds the tax credit, US Holders  will not be entitled to a refund of the tax credit from the UK Inland Revenue.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the US federal income tax laws and subject to the passive foreign investment company (&#147;PFIC&#148;) rules discussed below, US Holders will include in gross income the sum of the cash  dividend and its associated tax credit, to the extent paid by Six Continents out of its current or accumulated earnings and profits (as determined for United States federal income tax purposes), as  ordinary income when the dividend is received by the US Holder, in the case of ordinary shares, or by the Depositary, in the case of ADSs. The dividend will not be eligible for the dividends-received  deduction generally allowed to US corporations in respect of dividends received from US corporations. The amount of the dividend includible in income of a US Holder will be the US dollar value of  the gross dividend, determined at the spot UK pound/US dollar rate on the date such dividend distribution is includible in the income of the US Holder, regardless of wheth
er the payment is in fact  converted into US dollars at that time. Generally, any gain or loss resulting from currency exchange fluctuations during the period from the date the dividend payment is includible in income to the  date such payment is converted into US dollars will be treated as ordinary income or loss. Such gain or loss will generally be income or loss from sources within the United States for foreign tax  credit limitation purposes. Distributions in excess of current and accumulated earnings and profits, as determined for US federal income tax purposes, will be treated as a return of capital to the extent  of the US Holder&#146;s basis in the ordinary shares or ADSs and thereafter as capital gain.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to certain restrictions and limitations, the UK tax notionally withheld in accordance with the Income Tax Convention will be creditable against the US Holder&#146;s US federal income tax  liability. For US foreign tax credit limitation purposes, the dividend will be income from sources without the United States that is treated as &#147;passive income&#148; (or in the case of certain holders,  &#147;financial services income&#148;).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 24, 2001, the United States of America and the United Kingdom signed a new double taxation convention (the &#147;New Convention&#148;) that, if ratified, would replace the Income Tax  Convention. The New Convention would make a number of important changes. In particular, under the New Convention, US Holders would no longer be entitled to claim the tax credit from the UK  Inland Revenue, and there would no longer be a notional withholding tax. Thus, as the United Kingdom does not otherwise impose withholding tax on dividends paid to US Holders, US Holders  would include in income only the dividends received and would not have the benefit of any United States foreign tax credits with respect to such dividends. The New Convention would generally be  effective, in respect of taxes withheld at source, for amounts paid or credited on or after the first day of the second month after the New Convention is ratified. Other provisions of the New  Conv
ention would take effect on certain other dates after ratification. If the New Convention is ratified, the rules of the Income Tax Convention would remain in effect until the effective dates  described above. However, a US Holder would be entitled to elect to have the Income Tax Convention apply in its entirety for a period of twelve months after the effective dates of the New  Convention.</font></p>
<p><font face="serif" size="2"><b>Taxation of Capital Gains</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the PFIC rules discussed below, a US Holder will, upon the sale or exchange of an ADS or an ordinary share, recognise gain or loss for US federal income tax purposes in an amount  equal to the difference between the US dollar value of the amount realised and the US Holder&#146;s tax basis determined in US dollars in the ADS or ordinary share. Such gain or loss generally will be  long-term capital gain or loss if the ADS or ordinary share was held for more than one year and will be income or loss from sources within the United States for foreign tax credit limitation purposes.  The long-term capital gain of a non-corporate US Holder is generally subject to a maximum rate of 20% in respect of property held for more than one year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;US Holders who are not resident or ordinarily resident for tax purposes in the United Kingdom will not be liable for UK tax on capital gains realised on the disposal of their ADSs or ordinary  shares unless such ADSs or</font></p>
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<p><font face="serif" size="2">ordinary shares are used, held or acquired for the purposes of a trade, profession or vocation and at the time the disposal is made such  holder carries on a trade, profession or vocation in the United Kingdom through a branch, agency or permanent establishment (as defined  in the Income Tax Convention), or if such ADSs or ordinary shares are used, held or acquired for the purpose of such branch, agency or  permanent establishment (as defined in the Income Tax Convention).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A US Holder who is an individual may be regarded as UK resident for tax purposes if he is present in the United Kingdom for more than six months in any year. In addition special rules apply  for individual US Holders temporarily non-resident in the United Kingdom.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The surrender of ADSs in exchange for the deposited ordinary shares represented by the surrendered ADSs will not be a taxable event for US federal income tax purposes. For the purposes of  UK capital gains tax, the ADSs and the interest in the underlying shares are treated as two distinct chargeable assets. A surrender of ADSs in exchange for the shares will not result in a change of  ownership of the shares, but will be treated as a disposal of the distinct ADS asset. However, the UK Inland Revenue have indicated that normally there will not be a chargeable gain on such an event.  Accordingly, US Holders should not be required to recognise any gain or loss for purposes of UK tax on chargeable gains upon such surrender.</font></p>
<p><font face="serif" size="2"><b>PFIC Rules</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents believes that the ordinary shares and ADSs should not be treated as stock of a PFIC for United States federal income tax purposes, but this conclusion is an annual factual  determination and thus may be subject to change. If Six Continents were to be treated as a PFIC, unless a US Holder elects to be taxed annually on a mark-to-market basis with respect to the ordinary  shares or ADSs, gain realised on the sale or other disposition of ordinary shares or ADSs would in general not be treated as capital gain. Instead, gain would be treated as if the US Holder had realised  such gain rateably over the holding period for the ordinary shares or ADSs and, to the extent allocated to the first year in which Six Continents was a PFIC and subsequent years, would be taxed at the  highest tax rate in effect for each such year to which the gain was allocated, together with an interest charge in respect of the tax attributable to each such year. In
 addition, similar rules would apply  to any &#147;excess distribution&#148; received on the ordinary shares or ADSs (generally, the excess of any distribution received on the ordinary shares or ADSs during the taxable year over 125% of the  average amount of distributions received during a specified prior period).</font></p>
<p><font face="serif" size="2"><b>Estate and Gift Tax</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UK inheritance tax (&#147;IHT&#148;) is a tax charged at death on the value of an individual&#146;s estate at death. It also applies to certain lifetime transfers (in particular to gifts made within seven years of  death) and to property comprised in a trust or settlement. A domiciliary of the United States need only be concerned about liability for IHT to the extent he is or is deemed to be also a UK domiciliary  (or was a UK domiciliary at the time he created any trust or settlement) or otherwise to the limited extent of his UK property. The current estate and gift tax convention between the United States and  the United Kingdom (the &#147;Estate and Gift Tax Convention&#148;) generally relieves from IHT the transfer of ordinary shares or ADSs where the beneficial owner thereof is domiciled for the purposes of  the Estate and Gift Tax Convention in the United States, and is not a UK national. However, there are various exceptions to this rule. In
 particular, the exemption will not apply where (a) the ADSs or  ordinary shares are part of the business property of a permanent establishment of the individual in the United Kingdom or (b) pertain to a fixed base situated in the United Kingdom of a person  providing independent personal services.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the exceptional case where the ADSs or ordinary shares are subject both to IHT and to US federal gift or estate tax, the Estate and Gift Tax Convention generally provides for tax paid in the  United Kingdom to be credited against tax payable in the United States or for tax paid in the United States to be credited against tax payable in the United Kingdom based on priority rules set forth in  that Convention.</font></p>
<p><font face="serif" size="2"><b>UK Stamp Duty and Stamp Duty Reserve Tax (&#147;SDRT&#148;)</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer of ordinary shares will generally be liable to stamp duty at the rate of 0.5% of the amount or value of the consideration given (rounded up to the nearest &pound;5). An unconditional  agreement to transfer ordinary shares will generally be subject to SDRT at 0.5% of the agreed consideration. However, if within the period of six</font></p>
<p></p>
<p align=center><font face="serif" size="2">91</font></p>
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<p><font face="serif" size="2">years of the date of such agreement becoming unconditional an instrument of transfer is executed pursuant to the agreement and stamp  duty is paid on that instrument, any liability to SDRT will usually be repaid or cancelled. The liability to pay stamp duty or SDRT is  generally satisfied by the purchaser or transferee.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No stamp duty or SDRT will generally arise on a transfer of ordinary shares into CREST, unless such transfer is made for a consideration in money or money&#146;s worth, in which case a liability  to SDRT will arise, usually at the rate of 0.5% of the value of the consideration.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A transfer of ordinary shares effected on a paperless basis within CREST will generally be subject to SDRT at the rate of 0.5% of the value of the consideration.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stamp duty, or SDRT, is generally payable upon the transfer or issue (other than under the Separation) of ordinary shares to, or to a nominee or, in some cases, agent of, a person whose  business is or includes issuing depositary receipts or the provision of clearance services. For these purposes, the current rate of stamp duty and SDRT is 1.5% (rounded up, in the case of stamp duty,  to the nearest &pound;5). The rate is applied, in each case, to the amount or value of the consideration or, in some circumstances, to the value or the issue price of the ordinary shares.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided that the instrument of transfer is not executed in the UK and remains at all subsequent times outside the UK, no stamp duty should be payable on the transfer of ADSs. An agreement  to transfer ADSs will not give rise to a liability to SDRT.</font></p>
<p align=center><font face="serif" size="2"><b><a name="p92a"></a>DOCUMENTS ON
  DISPLAY</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is possible to read and copy documents referred to in this annual report on Form 20-F that have been filed with the SEC at the SEC&#146;s public reference room located at 450 Fifth Street, NW,  Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms and their copy charges. The Company&#146;s SEC filings since November 4, 2002  are also publicly available through the SEC&#146;s website located at http://www.sec.gov</font></p>
<p><font face="serif" size="2"><b><a name="p92b"></a>ITEM 11.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>QUANTITATIVE
  AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualitative information on treasury management and exchange rate and interest rate risk is disclosed in &#147;Item&nbsp;5. Operating and Financial Review and Prospects &#150; Liquidity and Capital  Resources&#148;.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, as disclosed in &#147;Item&nbsp;5. Operating and Financial Review and Prospects &#150; Liquidity and Capital Resources&#148;, the Group has now completed the repurchase of all of its &pound;10 million  Floating Rate Notes due 2004, all of its &#128;25 million 4.52% Notes due 2006 and 92.76% of the principal amount of its &pound;250 million 5.75% Notes due 2007. At a meeting of the holders of the &pound;250  million 103/8% Debenture Stock 2016 (the &#147;Stock&#148;) convened on January&nbsp;14, 2003, a resolution was passed approving the insertion of an option into the terms and conditions of the Stock requiring  the Company to redeem the Stock no later than May&nbsp;31, 2003. This enables the Company to redeem the Stock at a price corresponding to a yield of 100 basis points over the yield of UK Treasury  Stock 8% due 2015. The Company gave notice to Stockholders on February 11, 2003 that it will redeem all of the Stock on February 27, 20
03. The premium on redemption is currently estimated at  &pound;122 million. The impact of the repayment of long-term debt obligations on the interest rate risk and maturity profile of the Group&#146;s net borrowings will be addressed in accordance with the policies  set out in &#147;Item&nbsp;5. Operating and Financial Review and Prospects &#150; Liquidity and Capital Resources&#148;.</font></p>
<p><font face="serif" size="2"><b>Quantitative Information about Market Risk</b></font></p>
<p><font face="serif" size="2"><b><i>Interest Rate Sensitivity</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below provide information about the Group&#146;s derivative and other financial instruments that are sensitive to changes in interest rates, including interest rate swaps and debt  obligations. For long-term debt obligations (excluding debt due entirely within one year), the table presents principal cash flows and related weighted average interest rates by expected maturity  dates. For interest rate swaps and forward rate agreements, the table presents notional amounts and weighted average interest rates by expected maturity dates. Weighted</font></p>
<p></p>
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<p><font face="serif" size="2">average variable rates are based on rates set at the balance sheet date. The information is presented in sterling, which is the Group&#146;s  reporting currency. The actual currencies of the instruments are indicated in parentheses.</font></p>
<p><font face="serif" size="2">At September 30, 2002</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Expected
      to mature before September 30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2007</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Thereafter</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair
      Value</b>(a)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=23 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million, except percentages)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Long-Term
        Debt:</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed
        rate (US$)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">201.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Average
        interest rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.6</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed
        rate (&pound;)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">502.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">502.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">616.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Average
        interest rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed
        rate (Euro)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Average
        interest rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Variable
        rate (All currencies)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">580.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">638.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">638.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Average
        interest rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.3</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">At September 30, 2002</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Expected to mature before September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2007</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Thereafter</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair Value</b>(a)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=23 align=center valign=bottom><font face="serif" size="1"><b>(local currency million, except percentages)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Interest Rate Swaps and forward rate agreements:</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (US$)</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="4%" align=right valign=bottom><font face="serif" size="2">505</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="4%" align=right valign=bottom><font face="serif" size="2">100</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="4%" align=right valign=bottom><font face="serif" size="2">300</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="4%" align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="4%" align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">1,305</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">(51</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.6</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td align="right" valign=bottom><font face="serif" size="2">4.3</font></td>
    <td><font face="serif" size="2">&nbsp;%</font></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td align="right"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (&pound;)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.3</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Euro)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">256</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">256</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Euro)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Australian Dollar)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Hong Kong Dollar)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (US$)(b) Commencing before September 30, 2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.9</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Euro)(b) Commencing before September 30, 2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">115</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (Hong Kong Dollar)(b) Commencing before September 30, 2004</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">370</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">370</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the Group had entered into the following interest rate option agreements:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>At September 30, 2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Principal</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cap rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Swap rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Maturity</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">US$ Cap &#150; interest payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.00</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">US$ Swaption &#150; interest payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$250m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.47</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(a)</font></td>
    <td><font face="serif" size="2">Represents the net present value of the expected cash flows discounted at current market rates of interest.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(b)</font></td>
    <td><font face="serif" size="2">Contracts entered into before September 30, 2002 and commencing after that date with variable rates to be set in accordance with the contracts on commencement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">93</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p94"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b><i>Exchange Rate Sensitivity</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information provides details of the Group&#146;s derivative and other financial instruments by currency presented in sterling equivalents. The tables above provide details of non-  sterling denominated long-term debt obligations which are subject to foreign currency exchange rates movements while the table below presents amounts and weighted average exchanges rates of  foreign currency forward exchange contracts held at September 30, 2002. All forward exchange agreements mature within one year.</font></p>
<p><font face="serif" size="2"><b>Forward Exchange Contracts</b></font></p>
<p><font face="serif" size="2">At September 30, 2002</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Receive for &pound;</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Contract<br> amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Average contractual<br> exchange rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Currency</b></font></div></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">US dollar</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">9.2</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">1.48</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Euro</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fair Value</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the strategy to provide a currency hedge against currency net assets, the Group enters into currency swap agreements. A currency swap agreement has the effect of depositing cash  surplus to immediate requirements and borrowing currencies which are required.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group had the following currency swap agreements at September 30, 2002:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Deposited<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Borrowed<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to US dollar</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">&pound;1,518</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">$2,331</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to euro</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;640</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">999</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to Australian dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><a name="p94a"></a>ITEM 12.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>DESCRIPTION
  OF SECURITIES OTHER THAN EQUITY SECURITIES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p></p>
<p align=center><font face="serif" size="2">94</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p95"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>PART II</b></font></p>
<p><font face="serif" size="2"><b>ITEM 13.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></p>
<p><font face="serif" size="2"><b><a name="p95a"></a>ITEM 14.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>MATERIAL
  MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></p>
<p><font face="serif" size="2"><b><a name="p95b"></a>ITEM 15.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CONTROLS
  AND PROCEDURES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of a date within 90 days of the filing date of this Annual Report (the &#147;Evaluation Date&#148;), an evaluation was performed under the supervision, and with the participation, of the Company&#146;s  management, including the Chief Executive and Group Finance Director, of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures (as defined in  Exchange Act Rules 13a-14(c) and 15d-14(c)). Based on that evaluation, the Company&#146;s management, including the Chief Executive and Group Finance Director, concluded that the Company&#146;s  disclosure controls and procedures were effective as of the Evaluation Date. There have been no significant changes in the Company&#146;s internal controls or in other factors that could significantly  affect internal controls subsequent to the Evaluation Date.</font></p>
<p><font face="serif" size="2"><b><a name="p95c"></a>ITEM 16.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>[RESERVED]</b></font></p>
<p></p>
<p align=center><font face="serif" size="2">95</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p96"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>PART III</b></font></p>
<p><font face="serif" size="2"><b>ITEM 17.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>FINANCIAL STATEMENTS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<p><font face="serif" size="2"><b><a name="p96a"></a>ITEM 18.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>FINANCIAL
  STATEMENTS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following consolidated financial statements and related schedule, together with the report thereon of Ernst &amp; Young LLP, are filed as part of this Annual Report:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td align="center"><font face="serif" size="2">&nbsp;<b>Page</b><br>
      </font> <hr noshade size="1"> </td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-1"><font face="serif" size="2">Report
        and Consent of Independent Auditors</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-1"><font face="serif" size="2">F-1</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Financial
        Statements</font></div>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-2"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Consolidated
        Profit and Loss Account for the years ended September 30, 2002, 2001 and
        2000</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-2"><font face="serif" size="2">F-2</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-3"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Consolidated
        Statement of Total Recognized Gains and Losses for the years ended September
        30, 2002, 2001 and 2000</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-3"><font face="serif" size="2">F-3</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-4"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Consolidated
        Balance Sheet at September 30, 2002 and 2001</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-4"><font face="serif" size="2">F-4</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-5"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Consolidated
        Statement of Changes in Shareholders&#146; Funds for the years ended September&nbsp;30,
        2002, 2001 and 2000</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-5"><font face="serif" size="2">F-5</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-7"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Consolidated
        Statement of Cash Flows for the years ended September 30, 2002, 2001 and
        2000</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-7"><font face="serif" size="2">F-7</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pF-8"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Notes
        to the Financial Statements</font></a></div></td>
    <td align=right valign=bottom><a href="#pF-8"><font face="serif" size="2">F-8</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#pS-1"><font face="serif" size="2">Schedule
        for the years ended September 30, 2002, 2001 and 2000<br>
        Schedule II &#151; Valuation and Qualifying Accounts</font></a></div></td>
    <td align=right valign=bottom><a href="#pS-1"><font face="serif" size="2">SH-1</font></a></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">96</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p97"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="serif" size="2"><b>ITEM 19.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EXHIBITS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits are filed as part of this Annual Report:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 1</font></td>
    <td><font face="serif" size="2">Memorandum and Articles of Association (incorporated
      by reference to Exhibit 1 to Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-2bi.htm"><font face="serif" size="2">Exhibit
      2(b)(i)</font></a></td>
    <td><a href="b690316ex-2bi.htm"><font face="serif" size="2">Instruments defining
      the Rights of Holders of Long-Term Debt: The total amount of long-term debt
      securities of the Group authorized under any individual instrument, other
      than the &#147;Amended and Restated Trust Deed&#148; dated September&nbsp;21,
      2000 relating to the Company&#146;s &#128;2,000 million Debt Issuance Program
      originally constituted on October 9, 1998 (incorporated by reference to
      Exhibit 2 to Six Continents PLC&#146;s Annual Report on Form 20-F (File
      No. 1-10409), dated December 20, 2001), does not exceed 10% of the total
      assets of the Group on a consolidated basis. The Company agrees to furnish
      copies of any or all such instruments to the Securities and Exchange Commission
      upon request</font></a></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit
      4(a)(i)</font></td>
    <td><font face="serif" size="2">Agreement dated
      June 14, 2000 between the Company and others and Interbrew SA and others
      relating to the disposal of Bass Brewers (incorporated by reference to Exhibit
      4 to Six Continents PLC&#146;s Annual Report on Form 20-F (File No. 1-10409),
      dated December 21, 2000)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4aii.htm"><font face="serif" size="2">Exhibit 4(a)(ii)</font></a></td>
    <td><a href="b690316ex-4aii.htm"><font face="serif" size="2">&pound;3,000,000,000 Facility Agreement dated
      February 3, 2003 for Six Continents PLC</font></a></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(i)</font></td>
    <td><font face="serif" size="2">Tim Clarke&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(ii)</font></td>
    <td><font face="serif" size="2">Richard North&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit
      4(c)(iii)</font></td>
    <td><font face="serif" size="2">Thomas R Oliver&#146;s
      service contract (incorporated by reference to Exhibit 4 of Six Continents
      PLC&#146;s Annual Report on Form 20-F (File No.1-10409), dated December
      20, 2001)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4civ.htm"><font face="serif" size="2">Exhibit 4(c)(iv)</font></a></td>
    <td><a href="b690316ex-4civ.htm"><font face="serif" size="2">Agreement, dated February 12, 2003, between
      Thomas R. Oliver and Six Continents Hotels Limited</font></a></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4cv.htm"><font face="serif" size="2">Exhibit
      4(c)(v)</font></a></td>
    <td><a href="b690316ex-4cv.htm"><font face="serif" size="2">Consultancy Agreement,
      dated February 12, 2003, between Thomas R. Oliver and Six&nbsp;Continents
      Hotels Limited</font></a></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(vi)</font></td>
    <td><font face="serif" size="2">Sir Ian Prosser&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-8.htm"><font face="serif" size="2">Exhibit
      8</font></a></td>
    <td><a href="b690316ex-8.htm"><font face="serif" size="2">Subsidiaries</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">97</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-1"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>REPORT OF INDEPENDENT AUDITORS</b></font></p>
<p><font face="serif" size="2">To the Board of Directors<br>  SIX CONTINENTS PLC</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have audited the accompanying consolidated balance sheets of Six Continents PLC as of September 30, 2002 and 2001, and the related consolidated profit and loss accounts and  consolidated statements of total recognized gains and losses, changes in shareholders&#146; funds and cash flows for each of the three years in the period ended September 30, 2002. Our audits also  included the financial statement schedule listed in the Index at Item 18. These financial statements and schedule are the responsibility of the Company&#146;s management. Our responsibility is to express  an opinion on these financial statements and schedule based on our audits.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits in accordance with United Kingdom auditing standards and United States generally accepted auditing standards. Those standards require that we plan and perform the  audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and  disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial  statement presentation. We believe that our audits provide a reasonable basis for our opinion.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Six Continents PLC at September 30, 2002  and 2001, and the consolidated results of its operations and its consolidated cash flows for each of the three years in the period ended September&nbsp;30,&nbsp;2002 in conformity with accounting principles  generally accepted in the United Kingdom which differ in certain respects from those generally accepted in the United States (see Note 32 of Notes to the Financial Statements). Also, in our opinion,  the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note 1 of Notes to the Financial Statements, in fiscal 2002 the Company changed its method of accounting for deferred taxation.</font></p>
<p align="right"><font face="serif" size="2">ERNST &amp; YOUNG LLP</font></p>
<p><font face="serif" size="2">London, England<br>  December 4, 2002, except for <br>  Note 33 &#150; Post Balance Sheet Events, <br>  as to which the date is <br>  February 17, 2003</font></p>
<p align=center><font face="serif" size="2"><b>CONSENT OF INDEPENDENT AUDITORS</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the incorporation by reference in the Registration Statements  (Form F-3 No. 33-57534) and (Form S-8 Nos. 333-01572, 333-08336, 333-89508 and 333-99785) of Six  Continents PLC of our report dated December 4, 2002, except for Note 33 &#150; Post Balance Sheet Events, as to which the date is February 17, 2003, on the consolidated financial statements and  schedule included in the Annual Report (Form 20-F) of Six Continents PLC for the year ended September 30, 2002.</font></p>
<p align="right"><font face="serif" size="2">ERNST &amp; YOUNG LLP</font></p>
<p><font face="serif" size="2">London, England<br>  February 17, 2003</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-1</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-2"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
<br>
CONSOLIDATED PROFIT AND LOSS ACCOUNT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001
      restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2000
      restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Before<br>
      major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b><br>
      Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Before<br>
      major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b><br>
      Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Before<br>
      major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Major<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million, except per ordinary share amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Turnover
        &#151; </b>(Note 2)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Analyzed
        as:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Costs
        and overheads, less other income &#151; (Note 3)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,997</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,074</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,241</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,284</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4,264</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4,264</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Group
        operating profit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">894</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">894</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Share
        of associates&#146; operating profit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Total
        operating profit &#151; </b>(Note 2)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Analyzed
        as:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Non-operating
        exceptional items &#151; </b>(Note 5)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Analyzed
        as:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing
        operations<br>
        (Loss)/profit on disposal of fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss
        on disposal of operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demerger
        costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Profit
        on disposal of fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td> <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Profit
        on disposal of operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom> <hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#CCCCCC">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit
        on ordinary activities before interest &#151; (Note 2)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">594</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">790</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">908</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest
        receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest
        payable and similar charges &#151;<br>
        (Note 6)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(176</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(176</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(224</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(224</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(209</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(209</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit
        on ordinary activities before taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">534</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">731</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">690</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">756</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,049</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tax
        on profit on ordinary activities &#151; (Note&nbsp;7)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(167</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">115</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(52</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(222</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(223</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(230</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(112</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(342</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit
        on ordinary activities after taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">391</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">482</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">509</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(42</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">467</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">526</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,181</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,707</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority
        equity interests</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings
        available for shareholders (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">457</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">485</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(42</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">443</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">510</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,181</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends
        on equity and non-equity shares &#151; (Note 8)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(293</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(293</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(292</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(292</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retained
        for reinvestment in the business</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(42</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,181</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,399</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font face="serif" size="2">Earnings per ordinary share &#151; (Note 9)</font></td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Basic</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53.0p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.3p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">193.7p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Diluted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.7p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51.0p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">192.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Adjusted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.2p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1 of Notes to the Financial Statements).</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">A summary of the significant adjustments to
      earnings available for shareholders (net income) that would be required
      had United States generally accepted accounting principles been applied
      instead of those generally accepted in the United Kingdom is set out in
      Note 32 of Notes to the Financial Statements.</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2"><i>The Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-3"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>CONSOLIDATED STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br>
      restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br>
      restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings
        available for shareholders</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">457</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">443</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">1,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Revaluations
        (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Reversal
        of previous revaluation gains due to impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">Exchange differences (ii)</font></td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Goodwill
        eliminated &#151; (Note 25)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2"> (98</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;9</font></div></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;157</font></div></td>
    <td align=right valign=bottom>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other
        assets and liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(127</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        recognized gains and losses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(72</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total
        recognized gains for the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">385</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">450</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,739</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Prior
        year adjustment on adoption of FRS 19</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(264</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total
        recognized gains since previous year end</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">121</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">450</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,739</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1 of Notes to the Financial Statements).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">In 2000, relates to revaluation in associated undertaking.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Foreign currency denominated net assets, including goodwill purchased prior to September 30, 1998 and eliminated against Group reserves, and related foreign currency borrowings and currency swaps, are translated at each balance sheet date giving rise to exchange differences which are taken to Group reserves as recognized gains and losses during the period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">The statement of comprehensive income required under United States generally accepted accounting principles is set out in Note 32 of Notes to the Financial Statements.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note of historical cost Group profits and losses</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Reported profit on ordinary activities before taxation</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">534</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">690</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">2,049</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Realization of revaluation gains of previous periods</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">324</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjustment for previously recognized revaluation losses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Historical cost profit on ordinary activities before<br> taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,060</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Historical cost profit retained after taxation, minority<br> equity interests and dividends</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">118</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">474</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,410</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1 of Notes to the Financial Statements).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align="center"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>The
  Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-3</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>CONSOLIDATED BALANCE SHEET</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td width="8%" colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Fixed assets</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Intangible assets &#151; (Note 15)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">173</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tangible assets &#151; (Note 16)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investments &#151; (Note 17)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,063</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Current assets</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Stocks &#151; (Note 18)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Debtors &#151; (Note 19)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amounts falling due within one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">538</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">527</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amounts falling due after one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash at bank and in hand</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,016</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Creditors: amounts falling due within one year &#151; (Note 20)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,273</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,009</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net current liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,257</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(909</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Total assets less current liabilities</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,806</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,089</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Creditors: amounts falling due after one year &#151; (Note 21)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(764</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,180</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions for liabilities and charges &#151; (Note 22)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Deferred taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(495</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(487</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other provisions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(32</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(104</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority equity interests</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(149</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(133</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Net assets</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Capital and reserves</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equity share capital</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Share premium account</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">802</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">799</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Revaluation reserve</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,020</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,025</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Capital redemption reserve</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">853</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">853</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit and loss account</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,448</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equity shareholders&#146; funds (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1 of Notes to the Financial Statements).</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">A summary of the significant adjustments to
      shareholders&#146; funds that would be required had United States generally
      accepted accounting principles been applied instead of those generally accepted
      in the United Kingdom is set out in Note 32 of Notes to the Financial Statements.</font></td>
  </tr>
</table>
<p></p>
<p align="center"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>The
  Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-4</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-5"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS&#146; FUNDS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>Share capital</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>Retained earnings and other reserves</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=11 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Number of<br> preference<br> shares</b><br> (i)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Number of<br> ordinary<br> shares</b><br> (i)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Preference<br> shares of<br> 95.5p<br> each </b>(i)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Ordinary<br> shares</b><br> (i)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Share<br> premium<br> account</b><br> (ii)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Revaluation<br> reserve </b>(ii)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Capital<br> redemption<br> reserve </b>(ii)</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit<br> and loss<br> account</b></font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total<br> shareholders&#146;<br> funds</b></font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(millions)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(millions)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 1999 as previously reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">798</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,354</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">831</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,313</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Prior year adjustment on adoption of FRS 19</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(255</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(255</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At October 1, 1999 as restated </b>(iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">798</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,354</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">831</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">579</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,058</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
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    <td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September</b>&nbsp;<b>30, 2000 </b>(iii)</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">879</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange adjustments on: assets</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">borrowings</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Allotment of ordinary shares:</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Option schemes (iv)</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Repurchase of ordinary shares</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Realized
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  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retained income</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">150</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September</b>&nbsp;<b>30, 2001 </b>(iii)</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">866</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">242</font></td>
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  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goodwill &#151; (Note 25)</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange
        adjustments on: assets</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">(3)</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(161</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(164</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">borrowings and currency swaps</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">128</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">128</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Allotment of ordinary shares:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Option schemes (iv)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Revaluation surplus realized on disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Transfer of previously recognized revaluation losses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Reversal of previous revaluation gains due to impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retained income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September</b>&nbsp;<b>30, 2002 </b>(iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">867</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">802</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,020</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">853</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,448</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">At September&nbsp;30, 2000, 2001 and 2002
      the authorized share capital of the Company was &pound;1,149 million, comprising
      1,073 million ordinary shares of 28p each and 889 million non- cumulative
      redeemable preference shares of 95.5p each. All the non-cumulative preference
      shares were redeemed by September&nbsp;30,&nbsp;2000.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">The aggregate consideration in respect of
      ordinary shares issued in respect of option schemes during the year was
      &pound;3 million (2001 &pound;9 million, 2000 &pound;11 million).</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">At the Annual General Meeting on February
      13, 2003 authority was given to the Company to purchase up to 14.99% of
      its own shares until the Annual General Meeting in 2004.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">The share premium account, revaluation reserve and capital redemption reserve are not distributable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="serif" size="2"><i>The Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-5</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-6"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">Retained earnings and other reserves at September&nbsp;30, 2002 were decreased by cumulative exchange adjustments of &pound;142 million (2001 &pound;200 million, 2000 &pound;202 million).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">Includes transfer of &pound;1 million (2001 &pound;2 million, 2000 &pound;6 million) from the profit and loss account in respect of shares issued to the qualifying employee share ownership trust in respect of the Six Continents Employee Savings Share Scheme.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(v)</font></td>
    <td><font face="serif" size="2">Represents shares issued as part consideration for the acquisition of a leisure retail business comprising 550&nbsp;pubs formerly owned by Allied Domecq Retailing Ltd. The shares were issued for a total consideration of &pound;741 million.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2"><i>The Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-6</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-7"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>CONSOLIDATED STATEMENT OF CASH FLOWS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Operating activities</b> &#151; (Note 10)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">720</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">984</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,103</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Dividends received from associates</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(186</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(229</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(191</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends paid to minority shareholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends paid to non-equity shareholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest received</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">160</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Returns on investments and servicing of finance</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(75</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(74</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(142</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">UK corporation tax paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(96</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(102</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(101</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Overseas corporate tax paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(27</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(47</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(57</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Taxation</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(123</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(149</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(158</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Paid:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(648</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(939</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(686</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Trade loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(39</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(31</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Received:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">134</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Trade loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Capital expenditure and financial investment</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(513</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(868</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(615</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,014</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(417</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and overdrafts acquired</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">624</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,290</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and overdrafts disposed</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Acquisitions and disposals</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(129</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Equity dividends</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(299</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(290</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(285</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Net cash flow</b> &#151; (Note 10)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(526</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,732</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Management of liquid resources and financing</b> &#151; (Note 14)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">295</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">493</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,818</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Movement in cash and overdrafts</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(33</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(86</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">The significant differences between the cash flow statement presented above and that required under United States generally accepted accounting principles are described in Note 32 of Notes to the Financial Statements.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2"><i>The Notes to the Financial Statements are an integral part of these Financial Statements.</i></font></p>
<p></p>
<p align=center><font face="serif" size="2">F-7</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS</b></font></p>
<p><font face="serif" size="2"><b>Note 1 &#151; Accounting Policies</b></font></p>
<p><font face="serif" size="2"><b><i>Basis of accounting</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements of Six Continents PLC (the &#147;Company&#148;) and its subsidiaries (together, the &#147;Group&#148;) are prepared under the historical cost convention as modified by the revaluation  of certain tangible fixed assets. They have been drawn up to comply with applicable UK accounting standards, including Financial Reporting Standard (&#147;FRS&#148;) 19 &#147;Deferred Tax&#148; which applies for  the first time this year, FRS 17 &#147;Retirement Benefits&#148; and FRS 18 &#147;Accounting Policies&#148; which applied for the first time in the year ended September 30, 2001 and FRS 15 &#147;Tangible Fixed Assets&#148;  and FRS 16 &#147;Current Tax&#148; which applied for the first time in the year ended September 30, 2000. The new disclosure requirements introduced by FRS 17 are included in Note 4. An explanation as to  the effect of FRS 19 and FRS 15 and a summary of the significant accounting policies are set out below.</font>

</p>
<p><font face="serif" size="2"><b><i>Financial Reporting Standard 19 &#151; Deferred Tax (&#147;FRS 19&#148;)</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FRS 19 &#147;Deferred Tax&#148; requires full provision, subject to certain exceptions, for deferred tax assets and liabilities arising from timing differences between the recognition of gains and losses  in the financial statements and for tax purposes. Previously, Statement of Standard Accounting Practice (&#147;SSAP&#148;) 15 &#147;Accounting for deferred tax&#148; required recognition of deferred tax assets and  liabilities to the extent it was probable timing differences would reverse in the foreseeable future. This change in accounting policy has been accounted for as a prior year adjustment and previously  reported figures have been restated accordingly. The effect on the Group profit and loss account has been to increase the tax charge by &pound;18 million (2001 &pound;14 million, 2000 &pound;55 million) and to  increase minority equity interests by &pound;3 million (2001 &pound;2 million, 2000 nil). The Group balance sheet effect is to inc

rease deferred tax provisions by &pound;298 million (2001 &pound;279 million) and reduce  minority interests by &pound;12 million (2001&nbsp;&pound;15&nbsp;million). In applying FRS 19, deferred tax provisions have not been calculated on a discounted basis. FRS 19 has no impact on cash flows.</font></p>
<p><font face="serif" size="2"><b><i>Financial Reporting Standard 15 &#151; Tangible Fixed Assets (&#147;FRS 15&#148;)</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to October 1, 1999, no depreciation was charged against profit in respect of hotels and public houses held as freehold or with a leasehold interest in excess of 50 years. This was because  such properties were maintained, as a matter of policy, by a program of repair and refurbishment such that their expected residual values in real terms (measured by reference to cost and/or valuation)  were at least equal to their book values. As a result, any depreciation, as required by the Companies Act 1985 and by then applicable accounting standards, would have been immaterial.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FRS 15 was implemented with effect from October 1, 1999. As a result, the values of properties were disaggregated into their separate components, with each component being depreciated  over its estimated useful life. These lives are given under &#147;depreciation and amortization&#148; below. The impact of this change in the year ended September 30, 2000 was a charge of &pound;45 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When implementing FRS 15, the Group did not adopt a policy of revaluing properties. The transitional rules of FRS 15 were applied so that the carrying values of properties include an  element resulting from previous valuations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Urgent Issues Task Force Abstract 23 &#147;Application of the Transitional Rules in FRS&nbsp;15&#148;, figures for prior periods were not restated, as the circumstances under which  such restatement should be made did not apply to the Group.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-8</font></p>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 1 &#151; Accounting Policies &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b><i>Basis of consolidation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements comprise the financial statements of the parent company and its subsidiary undertakings. The results of those businesses acquired or disposed of during  the year are consolidated for the period during which they were under the Group&#146;s dominant influence.</font></p>
<p><font face="serif" size="2"><b><i>Foreign currencies</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions in foreign currencies are recorded at the exchange rates ruling on the dates of the transactions, adjusted for the effects of any hedging arrangements. Assets and liabilities  denominated in foreign currencies are translated into sterling at the relevant rates of exchange ruling at the balance sheet date.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of overseas operations are translated into sterling at weighted average rates of exchange for the period. Exchange differences arising from the retranslation of opening net assets  (including any goodwill previously eliminated against shareholders&#146; equity) denominated in foreign currencies and foreign currency borrowings and currency swap agreements used to hedge those  assets are taken direct to shareholders&#146; equity. All other exchange differences are taken to the profit and loss account.</font></p>
<p><font face="serif" size="2"><b><i>Treasury instruments</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest arising on interest rate agreements is taken to the profit and loss account.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums payable on interest rate agreements are charged to the profit and loss account over the term of the relevant agreements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency swap agreements are retranslated at exchange rates ruling at the balance sheet date with the net amount being included in either current asset investments or borrowings. Interest  payable or receivable arising from currency swap agreements is taken to the profit and loss account on a gross basis over the term of the relevant agreements.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains or losses arising on forward exchange contracts are taken to the profit and loss account in line with the transactions they are hedging.</font></p>
<p><font face="serif" size="2"><b><i>Fixed assets and depreciation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Goodwill</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Any excess of purchase consideration for an acquired business over the fair value attributed to its separately identifiable assets and liabilities represents goodwill. Goodwill is capitalized as an intangible asset. Goodwill arising on acquisitions prior to September 30, 1998 was eliminated against shareholders&#146; funds. To the extent that goodwill denominated in foreign currencies continues to have value, it is translated into sterling at each balance sheet date and any movements are accounted for as set out under &#147;foreign currencies&#148; above. On disposal of a business, any goodwill relating to the business and previously eliminated against shareholders&#146; funds, is taken into account in determining the gain or loss on disposal.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Other intangible assets</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">On acquisition of a business, no value is attributed to other intangible assets which cannot be separately identified and reliably measured. Intangible assets acquired separately from a business are capitalized and identified separately on the balance sheet. No value is attributed to internally generated intangible assets.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-9</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 1 &#151; Accounting Policies &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Tangible assets</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Freehold and leasehold land and buildings are stated at cost, or valuation, less depreciation. All other fixed assets are stated at cost less depreciation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Revaluation</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Surpluses or deficits arising from previous professional valuations of properties, realized on the disposal of an asset, are transferred from the revaluation reserve to the profit and loss account reserve.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Impairment</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Any impairment arising on an income-generating unit, other than an impairment which represents a consumption of economic benefits, is eliminated against any specific revaluation reserve relating to the impaired assets in that income-generating unit with any excess being charged to the profit and loss account.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Depreciation and amortization</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Goodwill and other intangible assets are amortized over their estimated useful lives, generally 20 years.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">Freehold land is not depreciated. All other tangible fixed assets are depreciated to a residual value over their estimated useful lives, namely:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td width="2%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="41%"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Freehold
        buildings</font></div></td>
    <td width="53%"><font face="serif" size="2">50 years</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Leasehold
        buildings</font></div></td>
    <td><font face="serif" size="2">Lesser of unexpired term of lease and 50 years</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixtures,
        fittings and equipment</font></div></td>
    <td><font face="serif" size="2">3-25 years</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Plant
        and machinery</font></div></td>
    <td><font face="serif" size="2">4-20 years</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="96%"><font face="serif" size="2">All depreciation and amortization
      is charged on a straight line basis.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Investments</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="95%"><font face="serif" size="2">Fixed asset investments are stated at cost less any provision for diminution in value.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Deferred taxation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets and liabilities are recognized, subject to certain exceptions, in respect of all material timing differences between the recognition of gains and losses in the financial  statements and for tax purposes. Those timing differences recognized include accelerated capital allowances, unrelieved tax losses and short-term timing differences. Timing differences not  recognized include those relating to the revaluation of fixed assets in the absence of a commitment to sell the assets, the gain on sale of assets rolled into replacement assets and the distribution of  profits from overseas subsidiaries in the absence of any commitment by the subsidiary to make the distribution.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets are recognized to the extent that it is regarded as more likely than not that they will be recovered.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax is calculated on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or  substantively enacted at the balance sheet date.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-10</font></p>
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<div style="page-break-before:always"></div>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 1 &#151; Accounting Policies &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b><i>Leases</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease rentals are charged to the profit and loss account on a straight line basis over the term of the lease.</font></p>
<p><font face="serif" size="2"><b><i>Pensions</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group continues to account for pensions in accordance with SSAP 24 &#147;Accounting for pension costs&#148;. The regular costs of providing pensions to current employees is charged to the  profit and loss account over the average expected service life of those employees. Variations in regular pension cost are amortized over the average expected service life of current employees on a  straight line basis.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated differences between the amount charged to the profit and loss account and the payments made to the pension plans are treated as either prepayments or creditors in the balance  sheet.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The additional disclosures required by the transitional arrangements of FRS 17 &#147;Retirement Benefits&#148; are given in Note 4.</font></p>
<p><font face="serif" size="2"><b><i>Stocks</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks are stated at the lower of cost and net realizable value.</font></p>
<p><font face="serif" size="2"><b><i>Turnover</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turnover represent sales (excluding VAT and similar taxes) of goods and services, net of discounts, provided in the normal course of business.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turnover in the Six Continents Hotels division primarily comprises room and food and beverage sales in the owned and leased estate, franchise fees received in connection with the franchise  of the Group&#146;s brands, and management fees earned on hotels managed under contracts with hotel owners. Owned and leased estate turnover is recognized when rooms are occupied, franchise and  management fees are recognized as they are earned.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Turnover in the Six Continents Retail division primarily comprises food and beverage sales which are usually settled at time of sale.</font></p>
<p><font face="serif" size="2"><b><i>Loyalty program</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Hotel Loyalty Program, Priority Club Rewards, enables members to earn points during each stay at a Six Continents hotel and redeem the points at a later date for free accommodation or  other benefits. The future redemption liability is included in creditors less than, and greater than, one year and is estimated using actuarial methods to give eventual redemption rates and points  values. The program is funded through hotel assessments.</font></p>
<p><font face="serif" size="2"><b><i>Use of estimates</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets  and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-11</font></p>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 2 &#151; Segment Analysis</b></font></p>
<p><font face="serif" size="2"><b>Exchange rates</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of overseas operations have been translated into sterling at weighted average rates of exchange for the year. In the case of the US dollar, the translation rate is &pound;1 = $1.48 (2001 &pound;1  = $1.44, 2000 &pound;1 = $1.55). In&nbsp;the case of the euro, the translation rate is &pound;1 = &#128;1.60 (2001 &pound;1 = &#128;1.62, 2000 &pound;1 = &#128;1.62).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency denominated assets and liabilities have been translated into sterling at the rates of exchange on September 30, 2002. In the case of the US dollar, the translation rate is &pound;1 =  $1.56 (2001 &pound;1 = $1.47, 2000 &pound;1&nbsp;=&nbsp;$1.47). In the case of the euro, the translation rate is &pound;1 = &#128;1.59 (2001 &pound;1 = &#128;1.61, 2000 &pound;1 = &#128;1.66).</font></p>
<p><font face="serif" size="2"><b>Turnover</b> (i)</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2000</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>External</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Inter-<br>
      divisional</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>External</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Inter-<br>
      divisional</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>External</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Inter-<br>
      divisional</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Americas</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">1,045</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">1,045</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">864</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">864</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;EMEA</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">750</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">750</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">626</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">626</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,532</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,532</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,896</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,896</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,581</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,581</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft
        Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">602</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">602</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">507</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">539</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Pubs
        &amp; Bars</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">866</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">866</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">832</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">832</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Restaurants</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">564</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">564</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">520</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">520</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Inns</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,475</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,475</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,557</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,557</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,674</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,674</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,617</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,040</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued
        operations (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">237</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,620</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,617</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,040</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">280</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,438</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      origin</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      destination</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      origin</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      destination</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      origin</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>By
      destination</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        Kingdom</font></div></td>
    <td width="4%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">2,491</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"align=right valign=bottom><font face="serif" size="2">2,485</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">2,446</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">2,440</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">3,686</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">3,614</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Europe, the Middle East<br>
        and Africa</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">411</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">416</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">441</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">446</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">497</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">526</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        States of America</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">476</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">476</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">908</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">908</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">779</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,033</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,158</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Reflects 52 weeks trading, with the exception of Six Continents Hotels which reflects 12&nbsp;months trading.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Represents Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-12</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-13"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 2 &#151; Segment Analysis &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Profit</b> (i)</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total<br>
      operating<br>
      profit<br>
      before<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit
      on<br>
      ordinary<br>
      activities<br>
      before<br>
      interest</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total<br>
      operating<br>
      profit<br>
      before<br>
      exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exceptional<br>
      items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit
      on<br>
      ordinary<br>
      activities<br>
      before<br>
      interest</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total<br>
      operating<br>
      profit<br>
      before<br>
      exceptional<br>
      items </b>(ii)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exceptional<br>
      Items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit
      on<br>
      ordinary<br>
      activities<br>
      before<br>
      interest</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(46</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">229</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;EMEA</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">202</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">184</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(65</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(65</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(33</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(47</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(75</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">427</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">384</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">376</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">372</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft
        Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Pubs
        &amp; Bars</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Restaurants</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Inns</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">288</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">305</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">269</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing
        operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(81</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">537</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(81</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">711</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">778</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued&nbsp;operations&nbsp;(iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,423</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">594</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        Kingdom</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">397</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">436</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">431</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">416</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,318</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,883</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Europe, the Middle East and Africa</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        States of America</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">180</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">176</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">594</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">749</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Reflects 52 weeks trading, with the exception of Six Continents Hotels which reflects 12&nbsp;months trading.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">2000 included the Group&#146;s share of operating profit of associates of &pound;11 million. This&nbsp;comprises &pound;1 million in 2000 in respect of Six Continents Hotels and &pound;10 million in 2000 in respect of discontinued operations. The share of the associates&#146; operating profit arose wholly in the United Kingdom.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">Represents Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-13</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-14"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 2 &#151; Segment Analysis &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Hotels</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2000</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Turnover</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Operating<br>
      profit </b>(i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Turnover</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Operating<br>
      profit </b>(i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Turnover</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Operating<br>
      profit </b>(i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>($
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">862</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,502</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">345</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">353</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">EMEA</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">184</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">290</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">971</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">257</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">145</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">141</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(97</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(48</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">387</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,726</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">613</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Total operating profit before exceptional items.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sterling equivalents of the US dollar turnover and operating profit, translated at the weighted average rate of exchange are shown in the tables above.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-14</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-15"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 2 &#151; Segment Analysis &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Assets</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001
      restated*</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2000
      restated*</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net<br>
      operating</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net<br>
      operating</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net<br>
      operating</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,553</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,990</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,640</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,949</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,307</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,637</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft
        Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">405</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">375</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">252</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">387</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">292</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,642</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,467</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,506</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,328</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,954</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,728</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">479</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">151</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">577</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,157</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,854</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,552</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,688</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp; </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non-operating
        assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Current
        asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">862</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Cash
        at bank and in hand</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Corporate
        taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non-operating
        liabilities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,479</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,434</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,332</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Proposed
        dividend</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(213</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(207</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(204</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Corporate
        taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(455</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(548</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(433</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Deferred
        taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(495</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(487</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(462</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Minority
        equity interests</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(149</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(133</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,131</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        Kingdom</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,233</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,949</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,973</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,025</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,568</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Europe, the Middle East and Africa</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,160</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,039</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,088</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">930</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">922</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">United
        States of America</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,328</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,013</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,462</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">940</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Rest
        of Americas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">121</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Asia
        Pacific</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">467</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">448</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">472</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">233</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,854</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,552</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,688</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        non-operating liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,488</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,367</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,557</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,131</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note 1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-15</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="pF-16"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 3 &#151; Costs and Overheads, Less Other Income</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2000</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Continuing<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Discontinued<br> operations</b> (i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Raw materials and consumables</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">737</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">788</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">759</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">222</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%" align=right valign=bottom><font face="serif" size="2">981</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Changes in stocks of finished goods and work in progress</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Staff costs &#151; (Note 4)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,024</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">126</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation of tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">208</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">283</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Impairment of tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amortization of goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hire of plant and machinery</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Property rentals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">216</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">181</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">183</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from fixed asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other external charges</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">813</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">911</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">794</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">839</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,633</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,074</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,284</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Major operating exceptional items included above:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment of tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staff costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other external charges</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><i>Auditors&#146; remuneration paid to Ernst &amp; Young LLP</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Group
        audit fee</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.7</font></td>
    <td valign=bottom><font face="serif" size="2">(i)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non-audit
        services &#151; UK</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&#151;
        Overseas</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-audit services provided in the year were taxation advice &pound;1.2 million (2001 &pound;1.4 million, 2000 &pound;0.7&nbsp;million), transaction support &pound;2.1 million (2001 &pound;3.4 million, 2000 &pound;0.8 million),  local statutory audits and regulatory and compliance work &pound;1.7 million (2001 &pound;0.8 million, 2000 &pound;0.1 million) and other services &pound;0.6&nbsp;million (2001&nbsp;&pound;0.7 million, 2000 nil). All fees for non-audit  services are those paid to the Group auditor, Ernst &amp; Young LLP.</font></p>
<p><font face="serif" size="2"><hr noshade size="1" align="left" width="100"></font>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Includes &pound;0.7 million paid to Deloitte &amp; Touche.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-16</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-17"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff</b></font></p>
<p><font face="serif" size="2"><b>Costs</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Wages
        and salaries</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">942</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">997</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,045</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Social
        security costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pensions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,150</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Employee numbers</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average number of persons employed, including part-time employees:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(Number)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28,183</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35,514</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29,306</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,565</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,610</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38,740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48,011</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">244</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">69,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">80,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued operations (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,265</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">69,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">85,561</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Pensions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Regular cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Variations from regular cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(28</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(28</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Notional interest on prepayment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pension cost in respect of the two principal plans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other plans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement and death benefits are provided for eligible Group employees in the United Kingdom principally by the Six Continents Pension Plan (&#147;SCPP&#148;) which covers approximately 7,875  (2001 6,989, 2000 8,298) employees and the Six Continents Executive Pension Plan (&#147;SCEPP&#148;) which covers approximately 411 (2001 396, 2000 400) employees. The plans are predominantly  defined benefit schemes for current members. For new entrants, the plans will provide defined contribution benefits. The assets of the plans are held in self-administered trust funds separate from the  Group&#146;s assets. The Group operates a number of minor pension schemes outside the United&nbsp;Kingdom, the most significant of which is a defined contribution scheme in the United States; there is no  material difference between the pension costs of, and contributions to, these schemes.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group has no other significant post-retirement obligations.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group continues to account for its defined benefit obligations in accordance with SSAP 24. The pension costs related to the two principal plans are assessed in accordance with the advice  of independent qualified actuaries using the projected unit method. They reflect the March 31, 1999 actuarial valuations. The significant assumptions in these valuations were that wages and salaries  increase on average by 4% per annum, the long-term</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-18"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">return on assets is 6% per annum and pensions increase by 2.5% per annum. The average expected remaining service life of current  employees is 14 years.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 1999, the market value of the combined assets of the two principal plans was &pound;2,132 million and the value of the assets was sufficient to cover 117% of the benefits that had  accrued to members after allowing for expected increases in earnings. The assets and liabilities of the plans reduced significantly following the pension scheme transfers that arose from the disposal  of Bass Brewers in August 2000.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actuarial valuations as at March 31, 2002 have now been finalized. Results reveal that experience has been adverse since 1999, which will result in an increased pension cost with effect from  October&nbsp;1, 2002, but that the plans were fully funded on an actuarial basis at March 31, 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the year to September 30, 2002, the Group made regular contributions to the two principal plans of &pound;18&nbsp;million (2001 &pound;17 million, 2000 &pound;20 million) and additional contributions of &pound;15  million (2001 nil, 2000&nbsp;nil). The agreed employer contribution rates to the defined benefit arrangements for the year to September 30, 2003 are 11% for the SCPP and 27.1% for the SCEPP. In  addition, it has been decided that further additional contributions of &pound;45 million will be made, most of which are expected to be paid in the year to September 30, 2003.</font></p>
<p><font face="serif" size="2"><b>FRS 17 disclosures</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuations used for FRS 17 disclosures are based on the initial results of the actuarial valuations at March 31,&nbsp;2002 updated by independent qualified actuaries to September 30, 2002.  Scheme assets are stated at market value at September 30, 2002 and the liabilities of the schemes have been assessed as at the same date using the projected unit method. As the two principal plans  are now closed as defined benefit schemes, the current service cost as calculated under the projected unit method will increase as members approach retirement.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal assumptions used by the actuaries to determine the liabilities on a FRS 17 basis were:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Wages and salaries increases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.9</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pension increases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.3</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discount rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Inflation rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.3</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.4</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td valign=bottom><font face="serif" size="2">(i)</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Inflation rate not disclosed in 2000.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The combined assets of the two principal schemes and expected rate of return were:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Long-
      term rate of<br>
      return expected at<br>
      September 30, 2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Value
      at<br>
      September 30, 2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Long-
      term rate of<br>
      return expected at<br>
      September 30, 2001</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Value
      at<br>
      September 30, 2001</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(%)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(%)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equities</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">8.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">507</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">7.5</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">700</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bonds</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">397</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">304</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">94</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total
        market value of assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">996</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Present
        value of scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,311</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,107</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deficit
        in the scheme</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(315</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Related
        deferred tax asset</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        pension liability</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(220</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-18</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-19"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If FRS 17 had been recognized in the financial statements, the effects would have been as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Year ended<br> September 30,<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million,<br> except<br> percentages)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Operating profit charge</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Past service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total operating profit charge</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Finance income</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected return on pension scheme assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest on pension scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(69</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net return</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Actuarial loss recognized in the Statement of Total Recognized Gains and Losses (&#147;STRGL&#148;)</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actual return less expected return on pension scheme assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(173</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Experience gains and losses arising on the scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Changes in assumptions underlying the present value of the scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(117</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial loss recognized in the STRGL</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(314</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Movement in deficit during the year</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(31</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Contributions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Finance income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial loss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(314</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(315</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>History of experience gains and losses</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Difference between the expected and actual return on scheme assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amount</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(173</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Percentage of scheme assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17%</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Experience gains and losses on scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amount</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Percentage of the present value of the scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2%</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total amount recognized in the STRGL</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amount</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(314</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Percentage of the present value of the scheme liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24%</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-20"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001 restated*</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net assets</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit and<br> Loss account<br> reserve</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net assets</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Profit and<br> Loss account<br> reserve</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Group net assets and reserves reconciliation</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">As reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,448</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less: SSAP 24 pension prepayment (net of deferred tax of &pound;25 million (2001&nbsp;&pound;15&nbsp;million))</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(57</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(57</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">FRS 17 net pension liability</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(220</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(220</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Restated for FRS 17</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,089</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,144</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,225</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Policy on remuneration of executive directors and senior executives</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following policy applies for the financial year 2002/2003 and in future years, but if the proposed Separation of the businesses is effected, separate policies will be established for the two  successor companies.</font></p>
<p><font face="serif" size="2"><b><i>Total level of remuneration</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Remuneration Committee aims to ensure that remuneration packages offered are competitive and designed to attract, retain and motivate executive directors and senior executives of the  right caliber. In particular, the Committee has regard to the levels of remuneration in the Group and in the specific industries and businesses with which Group companies compete and is also  sensitive to levels in the wider community.</font></p>
<p><font face="serif" size="2"><b><i>The main components</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company operates performance-related reward policies. These are designed to provide the appropriate balance between fixed remuneration and variable &#147;risk&#148; reward, which is linked to  the performance of both the Group and the individual. The normal policy for executive directors with UK-based remuneration packages is that, using &#147;target&#148; or &#147;expected value&#148; calculations, their  performance-related incentives will equate to approximately 60% of total remuneration. For directors with US-based remuneration packages the proportion would normally be 70%.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The main components of remuneration are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2"><i>Basic salary</i></font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">The salary for each executive director is
      based on individual performance and on information from independent professional
      sources on the salary levels for similar jobs in groups of comparable companies.
      Salary levels in Group companies and in the wider employment market are
      also taken into account.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2"><i>Annual performance bonus</i></font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Challenging performance goals are set and
      these must be achieved before the maximum bonus becomes payable. These goals
      include both personal objectives and targets linked to the Group&#146;s
      performance in increasing earnings per share. For executive directors in
      the United Kingdom, the maximum bonus opportunity is normally 50% of salary,
      with 10% linked to personal objectives and 40% to earnings per share. For
      executive directors with a US remuneration base, currently only Thomas R.
      Oliver, the </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-20</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-21"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="4" align="center"><font face="serif" size="2"><b>SIX CONTINENTS
      PLC<br>
      <br>
      NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font>
      <p></p> </td>
  </tr>

</table>

<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p>&nbsp;</p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">maximum bonus opportunity is 80% of salary,
      with 15% linked to personal objectives, 65% to earnings per share. A special
      deferred incentive plan has also been set up for each of Tim Clarke, Richard
      North and Thomas R. Oliver under which their annual bonus may be paid in
      Six Continents shares and deferred for 12&nbsp;months. Matching shares may
      also be awarded up to 1.5 times the deferred amount. Such awards are conditional
      on their continued employment with Six Continents for specified periods.</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Over time, the executive directors will be
      expected to hold all shares issued under the Company&#146;s remuneration
      plans until the value of their holding equates to twice their basic salary.
      This is a condition of future participation in the Special Deferred Incentive
      Plan.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Bonuses are not pensionable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;(iii)</font></td>
    <td><font face="serif" size="2"><i>Executive share options</i></font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">The Company believes that share ownership
      by executive directors and senior executives strengthens the link between
      the individual&#146;s personal interest and that of the shareholders. Grants
      of options are normally made annually and, except in exceptional circumstances,
      will not, in any year, exceed twice salary. If an individual&#146;s grant
      does exceed twice salary, it will be reported in the next annual report.
      A&nbsp;performance condition has to be met before options granted since
      1994 can be exercised. The&nbsp;performance condition is set each year by
      the Remuneration Committee, having regard to recommendations of the Investment
      Protection Committees of the major investing institutions. For&nbsp;options
      granted in 2002, the Company&#146;s adjusted earnings per share must increase
      by six percentage points more than the increase in the Retail Price Index
      in a three-year period, before the options become exercisable. This was
      felt to be a realistic but challenging condition in current economic conditions.
      There will be retesting of the performance condition, on two occasions only,
      with measurement from a fixed point. The achievement or otherwise of the
      performance condition is assessed by the Company based on its published
      results; such assessment is then audited by the Company&#146;s external
      auditors.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Executive directors were not granted options in the year under review because of the constraints of the Company&#146;s Code for dealing in its securities.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Executive share options are not pensionable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;(iv)&nbsp;</font></td>
    <td><font face="serif" size="2"><i>Long-term incentives</i></font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">A long-term incentive plan (the &#147;Plan&#148;)
      was introduced in 1994 to encourage continuing improvement in the Group&#146;s
      performance over the longer term. Its participants are the executive directors
      and those senior executives who are best placed to influence such performance.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">To align the interests of the participants with those of the shareholders, the Plan is based on share, rather than cash, benefits.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Any awards under the Plan are not pensionable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Generally, subject to the approval of the Remuneration Committee, a performance cycle commences each year and a performance condition is set. For cycles commencing up to and including 1999, the Company&#146;s total shareholder return (share value growth assuming reinvestment of gross dividends) is measured against those of ten comparator companies. For these cycles, if Six Continents leads the group over the four-year period, participants will be entitled to shares equivalent in value to between 6.25% and 50% (depending on seniority) of their cumulative basic salaries over that period. The benefit is reduced progressively so that, if Six Continents achieves fifth place in the group, the entitlement reduces to between 1.25% and 10%. Below fifth position there is no reward. If a benefit does accrue </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-21</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-22"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="4" align="center"><font face="serif" size="2"><b>SIX CONTINENTS
      PLC<br>
      <br>
      NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font>
      <p></p> </td>
  </tr>
  <tr>
    <td width="3%"><font size="2">&nbsp;</font></td>
  </tr>
</table>

<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">under the Plan, 50% of the shares, net of
      tax, are released in year five, 30% in year six and 20% in year seven.</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">For Thomas R. Oliver, the executive director
      formerly based in the US, there are Plan benefits comparable to US market
      levels, producing a maximum potential benefit of 87.5% of cumulative basic
      salary.</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">For the fifth performance cycle, which ended
      on September 30, 2002, Six Continents finished in eighth position in the
      group of comparator companies, as certified by Ernst &amp; Young LLP, the
      Company&#146;s auditors. Accordingly, no awards were made.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">For cycles of the Plan beginning on or after October 1, 2000, which are three years in length, the comparator group is 12 companies as follows:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Six Continents PLC<br> Accor SA<br> Enterprise Inns plc<br> Hilton Group plc<br> Hilton Hotels Corp.<br> Host Marriott Corp.<br> Marriott International Inc.<br> Millennium &amp; Copthorne plc<br> Scottish &amp; Newcastle plc<br> Starwood Hotels &amp; Resorts Worldwide Inc.<br> J.D. Wetherspoon plc<br> Whitbread plc</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Awards will be made for median performance or better and total shareholder return will continue to be the performance measure. If Six Continents ends a plan cycle in first position, participants will be entitled to shares equivalent to between 180% and 20%, according to seniority, of basic salary at the start of the cycle.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">For Thomas R. Oliver, the executive director formerly based in the US, there are Plan benefits comparable to US market levels for UK parented companies, producing a maximum potential benefit of 315% of basic salary at the start of the cycle.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">The measurement of the Company&#146;s total shareholder return performance and those of the comparator companies is carried out by the Company&#146;s external auditors, Ernst &amp; Young LLP, and is certified by them to the Remuneration Committee.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">If shares are awarded under the Plan, they are provided by the Company&#146;s Employee Share Ownership Plan (the ESOP).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Companies used for comparison</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In assessing levels of pay and benefits, Six Continents compares the packages offered by three different groups of comparator companies. These companies are chosen having regard to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">size &#151; turnover, profits and the number of people employed;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">diversity and complexity of businesses;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">geographical spread of businesses; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">growth, expansion and change profile.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-22</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-23"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;External consultants are used to advise the Committee on the structure and level of pay and benefits in the Company&#146;s markets.</font></p>
<p><font face="serif" size="2"><b><i>Policy on external appointments</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six Continents recognizes that its directors are likely to be invited to become non-executive directors of other large companies and that such non-executive duties can broaden experience and  knowledge, which will benefit Six Continents. Executive directors are, therefore, allowed to accept up to two non-executive appointments, as long as these are not likely to lead to conflicts of interest,  retaining the fees received.</font></p>
<p><font face="serif" size="2"><b><i>Contracts of service</i></b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><font face="serif" size="2"><i>(i)</i></font></td>
    <td><font face="serif" size="2"><i>Policy</i></font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">In 1999, the Remuneration Committee carried
      out a review of the Company&#146;s policy on length of notice periods in
      directors&#146; service contracts and payments on termination of such contracts.
      It agreed an objective to reduce notice periods for directors to 12 months
      as soon as obligations permit. An existing two-year notice period, which
      applies to one executive director, Richard North, will remain in place normally
      until the job holder has a change of position. The other executive directors
      have notice periods of 12 months or less. All new appointments are intended
      to have 12 month notice periods, but it is recognized that, for some appointments,
      a longer period may initially be necessary for competitive reasons, reducing
      to 12 months thereafter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">With the move toward one year contracts, the
      Committee has decided that termination payments are not required to be specified
      in directors&#146; contracts, save that in circumstances where a director&#146;s
      employment is terminated within 12 months following a change of control
      of the Company, the director would be entitled to compensation up to a sum
      equivalent to approximately 21 months&#146; remuneration and 24 months&#146;
      pension contributions. Upon the proposed Separation of the Six Continents
      Hotels and Soft Drinks and Six Continents Retail businesses, Richard North&#146;s
      notice period will be reduced to 12 months and no provisions for compensation
      for termination following change of control will be included in the current
      directors&#146; contracts.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2"><i>(ii)</i>&nbsp;</font></td>
    <td><font face="serif" size="2"><i>Directors&#146; contracts</i></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Director</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Contract date</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Unexpired term/<br> notice period</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%">
        <hr align="left" width="100" size="1" noshade>
      </div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="20%" align=right valign=bottom><font face="serif" size="2">January 13, 1997</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="20%" align=right valign=bottom><font face="serif" size="2">12 months</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">October 19, 1994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24 months</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas R. Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">February 18, 1997</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4 months</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">October 1, 1988</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7 months</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Policy regarding pensions</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UK-based executive directors and senior employees participate on the same basis in the Six Continents Executive Pension Plan and, if appropriate, the Six Continents Executive Top-Up  Scheme. Thomas R. Oliver, the executive director who transferred from the US to the United Kingdom, and senior US-based executives participate in US retirement benefits plans. Executives in  other countries, who do not participate in these plans, will participate in local plans, or the Six Continents International Retirement Income Plan.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-23</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-24"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  </b></font><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2"><b>Directors&#146; emoluments</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Total emoluments<br> excluding pensions</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Employer&#146;s pension<br> contributions</b>(i)<br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Basic</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Performance</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>salaries</b>&nbsp;<b>and</b>&nbsp;<b>fees</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>payments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Benefits</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b>(i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>(&pound; thousand)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Executive directors</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">575</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">93</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">694</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">725</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">539</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">97</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">629</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">889</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">643</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas R. Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">542</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">237</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">177</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">956</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,267</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,036</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">152</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">816</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">136</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">971</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,173</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">180</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">162</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Iain Napier (resigned September 4, 2000)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">985</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Non-executive directors</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Roger Carr</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Robert C. Larson</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Peter Middleton (retired July 31, 2001)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Geoffrey Mulcahy</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Michael Perry (retired July 31, 2001)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bryan Sanderson (appointed August 1, 2001)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Howard Stringer (appointed May 22, 2002)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,600</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">563</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">254</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,417</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">374</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,490</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,517</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">332</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,529</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,006</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">291</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,826</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade> </td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Employer&#146;s pension contributions for
      2000 in respect of Tim Clarke, Richard North and Iain Napier have been corrected
      from the figures disclosed in the Company&#146;s 20-F for the year ended
      September 30, 2000.</font></td>
  </tr>

</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The figures above
  represent emoluments earned as directors during the relevant financial year.
  Details of long-term rewards are shown in &#147;Long-Term Reward&#148; below.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Performance
  payments&#148; include the annual cash bonus and the value of ordinary shares
  allocated under the Employee Profit Share Scheme.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Benefits&#148; incorporate all tax assessable benefits arising from employment by the Company, which relate, in the main, to the provision of a company car and, for Thomas R. Oliver, additionally  include certain UK living allowances. As stated in the Annual Report 2001, Iain Napier, a former director, was entitled to certain benefits under the terms of an agreement reached with him prior to the sale of  Bass Brewers. Specifically, Iain Napier is entitled to an annuity (index linked up to 5% p.a.) after May 22, 2003 of approximately &pound;24,000 p.a. (or an appropriate lump sum).</font></p>
<p><font face="serif" size="2"><b>Special Deferred Incentive Plan</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tim Clarke, Richard North and Thomas R. Oliver are entitled under the Special Deferred Incentive Plan to an annual cash bonus some or all of which may be, at the discretion of the  Remuneration Committee, converted  into the Company&#146;s shares which will be released to those directors after at least twelve months, together with an award in shares provided by the Company, at  the discretion of the Remuneration Committee. Such awards are conditional on the directors being employed by the Group at the release dates. The table below shows the maximum share awards,  assuming the directors elect to defer their 2002 bonuses.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-24</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-25"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b>Special Deferred Incentive Plan</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Year</b>&nbsp;<b>earned</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Ordinary</b>&nbsp;<b>shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Value</b>(ii)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Release</b>&nbsp;<b>Date</b>(iii)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;000)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">2002</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">(i)</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">128</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%" align=right valign=bottom><font face="serif" size="2">December
      18, 2003</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2001</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">263</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">December 18, 2002</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2002</font></td>
    <td valign=bottom><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">134</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">December 18, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2001</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">429</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">December 18, 2002</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas R. Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2002</font></td>
    <td valign=bottom><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">112</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">March 10, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2001</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">March 10, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">170</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">March 10, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1999</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">March 10, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">March 10, 2003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Maximum matching award assuming director elects
      to participate.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Based on share price at September 30, 2002 &#150; &pound;5.93.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">Awards are conditional on employment by the Group at the release date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Directors&#146; pensions</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information relates to the pension arrangements provided for Tim Clarke, Richard North and Sir Ian Prosser under the Six Continents Executive Pension Plan (the &#147;Plan&#148;) and  in the cases of Tim Clarke and Richard North, under the unfunded Six Continents Executive Top-Up Scheme (&#147;SCETUS&#148;).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is a funded, Inland Revenue approved, final salary, occupational pension scheme. Its main features applicable to the executive directors are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">a normal pension age of 60;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">pension accrual of one thirtieth of final pensionable salary for each year of pensionable service;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">life assurance cover of four times pensionable salary;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">pensions payable in the event of ill health; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(v)</font></td>
    <td><font face="serif" size="2">spouse&#146;s and dependants&#146; pensions on death.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Plan benefits are subject to Inland Revenue limits. Where such limitation is due to the earnings &#147;cap&#148;, SCETUS is used to increase pension and death benefits to the level that would  otherwise have applied.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thomas R. Oliver, the executive director formerly based in the US, has retirement benefits provided via the 401(k) Retirement Plan for Employees of Six Continents Hotels and the Six  Continents Hotels Deferred Compensation Plan (DCP).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 401(k) Retirement Plan is a tax qualified plan providing benefits on a money purchase basis, with the member and the Company both contributing.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The DCP is a non-tax qualified plan, providing benefits on a money purchase basis, with the member and the Company both contributing.</font></p>
<p align=center><font face="serif" size="2">F-25</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-26"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2"><b><i>Directors&#146; pension benefits</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Age at</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Directors&#146;</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Transfer value of<br> accrued pension</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Increase in<br> transfer value<br> over year, less</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Increase in</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Increase in</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Accrued pension at<br> Sept. 30,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Sept. 30,<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>contributions</b><br> (i)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Sept. 30,<br> 2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Sept. 30,<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>directors&#146;<br> contributions</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>accrued pension</b><br> (ii)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>accrued pension</b><br> (iii)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br> (iv)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; pa)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; pa)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; pa)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">45</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">924,500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,261,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">322,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44,900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">193,200</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,015,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,408,800</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">379,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28,500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">134,700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,113,800</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,888,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">735,200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6,000</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">544,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Contributions paid in the year by the directors
      under the terms of the plans.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">The absolute increase in accrued pension during the year.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">The increase in accrued pension during the year, excluding any increase for inflation. In Sir Ian Prosser&#146;s case, the accrued pension is unchanged in absolute terms and so decreases after taking account of inflation.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">Accrued pension is that which would be paid annually on retirement at 60, based on service to September&nbsp;30,&nbsp;2002.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(v)</font></td>
    <td><font face="serif" size="2">Members of the Plan joining before 1989 have the option to pay Additional Voluntary Contributions, subject to Inland Revenue limits; neither the contributions, nor the resulting benefits, are included in the above table.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(vi)</font></td>
    <td><font face="serif" size="2">Thomas&nbsp;R. Oliver is no longer a member of a defined benefit pension arrangement. Over the year he contributed &pound;7,400 to the 401(k) Retirement Plan and &pound;220,900 to the DCP. The Company contributed &pound;7,900 to the 401(k) Retirement Plan and &pound;122,500 to the DCP on his behalf. The Company&#146;s contributions to Thomas&nbsp;R.&nbsp;Oliver&#146;s plans in the year to September 30, 2001 totaled &pound;151,800 (2000 &pound;29,900).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is additional information relating to directors&#146; pensions under the Plan and SCETUS:</font></p>
<p><font face="serif" size="2"><b><i>Normal pension age</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The normal pension age is 60. Sir Ian Prosser&#146;s pension arrangements have already been funded and charged in the Company&#146;s financial statements in previous years, except for Company  contributions payable at the ordinary rate for Plan members, so that the accrued pension can already be drawn as of right without reduction. The accrued pension is &pound;544,000 per annum.</font></p>
<p><font face="serif" size="2"><b><i>Dependants&#146; pensions</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the death of a director before his normal retirement age, a widow&#146;s pension equal to one-third of his own pension is payable; a child&#146;s pension of one-sixth of his pension is payable for  each of a maximum of two eligible children.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the death of a director after payment of his pension commences, a widow&#146;s pension of two-thirds of the director&#146;s full pension entitlement is payable; in addition, a child&#146;s pension of one-  sixth of his full pension entitlement is payable for each of a maximum of two eligible children.</font></p>
<p><font face="serif" size="2"><b><i>Early retirement rights</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After leaving the service of the Company, the member has the right to draw his accrued pension at any time after his 50th birthday, subject to a discount for early payment.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-26</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-27"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Pension increases</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All pensions (in excess of Guaranteed Minimum Pensions) are subject to contractual annual increases in line with the annual rise in the Retail Price Index, subject to a maximum of 5% per  annum. In addition, it is the Company&#146;s present aim to pay additional increases based on two-thirds of any rise in the Retail Price Index above 5% per annum.</font></p>
<p><font face="serif" size="2"><b><i>Other discretionary benefits</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the discretionary pension increases mentioned above, there are no discretionary practices which are taken into account in calculating transfer values on leaving service.</font></p>
<p><font face="serif" size="2"><b>Long-Term Reward</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 1998/2002 cycle of the Six Continents Long-Term Incentive Plan was completed on September 30, 2002. No award was made.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Pre tax value of award</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound;000)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Current executive directors</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">131</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas R. Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">162</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">245</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Former executive director</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Iain Napier</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">662</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive directors are currently included in the Plan for the cycles 1999/2003, 2000/2003 and 2001/2004 which may or may not provide awards, depending on the Company&#146;s  performance. Maximum potential awards are detailed in the description of the Plan on pages F-21 and F-22. No Plan cycle has commenced  in 2002.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-27</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-28"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2"><b>Directors&#146; options</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td rowspan="3"><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Ordinary
      shares under option</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 rowspan="3" align=center valign=bottom><div align="center"><font face="serif" size="1"><b>Weighted<br>
        average<br>
        option<br>
        price</b></font></div></td>
    <td rowspan="3"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=14 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Sept
      30,<br>
      2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Granted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Lapsed</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exercised</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Oct
      1,<br>
      2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Option<br>
      price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim
        Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,583</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">600</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24,600</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">554</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;B</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">855</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;C</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249,502</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">685</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">376,502</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,583</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">374,919</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">723</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard
        North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77,800</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">591</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;B</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95,600</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">756</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;C</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">680</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">416,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">416,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">681</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas&nbsp;R.
        Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;B</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">141,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">848</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;C</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">284,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">703</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">425,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">425,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">751</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">545</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;B</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246,700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">866</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;C</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">445,375</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">678</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">722,075</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">722,075</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">737</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no option exercised by any members of the Board (2001 527 shares). The gain on exercise by the Board in aggregate was &pound;448 in 2001 (2000 &pound;2,642).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options are held under the Executive Share Option, Employee Savings Share and Sharesave Schemes. The option grant in 2002 was made under the Sharesave Scheme and is exercisable  between October 1, 2005 and March 31, 2006. No options were granted to directors under the Executive Share Option Scheme.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options are exercisable, subject to the achievement of performance conditions for Executive Share Options, between the date of this report and March 1, 2011. Shares under option at  September 30, 2002 are designated as:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">A</font></td>
    <td><font face="serif" size="2">where the options are exercisable and the market price per share at September 30, 2002 was above the option price;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">B</font></td>
    <td><font face="serif" size="2">where the options are exercisable but the market price at September 30, 2002 was below the option price; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">C</font></td>
    <td><font face="serif" size="2">where the options are not yet exercisable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price on September 30, 2002 was 593p per share and the range during the year was 541p to 783p per share.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-28</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-29"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 4 &#151; Staff &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b>Directors&#146; shareholdings</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><div align="center"><b><font face="serif" size="1">2002
        (i)<br>
        Ordinary<br>
        shares of<br>
        28p</font> </b></div></td>
    <td><b><font face="serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan=2 align=center valign=bottom><div align="center"><b><font face="serif" size="1">2001
        (i)<br>
        Ordinary<br>
        shares of<br>
        28p</font></b></div></td>
    <td><b><font face="serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan=2 align=center valign=bottom><div align="center"><b><font face="serif" size="1">2000<br>
        Ordinary<br>
        shares of<br>
        28p</font> </b></div></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr align="center" size="1" noshade></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr align="center" size="1" noshade></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr align="center" size="1" noshade></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Executive
        directors</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tim
        Clarke</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76,330</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63,147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51,975</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Richard
        North</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">80,649</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66,759</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54,104</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas&nbsp;R.
        Oliver</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">68,105</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52,283</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Ian Prosser</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">276,238</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">251,010</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">227,102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Non-executive
        directors</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Roger
        Carr</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Robert
        C. Larson (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,571</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Peter Middleton (iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Geoffrey Mulcahy</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Michael Perry (iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,910</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,910</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bryan
        Sanderson</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sir
        Howard Stringer</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">n/a</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Or date of appointment, if later.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Held in the form of American Depositary Shares.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">For 2001, held at retirement date, July 31, 2001.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above shareholdings are all beneficial interests and include shares held on behalf of executive directors by the Trustees of the Employee Profit Share Scheme and of the Company&#146;s ESOP.  None of the directors has a beneficial interest in the shares of any subsidiary, nor in the debenture stocks issued by the Company or any subsidiary.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the executive directors, as potential beneficiaries under the Company&#146;s ESOP, were each technically deemed to be interested in 117,466 unallocated Six Continents  PLC ordinary shares held by the Trustees of the ESOP.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the period from October 1, 2002 to November 30, 2002, there has been no change in the Directors&#146; Interests.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Register of Directors&#146; Interests, which is open to inspection at the Registered Office, contains full details of directors&#146; shareholdings and share options.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-29</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 5 &#151; Exceptional Items</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001 restated*</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2000 restated*</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Continuing<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Discontinued<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Continuing<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Discontinued<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Continuing<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Discontinued<br> operations</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b> Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=26 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating exceptional items:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Hotels impairment charge (i)**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Hotels exceptional costs (ii)**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Total operating exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non-operating exceptional items:</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Profit/(loss) on disposal of operations</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bass Brewers (iii)**</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operations (iv)**</font></div></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">1,293</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;(Loss)/profit on disposal of fixed assets</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Demerger costs (v)**</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total non-operating exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">1,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total exceptional items before taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(81</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(81</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">38</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,296</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tax (charge)/credit on above items***</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(90</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(92</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exceptional tax charge (vii)**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exceptional tax credit (vi)**</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total exceptional items after taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(90</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(78</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(44</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,182</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Tangible fixed assets have been written down
      by &pound;113 million following an impairment review of the hotel estate.
      &pound;77 million has been charged above as an operating exceptional item
      and &pound;36 million reverses previous revaluation gains (see F-5).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Related to exceptional reorganization, restructuring and strategic appraisal costs in the Six Continents Hotels division.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">Bass Brewers was disposed of in August 2000. The profit in 2002 comprises &pound;9 million received in respect of the finalization of completion account adjustments, together with the release of disposal provisions no longer required of &pound;48 million. The profit in 2001 arose from deferred consideration and the finalization of the pension scheme transfer.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">Related to and resulting from the disposal of 988 smaller unbranded pubs by the Six Continents Retail division.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(v)</font></td>
    <td><font face="serif" size="2">On October&nbsp;1, 2002, the Board announced its intention to separate the Six Continents Retail business from Six Continents Hotels and Soft Drinks operations (see Note 33). The costs of evaluating the proposed Separation incurred to September 30, 2002 were &pound;4 million, comprising external professional fees.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(vi)</font></td>
    <td><font face="serif" size="2">Represents the release of over provisions for tax in respect of prior years.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(vii)</font></td>
    <td><font face="serif" size="2">Represents the tax arising from a reassessment of the amounts of capital gains on prior disposals which can be rolled over or held over, based on the Group&#146;s planned capital expenditure and likely disposals.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note 1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">**</font></td>
    <td><font face="serif" size="2">Major exceptional items for the purpose of calculating adjusted earnings per ordinary share (see Note 9).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">***</font></td>
    <td><font face="serif" size="2">Major exceptional items, except for tax charges of &pound;10 million (2001 nil; 2000 &pound;2 million), for the purpose of calculating adjusted earnings per ordinary share (see Notes 7 and 9).</font></td>
  </tr>

</table>
<p></p>
<p align=center><font face="serif" size="2">F-30</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-31"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 6 &#151; Interest Payable and Similar Charges</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Bank loans and overdrafts</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">176</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 7 &#151; Tax on Profit on Ordinary Activities</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Tax charge</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Before major<br> exceptional<br> items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Major<br> exceptional<br> items</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">UK corporation tax at 30% (2001 30%, 2000 30%):</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Current year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">106</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">106</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">236</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Prior years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(129</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(23</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Foreign tax:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Current year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">65</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">65</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Prior years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">112</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">70</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total current tax</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred tax:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Origination and reversal of timing differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Adjustments to estimated recoverable deferred tax assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Prior years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total deferred tax</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tax on profit on ordinary activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">167</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(115</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Further analyzed as tax relating to:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Profit before exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">157</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">157</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">222</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exceptional items (see Note 5):</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-operating</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax (credit)/charge</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">167</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(115</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on the adoption of FRS 19 (see Note
      1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, all tax on exceptional items was in respect of major items (2000 &pound;112 million).</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-31</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-32"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 7 &#151; Tax on Profit on Ordinary Activities &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2"><b>Tax reconciliations</b></font></p>
<p><font face="serif" size="2"><i>Reconciliation of current tax rate</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(%)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">UK corporation tax standard rate</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Permanent differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Capital allowances in excess of depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3.7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2.6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1.0</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other timing differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1.3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1.0</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net effect of different rates of tax in overseas businesses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjustment to tax charge in respect of prior years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2.9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Capital gains</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(20.1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13.6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Effective current tax rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Effective current tax rate before major exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><i>Reconciliation of overall tax rate</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(%)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">UK corporation tax standard rate</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">30.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Permanent
        differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        effect of different rates of tax in overseas businesses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjustment
        to tax charge in respect of prior periods</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6.0</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Capital
        gains</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(0.2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Impact
        of major exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(20.3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13.5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Effective
        tax rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Factors which may affect future tax charges</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The key factors which may affect future tax charges include the availability of accelerated tax depreciation, utilization of unrecognized losses, changes in tax legislation and the proportion of  profits subjected to different overseas tax rates.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future tax charges will also be impacted by the proposed Separation (see Note 33).</font></p>
<p><font face="serif" size="2"><b>Note 8 &#151; Dividends</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(p per share)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends on ordinary shares</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Interim</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">86</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Proposed final</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">305</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">293</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">292</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposed final dividend is payable on the shares in issue at December 20, 2002.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-32</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-33"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 9 &#151; Earnings per Ordinary Share</b></font></p>
<p></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per ordinary share are calculated by dividing the earnings available for shareholders of &pound;457&nbsp;million (2001 &pound;443 million*, 2000 &pound;1,691 million*) by 863 million (2001 863  million, 2000 873 million), being the weighted average number of ordinary shares, excluding investment in own shares, in issue during the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per ordinary share are calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share  options outstanding during the year. The resulting weighted average number of ordinary shares is 867 million (2001 869 million, 2000&nbsp;879&nbsp;million).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted earnings per ordinary share are calculated as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(p per ordinary share)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Basic earnings</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">53.0</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">51.3</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">193.7</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Major exceptional items, less tax thereon</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10.6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(135.3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjusted earnings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">58.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjusted earnings as previously reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">62.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated on adoption of FRS 19 (see Note 1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Adjusted earnings per ordinary share are disclosed
      in order to show performance undistorted by abnormal items.</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-33</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-34"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 10 &#151; Net Cash Flow</b></font></p>
<p></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year
      ended September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total
        operating profit before major exceptional items</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">618</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">792</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">905</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation
        and amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">271</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">238</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">289</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Share
        of associates&#146; operating profit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        non-cash items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings
        before interest, taxation, depreciation and amortization,<br>
        and major exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">885</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,031</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">(Increase)/decrease
        in stocks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">(Increase)/decrease
        in debtors</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(92</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(177</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">(Decrease)/increase
        in creditors</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(94</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">93</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions
        expended &#151; (Note 22)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating
        activities before expenditure relating to major exceptional items</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">737</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,007</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,103</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Major
        operating exceptional expenditure</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(23</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating
        activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">720</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">984</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,103</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        capital expenditure (i) &#151; (Note 12)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(513</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(868</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(654</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Trade
        loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends
        from associates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating
        cash flow &#151; (Note 13)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">483</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        interest paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(62</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(69</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(137</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dividends
        paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(312</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(295</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(290</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tax
        paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(123</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(149</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(158</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Normal
        cash flow</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(290</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(397</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(102</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><div align="left"><font face="serif" size="2">)(ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(752</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(400</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">623</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,234</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        cash flow</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(526</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,732</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents cash flow in respect of capital
      expenditure and financial investment (excluding trade loans), and minor
      acquisitions and disposals (see Consolidated Statement of Cash Flows).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Includes &pound;20 million in respect of Posthouse, the hotel business acquired in April 2001.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-34</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-35"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 11 &#151; Net Debt</b></font></p>
<p></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Cash
      and overdrafts</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Liquid<br>
      resources</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Financing</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cash
      at<br>
      bank and<br>
      in hand</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Overdrafts</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Current<br>
      asset<br>
      investments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other<br>
      borrowings<br>
      due within<br>
      one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other<br>
      borrowings<br>
      due after<br>
      one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=20 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At
        October 1, 1999</b></font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">182</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">(20</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">)</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">162</font></td>
    <td width="2%" align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">333</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">(389</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">)</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">(2,101</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">)</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%" align=right valign=bottom><font face="serif" size="2">(1,995</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        cash flow &#151; (Note 10)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,761</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(29</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,732</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,732</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Management
        of liquid resources and financing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2"> (1,818</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;&#151;</font></div></td>
    <td align=right valign=bottom>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="right"><font face="serif" size="2">&nbsp;(1,818</font></div></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">)(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">501</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">332</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">978</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td><font face="serif" size="2">)</font></td>
 </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td align="left" valign=top> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
    <td valign=top><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        movements arising on:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(34</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(32</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(90</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(114</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
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    <td><hr noshade size="1"></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At
        September 30, 2000</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(49</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">862</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(70</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,213</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(345</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        cash flow &#151; (Note 10)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(538</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(526</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">)(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Management
        of liquid resources and financing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">493</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">493</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(497</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(276</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">186</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(94</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other
        movements arising on acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At
        September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(378</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,019</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,001</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        cash flow &#151; (Note 10)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(276</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(29</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">)(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Management
        of liquid resources and financing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">295</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">295</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">(i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(232</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(414</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">354</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange
        adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td align="left" valign=bottom> <div align="left"><font face="serif" size="2">)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">126</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At
        September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(66</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(782</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(631</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,177</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td align="left"> <div align="left"><font face="serif" size="2">&nbsp;</font></div></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Current asset investments include currency
      swaps.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents a movement in cash and overdrafts of &pound;10 million outflow (2001 &pound;33 million outflow, 2000&nbsp;&pound;86&nbsp;million outflow) (see Consolidated Statement of Cash Flows).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 12 &#151; Net Capital Expenditure</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">259</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">607</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">326</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">227</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">288</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(55</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">513</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">868</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">597</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued operations (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">513</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">868</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">654</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Relates to Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-35</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-36"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 13 &#151; Operating Cash Flow</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Hotels</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(80</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Soft Drinks</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">144</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(74</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">328</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discontinued operations (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">483</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Relates to Bass Brewers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 14 &#151; Management of Liquid Resources and Financing</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September 30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">New borrowings (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,260</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,510</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11,088</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net commercial paper repaid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(184</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other borrowings repaid (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8,200</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5,399</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12,214</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,310</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Ordinary shares issued</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Ordinary shares repurchased</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(103</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Preference shares redeemed</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Financing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,317</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Movement in liquid resources (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">232</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">497</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(501</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">295</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">493</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,818</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Includes amounts rolled over under bank loan facilities.</font></td>
  </tr>
  </table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Liquid resources primarily comprise short-term deposits of less than one year, short-term investments and currency swaps.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-36</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-37"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 15 &#151; Intangible Fixed Assets</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Goodwill</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2001</b></font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Cost:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">195</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Amortization:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Net book value at September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Cost:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">197</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Amortization:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Net book value at September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">173</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-37</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-38"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 16 &#151; Tangible Fixed Assets</b></font></p>
<p><font face="serif" size="2"><b><i>By activity</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Hotels</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Soft<br> Drinks</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Retail</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other<br> activities</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost or valuation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,739</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">412</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">107</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,405</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">898</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">898</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Additions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">593</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">312</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(33</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(39</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(942</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(77</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,091</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">408</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,517</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
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  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">170</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">722</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;On disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(31</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(281</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(347</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">271</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">175</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">139</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,933</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">233</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost or valuation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">408</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,517</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">34</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(87</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(87</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Additions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">362</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">254</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">654</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(110</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(51</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(202</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,333</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">408</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,720</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,492</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">271</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">175</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">139</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">86</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;On disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(29</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(29</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(76</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">448</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">188</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">851</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,885</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,524</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible fixed assets have been written down in total by &pound;113 million following an impairment review of the hotel estate. The impairment has been measured by reference to the value in use  of income-generating units, using discount rates ranging between 10.0% and 11.5% depending on the geographical location of the income-generating unit.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-38</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-39"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 16 &#151; Tangible Fixed Assets &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b><i>By category</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Land and<br> buildings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fixtures,<br> fittings<br> and<br> equipment</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Plant and<br> machinery</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
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  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
   <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost or valuation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,227</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,046</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">132</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,405</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">682</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">216</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">898</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Additions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">510</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">424</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(591</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(488</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,091</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,836</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">722</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;On disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(329</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(347</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">480</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">74</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,718</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost or valuation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,836</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(59</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(28</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(87</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Additions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">381</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">654</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(96</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(101</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(202</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(36</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,450</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">136</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,492</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">480</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">74</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">605</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provided</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;On disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(69</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(76</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">622</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">851</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,759</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,828</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-39</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-40"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 16 &#151; Tangible Fixed Assets &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b><i>Land and buildings</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cost
      or<br>
      valuation</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Depreciation</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net
      book<br>
      value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cost
      or<br>
      valuation</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Depreciation</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net
      book<br>
      value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Freehold</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,692</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(94</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,598</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,666</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,644</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Leasehold:
        unexpired term of<br>
        more than 50 years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">948</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">932</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">924</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">919</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;unexpired
        term of 50 years or less</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">229</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">246</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">222</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(147</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,759</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,836</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(51</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost or valuation of properties comprises:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1999
        valuation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,032</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3,361</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1992
        valuation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,446</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,836</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Properties</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties, comprising land, buildings and certain fixtures, fittings and equipment, are included above at cost or valuation, less depreciation as required. The transitional rules of FRS 15 have  been followed permitting the carrying values of properties as at October 1, 1999 to be retained.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most recent valuation of properties was undertaken in 1999 and covered all properties then owned by the Group other than hotels acquired or constructed in that year and leasehold  properties having an unexpired term of 50 years or less. This valuation was undertaken by external Chartered Surveyors and internationally recognized valuers (Jones Lang LaSalle Hotels in respect  of hotels and Chesterton plc in respect of pubs and other properties) in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. The basis of valuation  was predominantly existing use value and, in the case of pubs and hotels, had regard to trading potential.</font></p>
<p><font face="serif" size="2"><b><i>Historical cost</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The comparable amounts under the historical cost convention for properties would be:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,876</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(199</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(105</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        book value</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,799</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,771</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-40</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-41"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 17 &#151; Fixed Asset Investments</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Investments<br> and<br> advances</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><hr noshade size="1"></td>
    <td width="5%"><hr noshade size="1"></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
    <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">372</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Additions and advances</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Disposals and repayments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">396</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provision for diminution in value:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">123</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions made</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year ended September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">396</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(19</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Additions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Disposals and repayments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">370</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provision for diminution in value:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">On disposals</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">121</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net book value at September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Analysis of investments</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
      <hr noshade size="1">
      </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cost
      less<br>
      amount<br>
      written off</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Market<br>
      value/<br>
      fair value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cost
      less<br>
      amount<br>
      written off</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Market<br>
      value/<br>
      fair value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Listed
        investments (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">119</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unlisted
        investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Includes &pound;31 million (2001 &pound;32 million) in respect of 3.8 million (2001 3.8 million) Six Continents PLC ordinary shares held by employee share trusts.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All listed investments are listed on a recognized investment exchange.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-41</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-42"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 18 &#151; Stocks</b></font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Raw materials</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Work in progress</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Finished goods</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Consumable stores</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The replacement cost of stocks approximates to the value stated above.</font></p>
<p><font face="serif" size="2"><b>Note 19 &#151; Debtors</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Trade debtors</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">339</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">320</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less: Provision for bad and doubtful debts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(50</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(39</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">289</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">281</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other debtors (net of provisions for bad and doubtful debts &pound;5 million<br> (2001 &pound;2 million)) (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">153</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">134</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Corporate taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pension prepayment (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other prepayments (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">103</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">623</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">577</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Other debtors and other prepayments include
      amounts falling due after more than one year of &pound;2 million (2001 nil)
      and &pound;1 million (2001 nil), respectively.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Falling due after more than one year.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 20 &#151; Creditors: amounts falling due within one year</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Borrowings &#151; (Note 23)</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">848</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">415</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Trade creditors</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">198</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Corporate taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">455</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">548</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other taxation and social security</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accrued charges</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">274</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">313</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Proposed dividend</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other creditors</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,273</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,009</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-42</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-43"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 21 &#151; Creditors: amounts falling due after one year</b></font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Borrowings &#151; (Note 23)</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">631</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">1,019</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other creditors and deferred income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">133</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">161</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">764</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,180</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 22 &#151; Deferred Taxation and Other Provisions for Liabilities and Charges</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>Other provisions for liabilities and charges</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Deferred<br> taxation</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Reorganization (i)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Onerous<br> contracts (ii)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other (iii)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At October 1, 2000 as previously reported</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">118</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Prior year adjustment on adoption of FRS 19</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At October 1, 2000 as restated</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">462</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">118</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(45</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Acquisitions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit and loss account</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expenditure</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">487</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">73</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">104</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Profit and loss account</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(54</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expenditure</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exchange and other adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">495</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Relates to fundamental reorganizations charged
      as non-operating exceptional items and is expected to be largely utilized
      in the year to September 30, 2003.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Primarily relates to onerous fixed lease contracts acquired with the InterContinental hotels business and having expiry dates to 2008.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">Represents liabilities with varying expected utilization dates. During the year, disposal provisions no longer required of &pound;48&nbsp;million were released to the profit and loss account as a non- operating exceptional item (see Note 5).</font></td>
  </tr>

</table>
<p><font face="serif" size="2"><b><i>Deferred taxation</i></b></font></p>
<p><font face="serif" size="2"><i>Analyzed as tax on timing differences related to:</i></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001*</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed assets</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">437</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">430</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred gains on loan notes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Losses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(67</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(75</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pension prepayment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(25</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">495</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">487</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">* Restated on the adoption of FRS 19 (see
      Note 1).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-43</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-44"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 22 &#151; Deferred Taxation and Other Provisions for Liabilities and Charges &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deferred tax asset of &pound;67 million (2001 &pound;75 million) recognized in respect of losses includes &pound;30 million (2001 &pound;30 million) of capital losses available to be utilized against the realization  of capital gains which are recognized as a deferred tax liability and &pound;37 million (2001 &pound;45 million) in respect of revenue tax losses. Tax losses with a value of &pound;157 million (2001 &pound;141 million),  including capital losses with a value of &pound;111 million (2001 &pound;104 million), have not been recognized as their use is uncertain or not currently anticipated.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No provision has been made for deferred tax on the sale of properties at their revalued amounts. The total amount unprovided is estimated at &pound;284 million (2001 &pound;317 million).</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No provision has been made for deferred tax on the sale of properties where gains have been, or are expected to be, deferred against expenditure on replacement assets for an indefinite period  until the sale of the replacement assets. The total amount unprovided is estimated at &pound;145 million (2001 &pound;147 million). It is not anticipated that any such tax will be payable in the foreseeable future.</font></p>
<p><font face="serif" size="2"><b>Note 23 &#151; Borrowings</b></font></p>
<p><font face="serif" size="2"><b><i>Analysis of borrowings</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Within<br> one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>After<br> one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Within<br> one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>After<br> one year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Secured bank loans and overdrafts:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Bank loans (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">60</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">136</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unsecured bank loans and overdrafts:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Bank loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">579</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">46</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">625</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">226</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">278</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Overdrafts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bank loans and overdrafts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">649</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">750</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">451</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Secured &#151; other borrowings:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;2016 debenture stock 10.375% (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other debenture stock and loans (iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unsecured &#151; other borrowings:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;2002 Guaranteed Notes 8.125% ($350 million)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;2003 Guaranteed Notes 6.625% ($300 million)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;2007 Guaranteed Notes 5.75% (&pound;250 million)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other loan stock (iv)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">199</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">530</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">729</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">733</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">983</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">848</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">631</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,479</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">415</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,019</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,434</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2"> Secured by way of mortgage over individual hotel properties. The terms, rates of interest and currencies of these bank loans vary.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-44</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-45"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 23 &#151; Borrowings &#151; (Continued)</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2"> Secured by a first floating charge on the assets of the Company and certain of its UK subsidiaries and by cross guarantees given by these subsidiaries.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2"> Secured on the individual assets purchased by using such borrowings. The terms, rates of interest and currencies of these borrowings vary.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2"> Amounts due after more than one year for both September 30, 2002 and 2001, include borrowings of &pound;16&nbsp;million bearing interest at a fixed rate of 4.52%.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average interest rate on overdrafts outstanding at the year end is 5.0% (2001 5.75%). Interest on all other borrowings is at variable rates unless otherwise stated. Interest on the  unsecured bank loans drawn at September 30, 2002 is at a weighted average rate of 2.6% (2001 4.0%). All borrowings are redeemable at par.</font></p>
<p><font face="serif" size="2"><b><i>Analysis by year of repayment</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Bank<br> loans and<br> overdrafts</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other<br> borrowings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Bank<br> loans and<br> overdrafts</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other<br> borrowings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=17 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Within one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">649</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">199</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">848</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">415</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Between one and two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">217</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">204</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">421</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Between two and three years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Between three and four years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Between four and five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thereafter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;By installment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other than by installment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">503</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">521</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">502</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">537</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due after more than one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">101</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">530</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">631</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">286</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">733</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,019</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">750</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">729</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,479</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">451</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">983</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,434</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amounts repayable by installments, some of which fall due after five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">23</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Subsequent to the year end, the Group has repurchased certain other borrowings with a maturity greater than one year with a principal amount outstanding at September 30, 2002 of &pound;258&nbsp;million for a total consideration of &pound;271 million. The Company has also given notice to the holders of its 103/8% Debenture Stock 2016 to redeem the stock on February 27, 2003. See Note 33.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-45</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-46"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 23 &#151; Borrowings &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2"><b><i>Facilities committed by banks</i></b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Utilized</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">684</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%" align=right valign=bottom><font face="serif" size="2">414</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unutilized</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,470</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,628</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,884</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unutilized facilities expire:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Within one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">590</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">225</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">After one year but before two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">809</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">After two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">324</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">436</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">944</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,470</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 24 &#151; Financial Instruments</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following disclosures provide information regarding the effect of financial instruments on the financial assets and liabilities of the Group, other than short-term debtors and creditors.</font></p>
<p><font face="serif" size="2"><b><i>Interest rate risk</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to manage interest rate risk, the Group enters into interest rate swap, interest rate option and forward rate agreements. At September 30, 2002 and September 30, 2001 notional  principal balances and related interest rates under interest rate swaps and forward rate agreements were:</font></p>
<p><font face="serif" size="2"><b>Interest rate swaps and forward rate agreements</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Expected to mature before September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2007</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Thereafter</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair value (i)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$505m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$300m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$250m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$150m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$1,305m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$(51)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.3%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;200m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;250m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;500m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;19m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.3%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;256m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;256m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;(3)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#150;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;25m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;25m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;1m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$700m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$700m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$(11)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$150m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$150m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$300m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$(10)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;115m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;165m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;(2)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.1%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.1%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$370m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$370m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">HK$(8)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents the net present value of the expected cash flows discounted at current market rates of interest.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-46</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-47"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 24 &#151; Financial Instruments &#151; (Continued)</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Contracts entered into before September 30, 2002 and commencing after that date with variable rates to be set in accordance with the contracts on commencement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal indicates the extent of the use of the instrument, but exposure is limited to the interest differential on the principal. At September 30, 2002 the risk was approximately equal to  the fair value shown. The variable interest rates are those prevailing on September 30, 2002.</font></p>
<p><font face="serif" size="2"><b>Interest rate swaps and forward rate agreements</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>Expected to mature before September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Thereafter</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair value (i)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$75m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$300m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$625m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$(21)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.1%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.2%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$2m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;250m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;300m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;9m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.3%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.6%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">DM500m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">DM500m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">DM(7)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;25m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;25m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#8364;(1)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$(1)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Variable rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$580m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$130m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$760m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$(4)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.1%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$150m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$200m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$(2)m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal (ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;200m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;200m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed rate receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Represents the net present value of the expected cash flows discounted at current market rates of interest.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Contracts entered into before September 30, 2001 and commencing after that date with variable rates to be set in accordance with the contracts on commencement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal indicates the extent of use of the instrument, but exposure is limited to the interest rate differential on the principal. At September 30, 2001 the risk was approximately equal to  the fair value shown. The variable interest rates are those prevailing on September 30, 2001.</font></p>
<p><font face="serif" size="2"><b>Interest rate option agreements</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September&nbsp;30, 2002, and 2001, the Group had entered into the following interest rate option agreements:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Principal</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cap rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Swap rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Maturity</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Principal</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cap rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Maturity</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">US dollar swaption &#151;<br> Interest payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$250m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.47%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">US dollar cap &#151;<br> Interest payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.00%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2005</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Australian dollar cap &#151;<br> Interest payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2"> &#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$50m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.92</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2002</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-47</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-48"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 24 &#151; Financial Instruments &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002 and September 30, 2001, the interest rate profile of the Group&#146;s material financial assets and liabilities, after taking account of the interest rate swap agreements and  currency swap agreements detailed above, was:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Interest at fixed rate</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Currency</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Principal</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>average<br> period for</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>swap</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>at variable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>at fixed</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>which rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net debt</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>agreements</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>rate (i)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>rate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>is fixed</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=right valign=bottom><font face="serif" size="1"><b>(%</b></font></td>
    <td valign=bottom><font face="serif" size="1"><b>)</b></font></td>
    <td colspan=2 align=right valign=bottom><font face="serif" size="1"><b>(years</b></font></td>
    <td valign=bottom><font face="serif" size="1"><b>)</b></font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current asset investments and cash at bank and in hand:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Sterling</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,153</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,349</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,349</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;US dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Borrowings:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Sterling</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(532</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(532</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(327</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(205</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;US dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(463</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,490</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,953</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,195</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(758</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Euro</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(183</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(628</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(811</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(598</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(213</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Hong Kong dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(215</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(215</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(158</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(57</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(86</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(121</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(104</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,177</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,177</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">73</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,250</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>At September 30, 2001</b></font></div></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current asset investments and cash at bank and in hand:</font></div></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Sterling</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">352</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">2,111</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">2,463</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;US dollar</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Borrowings:</font></div></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Sterling</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">(547</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(547</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(344</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(203</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;US dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(449</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,552</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,001</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,196</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(805</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Euro</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(168</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(525</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(693</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(420</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(273</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Hong Kong dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(212</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(212</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(212</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other</font></div></td>
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    <td align=right valign=bottom><font face="serif" size="2">(58</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(34</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(92</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(61</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(31</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
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  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(1,001</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(1,001</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">311</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,312</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Primarily based on the relevant inter-bank rate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the Group had investments and advances, excluding shares held by employee share trusts, totaling &pound;218 million (2001 &pound;234 million) on which no interest is receivable  and which do not have a maturity date. These interests are denominated primarily in US dollars.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group had other creditors and deferred income, denominated primarily in US dollars, due after one year of &pound;133 million at September 30, 2002 (2001 &pound;161 million) on which no interest is  payable.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-48</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-49"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 24 &#151; Financial Instruments &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Currency risk</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to manage currency risk, the Group enters into agreements for the forward purchase or sale of foreign currencies as well as currency options. Foreign currency flows in respect of  imports and exports are also netted where practical. As virtually all foreign exchange gains and losses are charged to the Statement of Total&nbsp;Recognized Gains and Losses under the hedging  provisions of Statement of Standard Accounting Practice&nbsp;20 &#151; Foreign Currency Translation, no disclosure of the remaining currency risks has been provided on the grounds of materiality.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the Group had contracted to exchange within one year the equivalent of &pound;35 million (2001 &pound;23 million) of various currencies.</font></p>
<p><font face="serif" size="2"><b>Currency swap agreements</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group had entered into the following currency swap agreements at September 30, 2002 and 2001:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Deposited</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Borrowed</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to US dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;1,518m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;1,573m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$2,331m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">$2,283m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to euro</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;640m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;534m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">999m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">844m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sterling to Australian dollar</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;35m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&pound;34m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">A$100m</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Liquidity risk</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A liquidity analysis of the Group&#146;s borrowings is provided in Note 23, along with details of the Group&#146;s material unutilized committed borrowing facilities.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liquidity analysis of the Group&#146;s other financial liabilities at September 30, 2002 and 2001 is set out below.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Other creditors and deferred income</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;between one and two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;between two and five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;after five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">133</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">161</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-49</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-50"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 24 &#151; Financial Instruments &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Fair values</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net book values and related fair values of the Group&#146;s financial assets and liabilities at September 30, 2002 and September 30, 2001 are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net book<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net book<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed asset investments (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">234</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">206</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and overdrafts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">336</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Currency swap agreements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,413</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,535</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,397</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,496</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net debt</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,177</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,295</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,001</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,100</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other financial liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(133</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(133</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(161</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(161</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest rate swap agreements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Forward exchange contracts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,092</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,264</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(928</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,066</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Excluding shares held by employee share trusts.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of listed fixed asset investments and borrowings are based on market prices at the year end. Other assets and liabilities have been fair valued by discounting expected future  cash flows to present value.</font></p>
<p><font face="serif" size="2"><b><i>Hedges</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group&#146;s unrecognized gains and losses for the year on derivative financial instruments are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Gains</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Losses</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized at October 1, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(8</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Recognized in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Arising in the year but not recognized</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(16</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized at September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Recognized in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Arising in the year but not recognized</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(40</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized at September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(45</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected to be recognized in the year ending September 30, 2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(19</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(10</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected to be recognized thereafter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(26</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Counterparty risk</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group is exposed to loss in the event of non-performance by the counterparties to the above agreements but such non-performance is not expected to occur.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-50</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="pF-51"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 25 &#151; Goodwill eliminated</b></font></p>
<p></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill purchased prior to September 30, 1998 and eliminated against Group reserves is as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Cost of<br> goodwill<br> eliminated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exchange<br> adjustments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Eliminated to October 1, 2000</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,403</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">211</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,614</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Eliminated to September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,403</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,623</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Exchange adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(98</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(98</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Eliminated to September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,403</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">122</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,525</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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</table>
<p><font face="serif" size="2"><b>Note 26 &#151; Major Acquisitions and Disposals</b></font></p>
<p><font face="serif" size="2"><b><i>Year ended September 30, 2000</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the year ended September&nbsp;30, 2000 the Group acquired the business of Southern Pacific Hotels Corporation (&#147;SPHC&#148;), the outstanding 90% of Bristol Hotels &amp; Resorts Inc. (&#147;Bristol&#148;)  and a leisure retail business, comprising 550 pubs formerly owned by Allied Domecq Retailing Ltd.</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Six Continents Hotels (i)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Six Continents<br> Retail (ii)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net<br> book<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value<br> adjustments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net<br> book<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value<br> adjustments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=23 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">920</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">940</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">993</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fixed asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">18</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">72</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Creditors due within one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(86</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(100</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(106</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Creditors due after one year &#150; deferred taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Group&#146;s share of net assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(23</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">925</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">945</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">986</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Consideration:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Ordinary shares (see Statement of changes in Shareholder equity)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(741</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(741</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Cash (iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(196</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">(204</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(17</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(417</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goodwill (iv)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td align=right valign=bottom><font face="serif" size="2">163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
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    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">179</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
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    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Comprises SPHC, acquired in January 2000, and the outstanding 90% of Bristol, acquired in April 2000. The&nbsp;main fair value adjustments reflect the recognition of known liabilities and a reassessment of corporate tax liabilities.</font></td>
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  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">Relates to a leisure retail business comprising 550 pubs formerly owned by Allied Domecq Retailing Ltd., acquired with effect from October 1999. The fair value adjustments primarily relate to the values of the pubs acquired. Earnings before interest, taxation, depreciation and amortization for the 52 weeks ended August&nbsp;21,&nbsp;1999, as extracted from the figures prepared under the accounting policies adopted by Allied&nbsp;Domecq Retailing Ltd. were &pound;102 million.</font></td>
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    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2"> Includes acquisition costs.</font></td>
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    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2"> Goodwill arising in the year is being amortized
      over 20 years.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma effect on earnings of these acquisitions is not significant.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-51</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="pF-52"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 26 &#151; Major Acquisitions and Disposals &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2000, Six Continents completed the sale of its brewing business, Bass Brewers, for a consideration of &pound;2,290&nbsp;million. The overall gain on disposal (net of goodwill and associated  costs) was &pound;1,231 million.</font></p>
<p><font face="serif" size="2"><b><i>Year ended September 30, 2001</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the year the Company acquired the Posthouse hotel business.</font></p>
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  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Net
      book<br>
      value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair
      value<br>
      adjustments</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair
      value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">381</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(381</font></td>
    <td valign=bottom><font face="serif" size="2">) (i)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tangible
        fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,058</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(160</font></td>
    <td valign=bottom><font face="serif" size="2">) (ii)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">898</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current
        assets (excluding cash)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Creditors
        due within one year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">) (iii)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(78</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(38</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred
        taxation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">) (iv)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net
        assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,653</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(619</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,034</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Consideration:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Preference
        shares (v)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(20</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,014</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>

    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=2 valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Posthouse hotel business was acquired on April 4, 2001. The consideration shown includes costs and working capital and net debt adjustments. The main fair value adjustments are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">write off of goodwill arising on a prior transaction;</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(ii)</font></td>
    <td><font face="serif" size="2">revaluation of hotels;</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iii)</font></td>
    <td><font face="serif" size="2">reassessment of creditors including corporate tax and other acquired liabilities; and</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(iv)</font></td>
    <td><font face="serif" size="2">reassessment of the deferred taxation effect of all timing differences including those relating to fair value adjustments.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(v)</font></td>
    <td><font face="serif" size="2">Preference shares were issued by a subsidiary undertaking.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the period October 1, 2000 to the date of acquisition and for its preceding financial year ended September 30, 2000, the Posthouse business generated operating profit of &pound;40 million and  &pound;80 million respectively.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma effect on earnings of this acquisition is not significant.</font></p>
<p><font face="serif" size="2"><b><i>Year ended September 30, 2002</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no major acquisitions or disposals in the year ended September 30, 2002.</font></p>
<p><font face="serif" size="2"><b>Note 27 &#151; Share Options</b></font></p>
<p><font face="serif" size="2"><b><i>Executive Share Option Scheme</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Six Continents Executive Share Option Scheme 1995 (the &#147;New Scheme&#148;) introduced in 1995, succeeded the Six Continents Executive Share Option Scheme (the &#147;Old Scheme&#148;). Under  the terms of the New Scheme, the Remuneration Committee, consisting solely of non-executive directors, may select employees, including executive directors, of the Group, for the grant of options  to acquire ordinary shares in the Company.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-52</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-53"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC<br>
  <br>
  NOTES TO THE FINANCIAL STATEMENTS &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 27 &#151; Share Options &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">The option price will not be less than the market value of an ordinary share, or the nominal value if higher. The market value will be the  quoted price on the business day preceding the date of grant, or the average of the middle market quoted prices on the three consecutive  dealing days immediately preceding the date of grant or such other day as the Inland Revenue may agree. The exercise of options under  the New Scheme is subject to the achievement of a performance condition. The International Schedule to the New Scheme extends it to  executives outside the United Kingdom. No further options may be granted under the Old Scheme.</font></p>
<p><font face="serif" size="2"><b><i>Sharesave Scheme</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Six Continents Sharesave Scheme 2002 (the &#147;2002 Scheme&#148;) was introduced in 2002 and succeeded the Six Continents Employee Savings Share Scheme 1992 (the &#147;1992 Scheme&#148;). The  2002 Scheme is available to all employees (including executive directors) employed by participating Group companies provided they have been employed for at least one year. The 2002 Scheme  provides for the grant of options to subscribe for ordinary shares at the higher of the nominal value and not less than 80% of the average of the middle market quotations of the ordinary shares on the  three dealing days preceding the date of invitation. No further options may be granted under the 1992 Scheme.</font></p>
<p><font face="serif" size="2"><b><i>Employee Profit Share Scheme</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employee Profit Share Scheme (the &#147;UK Profit Scheme&#148;) is available to all UK employees (including executive directors) employed by participating Group companies, provided they  have at least three years continuous service. The directors have discretion to offer participation in the UK Profit Scheme to non-UK employees. The board may elect to allocate a percentage of profits  before tax to the UK Profit Scheme. Any such profits so allocated are used to purchase ordinary shares, which are then divided among participants in proportion to their earnings. The UK  Government has decided to withdraw Profit Share Schemes and no allocations of profit under the UK Profit Scheme will be possible after 2002.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary shares are held by the Trustees of the Irish Profit Sharing Scheme (the &#147;Irish Profit Scheme&#148;) on behalf of participants. Following the disposal of Bass Brewers in August 2000, the  Group has no employees who are eligible to participate in the Irish Profit Scheme and no further allocations of profit will be made.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total number of ordinary shares which may be issued or are issuable in any ten-year period under any employee share scheme operated by the Company may not exceed 10% of the issued  ordinary share capital from time to time. In addition, options may not be granted under the New Scheme in any successive period of five calendar years commencing on January 1, 1995 in excess of  5% of the ordinary share capital of the Company in issue from time to time.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-53</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-54"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 27 &#151; Share Options &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Movements in the options outstanding under these schemes for the three years ended September 30, 2002 are as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Six Continents Employee<br> Savings Share Schemes</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Six Continents Executive<br> Share Option Schemes</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Range of<br> option prices</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Range of<br> option prices</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at October 1, 1999</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.4-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,791</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">598.0-598.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,083</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">597.0-769.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,266</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(155</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.4-605.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,277</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">520.0-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2000</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,637</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.4-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,061</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">626.0-626.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,651</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">723.0-723.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,345</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(375</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">476.6-746.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,021</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(267</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">597.0-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,073</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">400.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,646</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.4-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,883</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">600.0-600.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,308</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">700.0-700.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(285</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">400.0-734.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(198</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505.0-746.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(876</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">400.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,109</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.4-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">470.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22,647</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505.0-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options exercisable:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">384</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">470.0-734.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,052</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">505.0-1,014.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">400.0-886.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,790</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.5-851.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">367.0-640.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">469.5-851.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Fair value of options granted during the year ended:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">122.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">160.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">165.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">142.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">153.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average fair values of options granted were estimated using the Black-Scholes option pricing model with the following assumptions: dividend yield of 5% (2001 5%, 2000 5%)  expected volatility of 26% (2001 32%, 2000 28%), risk free interest rate of 5% (2001 6%, 2000 6%) and expected life of 3 or 5 years (2001&nbsp;5&nbsp;years, 2000 5 years).</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-54</font></p>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<a name="pF-55"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 27 &#151; Share Options &#151; (Continued)</b></font></p>
<p></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Movements in the options outstanding under the option schemes for the three years ended September 30, 2002 and the related weighted average option prices are as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Six Continents<br> Employee Savings<br> Share Schemes</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Six Continents Executive<br> Share Option Schemes</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>No. of<br> shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted<br> average<br> option price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b><br> No. of<br> shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted<br> average<br> option price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at October 1, 1999</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">627.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">810.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,791</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">598.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8,083</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">598.1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(2,266</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">452.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(155</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">527.8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,277</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">724.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(305</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">736.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2000</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">657.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16,637</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">711.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,061</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">626.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,651</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">723.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,345</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">568.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(375</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">578.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,021</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(267</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">785.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,073</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">641.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20,646</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">715.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,883</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">600.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,308</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">700.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(285</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">474.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(198</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">600.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Lapsed or canceled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(876</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">673.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3,109</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">720.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options outstanding at September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">629.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22,647</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Options exercisable:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">384</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">665.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,052</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">848.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">624.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,790</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">759.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">518.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">759.3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summarized information about options outstanding under the share option schemes is as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Options outstanding</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>Options exercisable</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Range
        of exercise prices (pence)</b><br>
        </font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Number<br> outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted<br> average<br> remaining<br> contract life</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted<br> average<br> option price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Number<br> exercisable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Weighted<br> average<br> option price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">
      <hr align="left" width="150" size="1" noshade>
      </font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(years)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(000)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(pence)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Six Continents Employee Savings Share Schemes</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">470.0 to 508.0</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">0.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">470.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">470.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">508.1 to 654.0</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,162</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">609.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">180</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">640.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">654.1 to 886.0</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">598</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1.6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">779.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">168</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">734.0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">629.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">384</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">665.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><i>Six Continents Executive Share<br> Option Schemes</i></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">505.0 to 605.0</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">594.4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">329</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">539.2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">605.1 to 851.5</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">14,111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">741.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,570</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">813.9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">851.6 to 1014.5</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,153</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,104.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,153</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,104.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22,647</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7.5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4,052</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">848.7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-55</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-56"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 28 &#151; Financial Commitments</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group has annual commitments under operating leases which expire as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Properties</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Properties</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Other</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Within one year</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Between one and five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">After five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commitments under non-cancellable operating leases at September 30, 2002 are as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30<br> 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Due within one year</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">One to two years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Two to three years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Three to four years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">80</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Four to five years</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thereafter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,569</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,010</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are a number of property and equipment leases used in the Group&#146;s operations where, in addition to a specified minimum rental, the leases provide for contingent rentals based on  percentages of revenue. The average remaining term of these leases, which generally contain renewal options, is approximately 12 years. No material restrictions or guarantees exist in the Group&#146;s  lease obligations.</font></p>
<p><font face="serif" size="2"><b>Note 29 &#151; Contracts for Expenditure on Fixed Assets</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Contracts placed for expenditure on fixed assets not<br> provided for in the financial statements</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">314</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">106</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b>Note 30 &#151; Contingencies</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingent liabilities not provided for in the financial statements relate to:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Guarantees</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">96</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">122</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. It is the view of the directors that, other  than to the extent that  liabilities have been provided for in these financial statements, such guarantees are not expected to result in financial loss to the Group.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-56</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-57"></a>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 30 &#151; Contingencies &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group has given warranties in respect of the disposal of certain of its former subsidiaries. It is the view of the directors that, other than to the extent that liabilities have been provided for  in these financial statements, such warranties are not expected to result in financial loss to the Group.</font></p>
<p><font face="serif" size="2"><b>Note 31 &#151; Companies Act 1985</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These financial statements do not comprise the Company&#146;s &#147;statutory accounts&#148; within the meaning of Section 240 of the Companies Act 1985 of Great Britain. Statutory accounts for the  year ended September 30, 2002 will be delivered to the Registrar of Companies for England and Wales in due course and statutory accounts for the years ended September 30, 2001 and 2000 have  been so delivered. The auditors&#146; reports on such accounts were unqualified.</font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group&#146;s financial statements are prepared in accordance with accounting principles generally accepted in the United Kingdom (UK GAAP) which differ from those generally accepted in  the United States (US GAAP). The significant differences, as they apply to the Group, are summarized below.</font></p>
<p><font face="serif" size="2"><b><i>Classification of borrowings</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under US GAAP the amounts shown as repayable after one year for unsecured bank loans and overdrafts drawn under or supported by bank facilities with maturities of up to five years and  amounting to &pound;46 million (2001 &pound;226 million, 2000 &pound;61 million) would be classified as current liabilities.</font></p>
<p><font face="serif" size="2"><b><i>Pension costs</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group provides for the cost of retirement benefits based upon consistent percentages of employees&#146; pensionable pay as recommended by independent qualified actuaries. Under US  GAAP, the projected benefit obligation (pension liability) in respect of the Group&#146;s two principal pension plans would be matched against the fair value of the plans&#146; assets and would be adjusted to  reflect any unrecognized obligations or assets in determining the pension cost or credit for the year.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the accumulated benefit obligations exceeded the fair value of the plans&#146; assets. In these circumstances, US GAAP requires the recognition of the difference as a  balance sheet liability and the elimination of any amounts previously recognized as a prepaid pension cost. An equal amount, not exceeding the amount of unrecognized past service cost, is  recognized as an intangible asset with the balance reported in other comprehensive income.</font></p>
<p><font face="serif" size="2"><b><i>Intangible fixed assets</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and separately identifiable intangible fixed assets arising on the acquisition of subsidiaries and associates are capitalized and amortized over their estimated useful lives. Goodwill  arising on acquisitions prior to September 30, 1998 was eliminated against shareholders&#146; funds. Under US GAAP, all intangible fixed assets would be capitalized and amortized to the income  statement over their estimated useful lives, not exceeding 40 years. Under US GAAP, goodwill arising on acquisitions after June 30, 2001 is not amortized but is subject to an annual impairment test.  The reconciling adjustments to net income in respect of amortization and to shareholders&#146; equity in respect of intangible fixed assets relate almost entirely to Six Continents Hotels.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under UK GAAP, where the amount of purchase consideration is contingent on a future event, the cost of acquisition includes a reasonable estimate of the amount expected to be payable in  the future. Under US GAAP, contingent consideration is not recognized until the related contingencies are resolved.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-57</font></p>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Tangible fixed assets</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to October 1, 1999, the Group&#146;s properties were valued from time to time by professionally qualified external valuers. Book values were adjusted to accord with the valuations, except  where a directors&#146; valuation was deemed more appropriate. Under US GAAP, revaluations would not have been permitted.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation is based on the book value of assets, including revaluation where appropriate. Prior to October&nbsp;1, 1999, freehold pubs and hotels were not depreciated under UK GAAP, as any  charge would have been immaterial given that such properties were maintained, as a matter of policy, by a program of repair and maintenance such that their residual values were at least equal to  their book values. Following the introduction of FRS 15, which was implemented by the Group with effect from October 1, 1999, all properties are depreciated under UK GAAP. There is now no  difference between UK GAAP and US GAAP with regard to depreciation policies.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under UK GAAP, the impairment of tangible fixed assets is measured by reference to discounted cash flows. Under US GAAP, if the carrying value of assets is supported by undiscounted  cash flows, there would be no impairment.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciling adjustment to shareholders&#146; funds in respect of tangible fixed assets relates primarily to Six&nbsp;Continents Retail.</font></p>
<p><font face="serif" size="2"><b><i>Staff costs</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group charges to net income the cost of shares acquired to settle awards under certain incentive schemes. The charge is based on an apportionment of the cost of shares over the period of  the scheme. Under US GAAP, these awards would be accounted for as variable plans and the charge would be based on the intrinsic value of the shares using the share price at the balance sheet date.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A charge would also be made under US GAAP based on the intrinsic value at the date of grant of options under the Group&#146;s Employee Savings Share Scheme and the charge would be  recognized over the period of the savings contracts. Since January&nbsp;24, 2002, an employer&#146;s offer to enter into new contracts at a lower exercise price than the price under existing contracts, causes  variable plan accounting to apply in respect of certain options. This could result in an additional charge for those options that qualify for variable plan accounting.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under US GAAP, a charge would also be made in respect of option grants under the Group&#146;s Executive Share Option Schemes. Variable plan accounting would apply and the charge would be  recognized over the period of the schemes.</font></p>
<p><font face="serif" size="2"><b><i>Provisions</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in provisions for liabilities and charges are amounts which relate to the restructuring of certain of the Group&#146;s operations. Under US GAAP, certain of these amounts would be  charged to net income as incurred.</font></p>
<p><font face="serif" size="2"><b><i>Deferred taxation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group provides for deferred taxation in respect of timing differences, subject to certain exceptions, between the recognition of gains and losses in the financial statements and for tax  purposes. Timing differences recognized, include accelerated capital allowances, unrelieved tax losses and short-term timing differences. Under US GAAP, deferred taxation would be computed on  all differences between the tax bases and book values of assets and liabilities which will result in taxable or tax deductible amounts arising in future years.</font></p>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-58</font></p>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Fixed asset investments</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in investments and advances are amounts in respect of Six Continents PLC ordinary shares held by employee share trusts. Under US GAAP, these amounts would be treated as  Treasury Stock and deducted from shareholders&#146; equity.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed asset investments are stated at cost less any provision for diminution in value. Under US GAAP, these investments are recorded at market value and unrealized gains and losses are  reported in other comprehensive income.</font></p>
<p><font face="serif" size="2"><b><i>Derivative instruments and hedging</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under US GAAP, all derivative instruments (including those embedded in other contracts) are recognized on the balance sheet at their fair values. Changes in fair value are recognized in net  income unless specific hedge criteria are met. If a derivative qualifies for hedge accounting as defined under US GAAP, changes in fair value are recognized periodically in net income or in  shareholders&#146; equity as a component of other comprehensive income depending on whether the derivative qualifies as a fair value or cash flow hedge. Substantially all derivatives held by the Group  during the year did not qualify for hedge accounting under US GAAP as the documentation supporting the hedge transaction was not sufficient to meet the standards required by FAS 133.</font></p>
<p><font face="serif" size="2"><b><i>Proposed dividends</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Final ordinary dividends are provided for in the year in respect of which they are proposed by the Board for approval by the shareholders. Under US GAAP, dividends would not be provided  for until the year in which they are declared.</font></p>
<p><font face="serif" size="2"><b><i>Discontinued operations</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under US GAAP, discontinued operations (which must have been previously reported business segments) would be recognized at the time management commits itself to a formal plan. Under  UK GAAP, recognition does not occur unless the discontinuance has been completed before the earlier of three months after the balance sheet date or the date on which the financial statements are  approved.</font></p>
<p><font face="serif" size="2"><b><i>Exceptional items</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain exceptional items are shown on the face of the profit and loss account statement after operating profit. These items are mainly gains or losses on the sale of businesses and fixed assets,  and the costs of fundamental reorganizations. Under US GAAP these items would be classified as operating profit or expenses.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-59</font></p>
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<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Net income under US GAAP</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The significant adjustments required to convert earnings available for shareholders in accordance with UK&nbsp;GAAP to net income in accordance with US GAAP are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b><i>Income</i></b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million, except per ADS amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings available for shareholders in accordance with UK GAAP</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">457</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">443</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjustments:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Pension costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(21</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">78</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Amortization of intangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(101</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(104</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(105</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Disposal of tangible and intangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">339</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">51</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Impairment of tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">77</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provisions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Staff costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Change in fair value of derivatives (iv)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">79</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Deferred taxation: on above adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;methodology</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(13</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">262</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority share of above adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Net income in accordance with US GAAP</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">453</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Comprising:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Discontinued operations (i): result for the period</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">172</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">491</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">313</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;surplus on disposal of Bass Brewers and other businesses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Net income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">453</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Basic net income per ordinary share and American Depositary Share (&#147;ADS&#148;)&nbsp;(ii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.8p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.1p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.3p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.7p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59.8p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">178.1p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.5p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81.9p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">194.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Diluted net income per ordinary share and ADS&nbsp;(iii)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.0p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.1p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">39.5p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">176.9p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">52.2p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81.4p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">193.0p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated:</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">(a) to reflect the adoption of FRS 19 under UK GAAP for 2001 and 2000 with no effect on net income reported under US GAAP; and</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">(b) to revise the calculations of the US GAAP adjustments in 2001 for profit on disposal of fixed assets and the change in the fair value of derivatives by &pound;37 million (&pound;26 million after tax) and &pound;26 million (&pound;18 million after tax), respectively. These restatements have reduced income from continuing operations by &pound;18&nbsp;million (2.1p per basic ordinary share and basic ADS and 2.1p per diluted ordinary share and diluted ADS) income from discontinued operations by &pound;26 million (3.0p per basic ordinary share and basic ADS and 3.0p per diluted ordinary share and diluted ADS) and net income by &pound;44 million (5.1p per basic ordinary share and basic ADS and 5.1p per diluted ordinary share and diluted ADS).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-60</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-61"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(i)&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;The Six Continents Retail business,
      which is subject to the demerger proposals (see Note 33), is a discontinued
      operation under US GAAP. Other discontinued businesses comprise Bass Brewers
      which was sold in August 2000.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(ii)&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">Calculated by dividing net income in accordance
      with US GAAP of &pound;453 million (2001 &pound;707 million, 2000 &pound;1,697
      million), by 863 million (2001 863 million, 2000 873 million) shares, being
      the weighted average number of ordinary shares in issue during the year.
      Each American Depositary Share represents one ordinary share.</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(iii)&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">Calculated by adjusting basic net income in
      accordance with US GAAP to reflect the notional exercise of the weighted
      average number of dilutive ordinary share options outstanding during the
      year. The resulting weighted average number of ordinary shares is 867 million
      (2001 869 million, 2000 879 million).</font></td>
  </tr>

</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="serif" size="2">(iv)&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">Comprises net gains in the fair value of derivatives
      that do not qualify for hedge accounting of &pound;75 million (2001 &pound;12
      million losses) and net gains reclassified from other comprehensive income
      of &pound;4&nbsp;million (2001 &pound;7&nbsp;million).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Comprehensive income</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income under US GAAP is as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income in accordance with US GAAP</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">453</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">707</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other comprehensive income:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Minimum pension liability, net of tax of &pound;108 million</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(253</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Change in valuation of marketable securities, net of tax<br>of nil million (2001 &pound;9 million credit, 2000 &pound;9 million charge)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Change in fair value of derivatives, net of tax of &pound;1 million<br>(2001&nbsp;&pound;2&nbsp;million)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Cumulative effect on prior years of adoption of FAS 133</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Currency translation differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(107</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(364</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Comprehensive income in accordance with US GAAP</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">651</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,753</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated to reflect the change in the fair
      value of derivatives and the profit on disposal of fixed assets (see page
      F-60).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-61</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-62"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Movements in other comprehensive income amounts (net of related tax) are as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Minimum<br> pension<br> liability<br> adjustment</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Change in<br> valuation of<br> marketable<br> securities</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Derivative<br> financial<br> instruments<br> gains/ (losses)<br> restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b><br> Currency<br> translation<br> differences*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Movement in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">56</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">248</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">276</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Effect on adoption of FAS 133</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(22</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(6</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Movement in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(56</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(50</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(28</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">237</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">220</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Movement in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(253</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(107</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(364</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(253</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(29</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(144</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated to reflect the change in the fair
      value of derivatives (see page F-60).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-62</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-63"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Shareholders&#146; equity under US GAAP</i></b></font></p>
<p><font face="serif" size="2">The significant adjustments required to convert shareholders&#146; funds in accordance with UK GAAP to shareholders&#146; equity in accordance with US GAAP are:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td>&nbsp;</td>
    <td colspan=2 align=center valign=bottom><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td colspan=2 align=center valign=bottom><hr noshade size="1"></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001<br>
      restated*</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Shareholders&#146;
        funds in accordance with UK GAAP</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Adjustments:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Intangible
        fixed assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost:
        goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,285</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
        amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(947</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(896</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,371</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,590</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension
        intangible fixed asset</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        intangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,395</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2,590</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Tangible
        fixed assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(956</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,004</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
        depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(133</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(211</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        tangible fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,089</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,215</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Fixed
        asset investments:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments
        and advances</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(60</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(61</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Current
        assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension
        prepayment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(82</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">89</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Creditors:
        amounts falling due within one year:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposed
        dividends</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">207</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staff
        costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(3</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(4</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Creditors:
        amounts falling due after one year:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(20</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Provisions
        for liabilities and charges:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
        pension cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(235</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
        taxation: on above adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(206</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(330</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;methodology</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(214</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(171</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">726</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,116</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority
        share of above adjustments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(58</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(61</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">668</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,055</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Shareholders&#146;
        equity in accordance with US GAAP</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,034</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6,240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr><tr valign=top>
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><font face="serif" size="2">Restated (a) to reflect the adoption of FRS&nbsp;19 under UK GAAP with no net effect on shareholders&#146; equity reported under US GAAP and (b) to reflect the adjustments for tangible fixed assets and derivatives referred to on page F-60 which have reduced previously reported shareholders&#146; equity under US GAAP by &pound;30&nbsp;million.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p></p>
<p align=center><font face="serif" size="2">F-63</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-64"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Additional information required by US GAAP in respect of earnings per share</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the computation of basic and diluted earnings per share from continuing operations under US GAAP:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million, except per share<br> and ADS amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Numerator:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Numerator for basic and diluted earnings per ordinary<br> share and ADS &#151; continuing activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Denominator:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Denominator for basic earnings per ordinary share and ADS</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">863</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">863</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Effect of dilutive securities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Employee share options</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Denominator for diluted earnings per ordinary share and ADS</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">867</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">869</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">879</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Basic earnings per ordinary share and ADS from continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.8</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.3</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Diluted earnings per ordinary share and ADS from continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12.7</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22.0</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16.1</font></td>
    <td valign=bottom><font face="serif" size="2">p</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Consolidated statement of cash flows</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated statement of cash flows prepared under UK GAAP presents substantially the same information as that required under US GAAP but may differ, with regard to classification  of items within the statements and as regards the definition of cash under UK GAAP and cash and cash equivalents under US GAAP.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;US GAAP requires, cash and cash equivalents include short-term highly liquid investments but do not include bank overdrafts. Under UK GAAP, cash flows are presented separately for  operating activities, dividends received from associates, returns on investments and servicing of finance, taxation, capital expenditure and financial investment, acquisitions, equity dividends and  management of liquid resources and financing. US&nbsp;GAAP, however, require only three categories of cash flow activity to be reported: operating, investing and financing. Cash flows from taxation  and returns on investments and servicing of finance shown under UK GAAP would, with the exception of dividends paid to minority shareholders, be included as operating activities under US  GAAP. The payment of dividends would be included as a financing activity under US GAAP. Under US&nbsp;GAAP, capitalized interest is treated as part of the cost of the asset to which it relates an
d is  thus included as part of investing cash flows. Under UK GAAP all interest is treated as part of returns on investments and servicing of finance. Under US GAAP capital expenditure and financial  investment and acquisitions are reported within investing activities.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-64</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="pF-65"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The categories of cash flow activity under US GAAP can be summarized as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash inflow from operating activities</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">535</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">766</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">819</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash (outflow)/inflow on investing activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(320</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,169</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash outflow from financing activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(220</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(311</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,578</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">(Decrease)/increase in cash and cash equivalents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(5</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(714</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">431</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Effect of foreign exchange rate changes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">82</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(12</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">28</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;At start of the fiscal year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">950</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">491</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;At September&nbsp;30</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">301</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">224</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">950</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Additional information required by US GAAP in respect of the Group&#146;s two principal pension plans</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pension cost for these plans computed in accordance with the requirements of US GAAP comprises:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Service cost</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">30</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">29</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">47</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">59</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actual return on plan assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(76</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(170</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(269</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net amortization and deferral</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">FAS 88 settlement charge related to sale of Bass Brewers</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(35</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net periodic pension cost/(credit)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(19</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The major assumptions used in computing the pension expense were:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=8 align=center valign=bottom><font face="serif" size="1"><b>Year ended September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected long-term rate of return on plan assets</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">7.0</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">%</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">7.0</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">%</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align=right valign=bottom><font face="serif" size="2">6.5</font></td>
    <td width="2%" valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Discount rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5.5</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.1</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected long-term rate of earnings increases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.8</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3.9</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4.0</font></td>
    <td valign=bottom><font face="serif" size="2">%</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-65</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-66"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six<br> Continents<br> Pension<br> Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six<br> Continents<br> Executive<br> Pension<br> Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b><br> Six<br> Continents<br> Pension<br> Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six<br> Continents<br> Executive<br> Pension<br> Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accumulated benefit obligation (all vested)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">922</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">292</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">784</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">242</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fair value of plan assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">747</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">829</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">269</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Projected benefit obligation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(989</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(322</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(840</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(267</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net plan (obligation)/assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(242</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(73</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized transitional (asset)/obligation, net of amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized prior service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unrecognized net loss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">372</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">81</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">138</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net amount recognized</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">138</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">The amounts recognized in the balance sheet consist of:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Prepaid pension cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accrued pension cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(189</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(46</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Intangible asset</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other comprehensive income (before tax)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">308</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">54</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net amount recognized</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">138</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">130</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assets of these plans principally comprise UK and other listed equities, property investments, bank deposits and UK Government index-linked stocks.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-66</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-67"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table
  sets forth movements in the fair value of plan assets:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six
      Continents<br>
      Pension Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six
      Continents<br>
      Executive<br>
      Pension Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At
        October 1, 1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,784</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">406</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Contributions
        payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related
        national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits
        paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(73</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected
        return on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">110</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial
        gain on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Inter-Continental
        transfer-in</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">FAS
        88 adjustment related to sale of Bass Brewers</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(988</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(155</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At
        September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">912</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">301</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Contributions
        payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related
        national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits
        paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(34</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected
        return on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial
        loss on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(126</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(43</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At
        September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">829</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">269</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Contributions
        payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related
        national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits
        paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Expected
        return on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial
        loss on assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(130</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(41</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At
        September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">747</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">
      <hr noshade size="2">
      </font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="serif" size="2">F-67</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-68"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth movements in the projected benefit obligation of the principal plans:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six Continents<br> Pension Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Six Continents<br> Executive<br> Pension Plan</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At October 1, 1999</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,550</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">349</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Members contributions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Inter-Continental transfer-in</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(73</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(14</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">4</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial loss arising in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">2</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">FAS 88 adjustment related to sale of Bass Brewers</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(851</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(128</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2000</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">784</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">251</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">8</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Members contributions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">5</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">45</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(34</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial loss arising in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">7</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2001</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">840</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">267</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Service cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Members contributions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">6</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Benefits paid</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(37</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Age-related national insurance rebates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Actuarial loss arising in the year</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">At September 30, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">322</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2"><hr noshade size="2"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>Additional information required by US GAAP in respect of Group&#146;s share options</i></b></font></p>
<p><font face="serif" size="2"><b><i>Accounting and disclosure of stock-based compensation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAS 123 &#151; Accounting for Stock-Based Compensation, established accounting disclosure standards for stock-based employee compensation plans. The statement gives companies the option  of continuing to account for such costs under the intrinsic value accounting provisions set out in Accounting Principles Board Opinion 25, &#147;Accounting for Stock Issued to Employees&#148; (APB 25) and  related interpretations. The Group has chosen to continue to account for such costs under APB 25. Had the Group chosen to account for such costs under FAS 123, net income for the year ended  September 30, 2002 would have been &pound;451 million (2001 &pound;703 million, 2000&nbsp;&pound;1,693&nbsp;million), basic net income per ordinary share and ADS would have been 52.3p (2001 81.5p, 2000 193.9p) and  diluted net income per ordinary share and ADS would have been 52.0p (2001&nbsp;80.9p, 2000 192.6p). Details of the fair values of stock awards in the year are give
n in Note 27. Because options vest  over several years and additional options grants are expected, the effects of these hypothetical calculations are not likely to be representative of similar future calculations.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-68</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-69"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2"><b><i>Concentrations of credit risk</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potential concentrations of credit risk to the Group consist principally of short-term cash investments, trade loans and trade debtors.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Group only deposits short-term cash surpluses with counterparties with an A credit rating or better, or those providing adequate security and, by policy, limits the amount of credit  exposure to any one bank or institution. Trade debtors in the United Kingdom comprise a large, widespread customer base. Trade debtors in the United States are widely dispersed and include a  significant amount of debtors due from Six Continents Hotels franchisees.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2002, the Group did not consider there to be any significant concentration of credit risk.</font></p>
<p><font face="serif" size="2"><b><i>Fair values of financial instruments</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is presented in compliance with the requirements of US GAAP. The carrying amounts and fair values of the material financial instruments of the Group are as  follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2002</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>2001</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Carrying<br> amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Carrying<br> amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Fair<br> value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=11 align=center valign=bottom><font face="serif" size="1"><b>(&pound; million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Assets</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current asset investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">222</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Listed investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">147</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">155</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">119</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unlisted investments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">102</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">111</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Liabilities</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Loan capital and noncurrent bank loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(830</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(952</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,269</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1,368</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Bank loans and overdrafts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(649</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(649</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(165</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(165</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Off-balance sheet instruments</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest rate swaps</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(24</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(11</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Foreign exchange contracts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following methods and assumptions were used by the Group in establishing its fair value disclosures for financial instruments:</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Cash: </i>the carrying amount reported in the balance sheet for cash at bank approximates to its fair value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Current asset investments: </i>the carrying amount reported in the balance sheet for current asset investments approximates their fair value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Listed investments: </i>these investments are valued based on market prices.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Unlisted investments: </i>the fair value of these investments approximates their replacement cost.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Trade loans and advances: </i>the fair value of these loans and advances, taking into account the related commitments to purchase Six Continents products, approximates their carrying value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Borrowings: </i>the fair value of the Group&#146;s loan capital and noncurrent bank loans (including short-term portion) are estimated using quoted prices, or where such prices are not available,  discounted cash flow analyses,</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-69</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-70"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">based on available market rates of interest for similar types of arrangements and maturities. The carrying amount of the bank loans and  overdrafts approximates their fair value.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Off-balance sheet instruments: </i>the fair value of the Group&#146;s interest rate swaps is based on discounted cash flow analyses. The fair value of other instruments is based on contracted and  relevant exchange rates.</font></p>
<p><font face="serif" size="2"><b><i>Additional information required by US GAAP in respect of deferred taxation</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The analysis of the deferred taxation liability required by US GAAP is as follows:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>September</b>&nbsp;<b>30</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=5 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td valign=bottom><font face="serif" size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred taxation liabilities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Excess of book value over taxation value of fixed assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">886</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">871</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other temporary differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">243</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">277</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1,148</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred taxation assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Taxation effect of losses carried forward</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(67</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(50</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Taxation effect of pension cost liability</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(87</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Other temporary differences</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(60</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(110</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(214</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(160</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">915</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">988</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Of which:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Current</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(18</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(1</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;Noncurrent</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">933</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="1"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">915</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">988</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan=2 valign=bottom><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2"><b><i>New Accounting Standards</i></b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAS 141, Business Combinations, and FAS 142, Goodwill and Other Intangible Assets, both issued in June 2001, are effective for accounting periods beginning after December 15, 2001. The  Company will apply Statement 142 from October 1, 2002. Under the new rules, goodwill and intangible assets deemed to have indefinite lives will no longer be amortized but will be subject to  annual impairment tests. Other intangible assets will continue to be amortized over their useful lives.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most of the Group&#146;s goodwill and indefinite lived assets arose prior to September 30, 1998 and have been eliminated against reserves in the Group&#146;s UK Statutory accounts. No amortization is  charged in respect of these assets in the UK statutory accounts but a charge has been made to arrive at net income under US GAAP. The adoption of FAS 141 will eliminate the reconciling  amortization charge in respect of goodwill and indefinite lived intangibles and will increase net income under US GAAP by approximately &pound;55 million per annum. In the year ending September 30,  2003 the Group will test goodwill and indefinite lived intangible assets for impairment using the two step process described in Statement 142. The first step screens potential impairment, while the  second measures the amount of impairment, if any. Until the impairment tests are completed it is not possible to quantify the amount of impairment, if any, that will arise on ad
option.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAS 144, Accounting for the Impairment or Disposal of Long-Lived Assets, issued in August 2001, is effective for accounting periods beginning after December 15, 2001. FAS 144  supersedes FAS 121 and, while retaining many of the recognition and measurement provisions of FAS 121, it excludes goodwill and intangible</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-70</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pF-71"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>NOTES TO THE FINANCIAL STATEMENTS
  &#151; (Continued)</b></font></p>
<p><font face="serif" size="2"><b>Note 32 &#151; Differences between United Kingdom and United States Generally Accepted Accounting Principles &#151; (Continued)</b></font></p>

<p><font face="serif" size="2">assets not being amortized from its impairment provisions and it significantly changes the criteria that have to be met in order to classify  long-lived assets as held-for-sale. FAS 144 also supersedes the provisions of APB 30 with regard to reporting the effects of a disposal of a  business segment and requires expected future operating losses from discontinued operations to be reported in the periods in which the  losses are incurred rather than as of the measurement date. In addition, more dispositions will qualify for discontinued operations treatment  in the income statement. The Group will adopt FAS 144 in the year ending September 30, 2003. As the provisions of FAS 144 are to be  applied prospectively, the impact on the Group, if any, will depend upon the circumstances existing at that time.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAS 146, Accounting for Costs Associated with Exit or Disposal Activities, was issued in August 2001. FAS&nbsp;146 requires recognition of a liability for a cost when the liability is incurred.  FAS 146 supersedes EITF Issue No 94-3 Liability Recognition for Certain Termination Benefits and Other Costs to Exit an Activity (including certain costs incurred in restructuring) which required  a liability for an exit cost to be recognized at the date of an entity&#146;s commitment to plan. The impact on the group if any will depend upon the circumstances existing at that time.</font></p>
<p><font face="serif" size="2"><b>Note 33 &#151; Post Balance Events</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 1, 2002, the Board announced its intention to separate Six Continents Hotels and Soft Drinks from Six Continents Retail, and to return &pound;700 million of capital to shareholders.  These proposals are subject to shareholder and regulatory approval and are not expected to become effective before April 2003.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 5, 2002, the Company announced a tender offer for the repurchase of all outstanding medium-term notes. The offer applied to the &pound;10 million Floating Rate Notes due 2004 (the  &#147;2004 Notes&#148;), the &#128;25 million 4.52% Notes due 2006 (&#147;2006 Notes&#148;) and the &pound;250 million 5.75% Notes due 2007 (&#147;2007 Notes&#148;). The Company announced on January 13, 2003 that this offer  was accepted for all the 2004 Notes, all the 2006 Notes and 92.76% in principal amount of the 2007 Notes. Accordingly, all the 2004 and 2006 Notes and 92.76% of the 2007 Notes were repurchased  on January 28, 2003 for an aggregate of &pound;271 million.</font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 5, 2002, the Company also announced its intention to repurchase the &pound;250 million 103/8% debenture stock due 2016 (the &#147;Stock&#148;). At a meeting of the holders of the Stock  convened on January 14, 2003, a resolution was passed approving the insertion of an option into the terms and conditions of the Stock requiring the Company to redeem the Stock no later than May  31, 2003. This enables the Company to redeem the Stock at a price corresponding to a yield of 100 basis points over the yield of UK Treasury Stock 8% due 2015. The Company gave notice to  Stockholders on February 11, 2003 that it will redeem all of the Stock on February 27, 2003. The premium on redemption is currently estimated at &pound;122 million.</font></p>
<p></p>
<p align=center><font face="serif" size="2">F-71</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pS-1"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<p align=center><font face="serif" size="2"><b>SCHEDULE II</b></font></p>
<p align=center><font face="serif" size="2"><b>VALUATION AND QUALIFYING ACCOUNTS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Description</b></font></div></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Balance
      at<br>
      beginning<br>
      of period</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Additions<br>
      charged to<br>
      costs and<br>
      expenses</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Exchange<br>
      differences</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Deductions</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan=2 align=center valign=bottom><font face="serif" size="1"><b>Balance
      at<br>
      end of<br>
      period</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td>
      <hr align="left" width="150" size="1" noshade></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td><font size="2">&nbsp;</font></td>
    <td colspan=14 align=center valign=bottom><font face="serif" size="1"><b>(&pound;
      million)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year
        ended September 30, 2002</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions
        for bad and doubtful debts (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">1</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(9</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year
        ended September 30, 2001</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions
        for bad and doubtful debts (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(7</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Year
        ended September 30, 2000</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Provisions
        for bad and doubtful debts (i)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">35</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">9</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">3</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">(15</font></td>
    <td valign=bottom><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="serif" size="2">32</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="serif" size="2">(i)</font></td>
    <td><font face="serif" size="2">Excludes provisions for bad and doubtful debts
      relating to trade loans and other fixed asset investments as shown in Note
      17 of Notes to the Financial Statements.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="serif" size="2">SH-1</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p></p>
<p align=center><font face="serif" size="2"><b>SIGNATURES</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">&nbsp;SIX CONTINENTS PLC</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="45%">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td><font face="serif" size="2">By: </font></td>
    <td><font size="2">/s/ Richard C. North</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><hr align="left" width="200" size="1" nosahde></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Name: Richard C. North</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Title: Finance Director</font></td>
  </tr>
</table>

<p><font face="serif" size="2">Date: February 17, 2003</font></p>
<p align=center><font face="serif" size="2">S-1</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pC-1"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>CERTIFICATION</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Richard C. North, certify that:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">1.</font></td>
    <td><font face="serif" size="2">I have reviewed this annual report on Form 20-F of Six Continents PLC;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">2.</font></td>
    <td><font face="serif" size="2">Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">3.</font></td>
    <td><font face="serif" size="2">Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">4.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d- 14) for the registrant and have:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">a)</font></td>
    <td><font face="serif" size="2">designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">b)</font></td>
    <td><font face="serif" size="2">evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the &#147;Evaluation Date&#148;); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">c)</font></td>
    <td><font face="serif" size="2">presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">5.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">a)</font></td>
    <td><font face="serif" size="2">all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">b)</font></td>
    <td><font face="serif" size="2">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">6.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="45%">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td><font face="serif" size="2">By:</font></td>
    <td><font size="2">/s/ Richard C. North</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><hr align="left" width="200" size="1" nosahde></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Name: Richard C. North</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Title: Finance Director</font></td>
  </tr>
</table>
<p><font face="serif" size="2">Date: February 17, 2003</font></p>
<p align=center><font face="serif" size="2">C-1</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p></p>
<p align=center><font face="serif" size="2"><b>CERTIFICATION</b></font></p>
<p><font face="serif" size="2">I, Tim Clarke, certify that:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">1.</font></td>
    <td><font face="serif" size="2">I have reviewed this annual report on Form 20-F of Six Continents PLC;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">2.</font></td>
    <td><font face="serif" size="2">Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">3.</font></td>
    <td><font face="serif" size="2">Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">4.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d- 14) for the registrant and have:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">a)</font></td>
    <td><font face="serif" size="2">designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">b)</font></td>
    <td><font face="serif" size="2">evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the &#147;Evaluation Date&#148;); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">c)</font></td>
    <td><font face="serif" size="2">presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">5.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">a)</font></td>
    <td><font face="serif" size="2">all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report financial data and have identified for the registrant&#146;s auditors any material weaknesses in internal controls; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">b)</font></td>
    <td><font face="serif" size="2">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">6.</font></td>
    <td><font face="serif" size="2">The registrant&#146;s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="serif" size="2">Date: February 17, 2003</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="45%">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td><font face="serif" size="2">By:</font></td>
    <td><font size="2">/s/ Tim Clarke</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><hr align="left" width="200" size="1" nosahde></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Name: Tim Clarke</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font face="serif" size="2">Title: Director and Chief Executive</font></td>
  </tr>
</table>
<p align=center><font face="serif" size="2">C-2</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="serif" size="2"><b>EXHIBIT INDEX</b></font></p>
<p><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits
  are filed as part of this Annual Report:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 1</font></td>
    <td><font face="serif" size="2">Memorandum and Articles of Association (incorporated
      by reference to Exhibit 1 to Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-2bi.htm"><font face="serif" size="2">Exhibit
      2(b)(i)</font></a></td>
    <td><a href="b690316ex-2bi.htm"><font face="serif" size="2">Instruments defining
      the Rights of Holders of Long-Term Debt: The total amount of long-term debt
      securities of the Group authorized under any individual instrument, other
      than the &#147;Amended and Restated Trust Deed&#148; dated September&nbsp;21,
      2000 relating to the Company&#146;s &#128;2,000 million Debt Issuance Program
      originally constituted on October 9, 1998 (incorporated by reference to
      Exhibit 2 to Six Continents PLC&#146;s Annual Report on Form 20-F (File
      No. 1-10409), dated December 20, 2001), does not exceed 10% of the total
      assets of the Group on a consolidated basis. The Company agrees to furnish
      copies of any or all such instruments to the Securities and Exchange Commission
      upon request</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(a)(i)</font></td>
    <td><font face="serif" size="2">Agreement dated June 14, 2000 between the
      Company and others and Interbrew SA and others relating to the disposal
      of Bass Brewers (incorporated by reference to Exhibit 4 to Six Continents
      PLC&#146;s Annual Report on Form 20-F (File No. 1-10409), dated December
      21, 2000)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4aii.htm"><font face="serif" size="2">Exhibit
      4(a)(ii)</font></a></td>
    <td><a href="b690316ex-4aii.htm"><font face="serif" size="2">&pound;3,000,000,000
      Facility Agreement dated February 3, 2003 for Six Continents PLC</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(i)</font></td>
    <td><font face="serif" size="2">Tim Clarke&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(ii)</font></td>
    <td><font face="serif" size="2">Richard North&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(iii)</font></td>
    <td><font face="serif" size="2">Thomas R Oliver&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No.1-10409), dated December 20, 2001)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4civ.htm"><font face="serif" size="2">Exhibit
      4(c)(iv)</font></a></td>
    <td><a href="b690316ex-4civ.htm"><font face="serif" size="2">Agreement, dated
      February 12, 2003, between Thomas R. Oliver and Six Continents Hotels Limited</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-4cv.htm"><font face="serif" size="2">Exhibit
      4(c)(v)</font></a></td>
    <td><a href="b690316ex-4cv.htm"><font face="serif" size="2">Consultancy Agreement,
      dated February 12, 2003, between Thomas R. Oliver and Six&nbsp;Continents
      Hotels Limited</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="serif" size="2">Exhibit 4(c)(vi)</font></td>
    <td><font face="serif" size="2">Sir Ian Prosser&#146;s service contract (incorporated
      by reference to Exhibit 4 of Six Continents PLC&#146;s Annual Report on
      Form 20-F (File No. 1-10409), dated December 20, 2001)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><a href="b690316ex-8.htm"><font face="serif" size="2">Exhibit
      8</font></a></td>
    <td><a href="b690316ex-8.htm"><font face="serif" size="2">Subsidiaries</font></a></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
</body>
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<FILENAME>b690316ex-2bi.htm
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<html>
<head>
<title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">
<div style="page-break-before:always">
  <div align="right">
    <p><b><font size="2" face="sans-serif">Exhibit 2(b)(i)</font></b></p>
    <p>&nbsp;</p>
  </div>
</div>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"><a name="p?"></a></div>
<page>
<p>&nbsp;</p>
<p align="left"><font size="2" face="serif">The total amount of long-term debt
  securities of the Group authorized under any individual agreement, other than
  the &#8220;Amended and Restated Trust Deed&#8221; dated September 21, 2000 relating
  to the Company&#8217;s euro 2,000 million Debt Issuance Program originally constituted
  on October 9, 1998 (incorporated by reference to Exhibit 2 to Six Continents
  PLC&#8217;s Annual Report on Form 20-F (File No. 1-10409), dated December 20,
  2001), does not exceed 10% of the total assets of the Group on a consolidated
  basis. The Company agrees to furnish copies of any or all such instruments to
  the Securities and Exchange Commission upon request.</font></p>
<hr noshade align="center" width="100%" size="2">
<p align="left">&nbsp;</p>
</body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>6
<FILENAME>b690316ex-4aii.htm
<TEXT>
<html>
<head>
    <title>Prepared and filed by St Ives Burrups</title>
</head>
<div style="page-break-before:always"></div>
<page>
<body>
<p align="right"><font face="sans-serif" size="2"><b>Exhibit 4(a)(ii)</b></font></p>
<p></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<p align="right"><font face="sans-serif" size="2">CONFORMED COPY</font></p>
<p align=center><font face="sans-serif" size="2">&pound;3,000,000,000</font></p>
<p align=center><font face="sans-serif" size="2">FACILITY AGREEMENT</font></p>
<p align=center><font face="sans-serif" size="2">dated 3 February 2003</font></p>
<p align=center><font face="sans-serif" size="2">for</font></p>
<p align=center><font face="sans-serif" size="2">SIX CONTINENTS PLC</font></p>
<p align=center><font face="sans-serif" size="2">arranged by<i><br>  BARCLAYS CAPITAL<br>  HSBC BANK plc<br>  J.P. MORGAN plc<br>  SALOMON BROTHERS INTERNATIONAL LIMITED<br>  THE ROYAL BANK OF SCOTLAND plc</i></font></p>
<p align=center><font face="sans-serif" size="2">with</font></p>
<p align=center><font face="sans-serif" size="2"><i>HSBC BANK plc</i><br>  acting as Agent</font></p>
<p align=center><font face="sans-serif" size="2"><img src="linklaters.jpg" width="142" height="36"><br>
  Ref: RJE/PHPS/EHXT</font></p>
<p align=center>&nbsp;</p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="center"><font face="sans-serif" size="2"><b><a name="contents"></a>CONTENTS</b></font><font face="sans-serif" size="2">&nbsp;</font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr align=center valign=top>
    <td colspan=2 align="left"><font face="sans-serif" size="2"><b>CLAUSE</b></font></td>
    <td align="right"><div align="right"><font face="sans-serif" size="2"><b>PAGE</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center"><font face="sans-serif" size="2"><b>SECTION
        1<br>
        INTERPRETATION<br>
        </b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td width="6%"><div style="margin-left:3%; text-indent:-3%"><a href="#p5a"><font face="sans-serif" size="2">1.</font></a></div></td>
    <td width="90%" valign=bottom><a href="#p5a"><font face="sans-serif" size="2">Definitions
      and interpretation</font></a></td>
    <td width="4%" valign=bottom><div align="right"><a href="#p5a"><font face="sans-serif" size="2">1</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center"><font face="sans-serif" size="2"><b>SECTION
        2<br>
        THE FACILITY</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18"><font face="sans-serif" size="2">2.</font></a></div></td>
    <td valign=bottom><a href="#p18"><font face="sans-serif" size="2">The Facility</font></a></td>
    <td valign=bottom><div align="right"><a href="#p18"><font face="sans-serif" size="2">14</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18a"><font face="sans-serif" size="2">3.</font></a></div></td>
    <td valign=bottom><a href="#p18a"><font face="sans-serif" size="2">Purpose</font></a></td>
    <td valign=bottom><div align="right"><a href="#p18a"><font face="sans-serif" size="2">14</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18b"><font face="sans-serif" size="2">4.</font></a></div></td>
    <td valign=bottom><a href="#p18b"><font face="sans-serif" size="2">Conditions
      of Utilisation</font></a></td>
    <td valign=bottom><div align="right"><a href="#p18b"><font face="sans-serif" size="2">14</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"></font></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center"><font face="sans-serif" size="2"><b>SECTION
        3<br>
        UTILISATION</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p20"><font face="sans-serif" size="2">5.</font></a></div></td>
    <td valign=bottom><a href="#p20"><font face="sans-serif" size="2">Utilisation</font></a></td>
    <td valign=bottom><div align="right"><a href="#p20"><font face="sans-serif" size="2">16</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p21a"><font face="sans-serif" size="2">6.</font></a></div></td>
    <td valign=bottom><a href="#p21a"><font face="sans-serif" size="2">Optional
      Currencies</font></a></td>
    <td valign=bottom><div align="right"><a href="#p21a"><font face="sans-serif" size="2">17</font></a></div></td>
  </tr>
  <tr align="center" valign=bottom>
    <td colspan="3"> <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        4</b></font></div></td>
  </tr>
  <tr align="center" valign=bottom>
    <td colspan="3"> <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>REPAYMENT,
        PREPAYMENT AND CANCELLATION</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p24"><font face="sans-serif" size="2">7.</font></a></div></td>
    <td valign=bottom><a href="#p24"><font face="sans-serif" size="2">Repayment</font></a></td>
    <td valign=bottom><div align="right"><a href="#p24"><font face="sans-serif" size="2">20</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p24a"><font face="sans-serif" size="2">8.</font></a></div></td>
    <td valign=bottom><a href="#p24a"><font face="sans-serif" size="2">Prepayment
      and cancellation</font></a></td>
    <td valign=bottom><div align="right"><a href="#p24a"><font face="sans-serif" size="2">20</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        5</b></font></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>COSTS
        OF UTILISATION</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p28"><font face="sans-serif" size="2">9.</font></a></div></td>
    <td valign=bottom><a href="#p28"><font face="sans-serif" size="2">Interest</font></a></td>
    <td valign=bottom><div align="right"><a href="#p28"><font face="sans-serif" size="2">24</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p28a"><font face="sans-serif" size="2">10.</font></a></div></td>
    <td valign=bottom><a href="#p28a"><font face="sans-serif" size="2">Interest
      Periods</font></a></td>
    <td valign=bottom><div align="right"><a href="#p28a"><font face="sans-serif" size="2">24</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p29a"><font face="sans-serif" size="2">11.</font></a></div></td>
    <td valign=bottom><a href="#p29a"><font face="sans-serif" size="2">Changes
      to the calculation of interest</font></a></td>
    <td valign=bottom><div align="right"><a href="#p29a"><font face="sans-serif" size="2">25</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p30a"><font face="sans-serif" size="2">12.</font></a></div></td>
    <td valign=bottom><a href="#p30a"><font face="sans-serif" size="2">Fees</font></a></td>
    <td valign=bottom><div align="right"><a href="#p30a"><font face="sans-serif" size="2">26</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        6</b></font></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>ADDITIONAL
        PAYMENT OBLIGATIONS</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p32"><font face="sans-serif" size="2">13.</font></a></div></td>
    <td valign=bottom><a href="#p32"><font face="sans-serif" size="2">Tax gross
      up and indemnities</font></a></td>
    <td valign=bottom><div align="right"><a href="#p32"><font face="sans-serif" size="2">28</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p36a"><font face="sans-serif" size="2">14.</font></a></div></td>
    <td valign=bottom><a href="#p36a"><font face="sans-serif" size="2">Increased
      costs</font></a></td>
    <td valign=bottom><div align="right"><a href="#p36a"><font face="sans-serif" size="2">32</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p37a"><font face="sans-serif" size="2">15.</font></a></div></td>
    <td valign=bottom><a href="#p37a"><font face="sans-serif" size="2">Other indemnities</font></a></td>
    <td valign=bottom><div align="right"><a href="#p37a"><font face="sans-serif" size="2">33</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p38a"><font face="sans-serif" size="2">16.</font></a></div></td>
    <td valign=bottom><a href="#p38a"><font face="sans-serif" size="2">Mitigation
      by the Lenders</font></a></td>
    <td valign=bottom><div align="right"><a href="#p38a"><font face="sans-serif" size="2">34</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p39a"><font face="sans-serif" size="2">17.</font></a></div></td>
    <td valign=bottom><a href="#p39a"><font face="sans-serif" size="2">Costs and
      expenses</font></a></td>
    <td valign=bottom><div align="right"><a href="#p39a"><font face="sans-serif" size="2">35</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        7</b></font></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>REPRESENTATIONS,
        UNDERTAKINGS AND EVENTS OF DEFAULT</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p40"><font face="sans-serif" size="2">18.</font></a></div></td>
    <td valign=bottom><a href="#p40"><font face="sans-serif" size="2">Representations</font></a></td>
    <td valign=bottom><div align="right"><a href="#p40"><font face="sans-serif" size="2">36</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p41a"><font face="sans-serif" size="2">19.</font></a></div></td>
    <td valign=bottom><a href="#p41a"><font face="sans-serif" size="2">Information
      undertakings</font></a></td>
    <td valign=bottom><div align="right"><a href="#p41a"><font face="sans-serif" size="2">37</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p44a"><font face="sans-serif" size="2">20.</font></a></div></td>
    <td valign=bottom><a href="#p44a"><font face="sans-serif" size="2">General
      undertakings</font></a></td>
    <td valign=bottom><div align="right"><a href="#p44a"><font face="sans-serif" size="2">40</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p47a"><font face="sans-serif" size="2">21.</font></a></div></td>
    <td valign=bottom><a href="#p47a"><font face="sans-serif" size="2">Events
      of Default</font></a></td>
    <td valign=bottom><div align="right"><a href="#p47a"><font face="sans-serif" size="2">43</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        9</b></font></div>
      <div align="center"></div>
      <div align="center"></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>CHANGES
        TO PARTIES</b></font></div>
      <div align="center"></div>
      <div align="center"></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p51"><font face="sans-serif" size="2">22.</font></a></div></td>
    <td valign=bottom><a href="#p51"><font face="sans-serif" size="2">Changes
      to the Lenders</font></a></td>
    <td valign=bottom><div align="right"><a href="#p51"><font face="sans-serif" size="2">47</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p54a"><font face="sans-serif" size="2">23.</font></a></div></td>
    <td valign=bottom><a href="#p54a"><font face="sans-serif" size="2">Changes
      to the Borrowers</font></a></td>
    <td valign=bottom><div align="right"><a href="#p54a"><font face="sans-serif" size="2">50</font></a></div></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        7</b></font></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>THE
        FINANCE PARTIES</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p56"><font face="sans-serif" size="2">24.</font></a></div></td>
    <td valign=bottom><a href="#p56"><font face="sans-serif" size="2">Role of
      the Agent and the Arranger</font></a></td>
    <td valign=bottom><div align="right"><a href="#p56"><font face="sans-serif" size="2">52</font></a></div></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<font face="sans-serif" size="2">
<hr size="1" noshade>
</font><font face="sans-serif" size="2"><font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font></font>
<p align="center"><font face="sans-serif" size="2"><font face="sans-serif" size="2">(i)</font></font>
</p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td width="11%"><div style="margin-left:3%; text-indent:-3%"><a href="#p60a"><font face="sans-serif" size="2">25.</font></a></div></td>
    <td width="87%" valign=bottom><a href="#p60a"><font face="sans-serif" size="2">Conduct
      of business by the Finance Parties</font></a></td>
    <td width="2%" align="right" valign=bottom><a href="#p60a"><font face="sans-serif" size="2">56</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p60b"><font face="sans-serif" size="2">26.</font></a></div></td>
    <td valign=bottom><a href="#p60b"><font face="sans-serif" size="2">Sharing
      among the Finance Parties</font></a></td>
    <td align="right" valign=bottom><a href="#p60b"><font face="sans-serif" size="2">56</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3"><div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>SECTION
        8</b></font></div>
      <div align="center" style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2"><b>ADMINISTRATION</b></font></div></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p62"><font face="sans-serif" size="2">27.</font></a></div></td>
    <td valign=bottom><a href="#p62"><font face="sans-serif" size="2">Payment
      mechanics</font></a></td>
    <td align="right" valign=bottom><a href="#p62"><font face="sans-serif" size="2">58</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p64a"><font face="sans-serif" size="2">28.</font></a></div></td>
    <td valign=bottom><a href="#p64a"><font face="sans-serif" size="2">Set-off</font></a></td>
    <td align="right" valign=bottom><a href="#p64a"><font face="sans-serif" size="2">60</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p64b"><font face="sans-serif" size="2">29.</font></a></div></td>
    <td valign=bottom><a href="#p64b"><font face="sans-serif" size="2">Notices</font></a></td>
    <td align="right" valign=bottom><a href="#p64b"><font face="sans-serif" size="2">60</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p65a"><font face="sans-serif" size="2">30.</font></a></div></td>
    <td valign=bottom><a href="#p65a"><font face="sans-serif" size="2">Calculations
      and certificates</font></a></td>
    <td align="right" valign=bottom><a href="#p65a"><font face="sans-serif" size="2">61</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p66a"><font face="sans-serif" size="2">31.</font></a></div></td>
    <td valign=bottom><a href="#p66a"><font face="sans-serif" size="2">Partial
      invalidity</font></a></td>
    <td align="right" valign=bottom><a href="#p66a"><font face="sans-serif" size="2">62</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p66b"><font face="sans-serif" size="2">32.</font></a></div></td>
    <td valign=bottom><a href="#p66b"><font face="sans-serif" size="2">Remedies
      and waivers</font></a></td>
    <td align="right" valign=bottom><a href="#p66b"><font face="sans-serif" size="2">62</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p66c"><font face="sans-serif" size="2">33.</font></a></div></td>
    <td valign=bottom><a href="#p66c"><font face="sans-serif" size="2">Amendments
      and waivers</font></a></td>
    <td align="right" valign=bottom><a href="#p66c"><font face="sans-serif" size="2">62</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p67a"><font face="sans-serif" size="2">34.</font></a></div></td>
    <td valign=bottom><a href="#p67a"><font face="sans-serif" size="2">Counterparts</font></a></td>
    <td align="right" valign=bottom><a href="#p67a"><font face="sans-serif" size="2">63</font></a></td>
  </tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p67b"><font face="sans-serif" size="2">35.</font></a></div></td>
    <td valign=bottom><a href="#p67b"><font face="sans-serif" size="2">Consequences
      of steps to Separation and no Separation</font></a></td>
    <td align="right" valign=bottom><a href="#p67b"><font face="sans-serif" size="2">63</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3" align="center"><font face="sans-serif" size="2"><b>SECTION
      9<br>
      GOVERNING LAW</b></font></tr>
  <tr valign=bottom>
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p68"><font face="sans-serif" size="2">36.</font></a></div></td>
    <td valign=bottom><a href="#p68"><font face="sans-serif" size="2">Governing
      law</font></a></td>
    <td align="right" valign=bottom><a href="#p68"><font face="sans-serif" size="2">64</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="3" align="center"> <p><font face="sans-serif" size="2"><b><br>
        THE SCHEDULES</b></font></p></tr>
  <tr valign=bottom>
    <td colspan="2"><font face="sans-serif" size="2"><b>SCHEDULE</b></font> </td>
    <td align="right"><font face="sans-serif" size="2"><b>PAGE</b></font></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p69"><font face="sans-serif" size="2">SCHEDULE
        1 The Original Lenders</font></a></div></td>
    <td align="right"><a href="#p69"><font face="sans-serif" size="2">65</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p70"><font face="sans-serif" size="2">SCHEDULE
        2 Conditions Precedent</font></a></div></td>
    <td align="right"><a href="#p70"><font face="sans-serif" size="2">66</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p72"><font face="sans-serif" size="2">SCHEDULE
        3 Requests</font></a></div></td>
    <td align="right"><a href="#p72"><font face="sans-serif" size="2">68</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p74"><font face="sans-serif" size="2">SCHEDULE
        4 Mandatory Cost Formulae</font></a></div></td>
    <td align="right"><a href="#p74"><font face="sans-serif" size="2">70</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p77"><font face="sans-serif" size="2">SCHEDULE
        5 Form Of Transfer Certificate</font></a></div></td>
    <td align="right"><a href="#p77"><font face="sans-serif" size="2">73</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p79"><font face="sans-serif" size="2">SCHEDULE
        6 Timetables</font></a></div></td>
    <td align="right"><a href="#p79"><font face="sans-serif" size="2">75</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p81"><font face="sans-serif" size="2">SCHEDULE
        7 Form of Term Out Notice</font></a></div></td>
    <td align="right"><a href="#p81"><font face="sans-serif" size="2">77</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p82"><font face="sans-serif" size="2">SCHEDULE
        8 LMA Form of Confidentiality Undertaking</font></a></div></td>
    <td align="right"><a href="#p82"><font face="sans-serif" size="2">78</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan="2"><div style="margin-left:3%; text-indent:-3%"><a href="#p86"><font face="sans-serif" size="2">SCHEDULE
        9 Form of Accession Letter</font></a></div></td>
    <td align="right"><a href="#p86"><font face="sans-serif" size="2">83</font></a></td>
  </tr>
  <tr valign=bottom>
    <td colspan=2><a href="#p87"><font face="sans-serif" size="2">SCHEDULE 10
      Form of Resignation Letter</font></a></td>
    <td align="right" valign=bottom><a href="#p87"><font face="sans-serif" size="2">84</font></a></td>

  </tr>
</table>
<p align=center><font face="sans-serif" size="2"></font></p>
<font face="sans-serif" size="2">
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>(ii)</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
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<p><font face="sans-serif" size="2">THIS AGREEMENT is dated 3 February 2003 and made between:</font></p>
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    <td width="3%"><font face="sans-serif" size="2">(1)</font></td>
    <td><font face="sans-serif" size="2">SIX CONTINENTS PLC, registration number 913450 as borrower (the &#147;<b>Original Borrower</b>&#148;);</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(2)</font></td>
    <td><font face="sans-serif" size="2">BARCLAYS CAPITAL (the Investment Banking Division of Barclays Bank PLC), HSBC BANK plc, J.P.&nbsp;MORGAN plc, SALOMON BROTHERS INTERNATIONAL LIMITED and THE ROYAL BANK OF SCOTLAND plc (whether acting individually or together the &#147;<b>Arranger</b>&#148;);</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(3)</font></td>
    <td><font face="sans-serif" size="2">THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the &#147;<b>Original Lenders</b>&#148;); and</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(4)</font></td>
    <td><font face="sans-serif" size="2">HSBC BANK plc as agent of the other Finance Parties (the &#147;<b>Agent</b>&#148;).</font></td>
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<p><font face="sans-serif" size="2">IT IS AGREED as follows:</font></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 1</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>INTERPRETATION</b></font></p>
<p><font face="sans-serif" size="2"><a name="p5a"></a>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>DEFINITIONS
  AND INTERPRETATION</b></font></p>
<p><font face="sans-serif" size="2">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Definitions</b></font></p>
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    <td><font face="sans-serif" size="2">In this Agreement:</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Accession Letter</b>&#148; means the document substantially in the form set out in Schedule 9 (<i>Form of Accession Letter</i>).</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Additional Borrower</b>&#148; means TopCo PLC if it becomes an Additional Borrower in accordance with Clause 23 (<i>Changes to the Borrowers</i>).</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Additional Cost Rate</b>&#148; has the meaning given to it in Schedule 4 (<i>Mandatory Cost formulae</i>).</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Affiliate</b>&#148; means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Agent&#146;s Spot Rate of Exchange</b>&#148; means the spot rate of exchange at which the Agent is able to purchase the relevant currency with the Base Currency in the London foreign exchange market at or about 11:00 a.m. on a particular day.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Applicable Accounting Principles</b>&#148; means those accounting principles, standards and practices on which the preparation of the Original Financial Statements was based and those accounting policies which were used in the preparation of those financial statements.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Availability Period</b>&#148; means the period from and including the date of this Agreement to and including the earlier of:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the Termination Date; and</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the Term Out Date.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Available Commitment</b>&#148; means a Lender&#146;s Commitment minus:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the Base Currency Amount of its participation in any outstanding Loans; and</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in relation to any proposed Utilisation, the Base Currency Amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date,</font></td>
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    <td><font face="sans-serif" size="2">other than that Lender&#146;s participation in any Revolving Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date.</font></td>
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<p align=center><font face="sans-serif" size="2"> </font></p>
<font face="sans-serif" size="2">
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<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">1</font></p>
</font>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Available Facility</b>&#148; means the aggregate for the time being of each Lender&#146;s Available Commitment.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Balance Sheet</b>&#148; means at any time, the latest published annual audited consolidated balance sheet of the Group.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Base Currency</b>&#148; or <b>&#147;&pound;&#148;</b> means sterling.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Base Currency Amount</b>&#148; means, in relation to a Loan, the amount specified in the Utilisation Request delivered by a Borrower for that Loan (or, if the amount requested is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent&#146;s Spot Rate of Exchange on the date which is three Business Days before the Utilisation Date or, if later, on the date the Agent receives the Utilisation Request) adjusted to reflect any repayment (other than in relation to a Term Loan, any repayment arising from a change of currency) or prepayment of the Loan.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Borrowed Money</b>&#148; means any indebtedness (without double counting) for or in respect of:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">moneys borrowed;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">any amount raised by acceptance under any acceptance credit facility;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock, commercial paper or any similar instrument entered into or issued primarily as a method of raising finance;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">receivables sold or discounted (other than any receivables to the extent they are sold or discounted on a non-recourse basis);</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">any amount raised under any other transaction (including any forward sale or purchase agreement) shown as a borrowing in the audited consolidated balance sheet of the Group in accordance with GAAP;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">for the purpose of Clause 21.4 (<i>Cross Default</i>) only, any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account);</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">shares which are expressed to be redeemable prior to the Termination Date (on the assumption that the Term Out Option has been or shall be exercised);</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">any counter-indemnity obligation in respect of a guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; and</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(j)</font></td>
    <td><font face="sans-serif" size="2">the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above,</font></td>
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    <td><font face="sans-serif" size="2">but excluding indebtedness owing by a member of the Group to another member of the Group.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Borrower</b>&#148; means the Original Borrower or the Additional Borrower, unless it has ceased to be a Borrower in accordance with Clause 23 (<i>Changes to the Borrowers</i>).</font></td>
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<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>2</p>
</font>
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    <td><font face="sans-serif" size="2">&#147;<b>Break Costs</b>&#148; means the amount (if any) by which:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the interest (excluding the Margin and Mandatory Costs) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;</font></td>
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    <td><font face="sans-serif" size="2">exceeds:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with leading banks in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Business Day</b>&#148; means a day (other than a Saturday or Sunday) on which banks are open for general business in London and:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">(in relation to any date for payment, purchase or sale of a currency other than euro) the principal financial centre of the country of that currency; or</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">(in relation to any date for payment, purchase or sale of euro) any TARGET Day.</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Commitment</b>&#148; means:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading &#147;Commitment&#148; in Schedule 1 (<i>The Original Lenders</i>) and the amount of any other Commitment transferred to it under this Agreement; and</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in relation to any other Lender, the amount in the Base Currency of any Commitment transferred to it under this Agreement,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">to the extent not cancelled, reduced or transferred by it under this Agreement.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2"><i>&#147;</i><b>Confidentiality Undertaking</b>&#148; means a confidentiality undertaking in the form set out in Schedule 8 (LMA Form of Confidentiality Undertaking) or in any other form agreed between the Original Borrower and the Agent.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Consolidated EBITDA</b>&#148; means, in respect of any Ratio Period, the total operating profit for continuing operations, acquisitions (as a component of continuing operations) and discontinued operations (but adding back any operating exceptional losses and deducting any operating exceptional profits within that figure) of the Group before interest and Taxes and after adding back amounts provided for depreciation and amortisation (including any amortisation of underwriting and syndication fees in connection with the Facility).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Consolidated Gross Assets</b>&#148; means the consolidated fixed assets plus consolidated current assets of the Group.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Disposal</b>&#148; has the meaning given to it in Clause 20.3 (<i>Disposals</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>EURIBOR</b>&#148; means, in relation to any Loan in euro:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the applicable Screen Rate; or</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">(if no Screen Rate is available for the Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>3</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p8"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">request quoted by the Reference Banks to leading banks in the European interbank market,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">as of the Specified Time on the Quotation Day for the offering of deposits in euro for a period comparable to the Interest Period of the relevant Loan.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>euro</b>&#148; or &#147;&#128;&#148; means the single currency of the Participating Member States.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Event of Default</b>&#148; means any event or circumstance specified as such in Clause 21 (<i>Events of Default</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Existing Facility</b>&#148; means the existing $3,000,000,000 syndicated credit facility dated 13&nbsp;February&nbsp;1998.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>External Net Borrowings of Subsidiaries</b>&#148; means at any time that portion of Total Consolidated Net Borrowings which is borrowed or incurred by all Subsidiaries of the Original Borrower, calculated on the same basis as is used for the calculation of Total Consolidated Net Borrowings, and for the avoidance of doubt eliminating any of the same arising between a Subsidiary and another member of the Group.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>External Debt</b>&#148; means Borrowed Money of any member of the Group raised as a result of issuing any note, bond or other debt security (whether issued to the public or by means of private placement) and with a maturity of more than one year and in an amount per transaction in excess of &pound;50,000,000 (and, in respect of transactions below &pound;50,000,000, in the aggregate amount from all such transactions in a calendar year in excess of &pound;200,000,000).</font></td>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Facility</b>&#148; means the revolving loan facility or, after the Term Out Date, the term loan facility made available under this Agreement as described in Clause 2 (<i>The Facility</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Facility Office</b>&#148; means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days&#146; written notice) as the office or offices through which it will perform its obligations under this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Fee Letter</b>&#148; means any letter or letters dated on or about the date of this Agreement between the Arranger and the Original Borrower (or the Agent and the Original Borrower) setting out any of the fees referred to in Clause 12 (<i>Fees</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Finance Document</b>&#148; means this Agreement, any Fee Letter, the Mandate Letter and any other document designated as such by the Agent and the Original Borrower.</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Finance Party</b>&#148; means the Agent, the Arranger or a Lender.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>GAAP</b>&#148; means generally accepted accounting principles, standards and practices in the United Kingdom.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Group</b>&#148; means, subject to Clause 35 (<i>Consequences of Separation and Consents</i>), the Original Borrower and the Subsidiaries of the Original Borrower for the time being.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Holding Company</b>&#148; means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Hotels Group</b>&#148; means NewCo PLC and the subsidiary undertakings of the Original Borrower which will become subsidiary undertakings of NewCo PLC on the Separation Date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>4</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p9"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Information Memorandum</b>&#148; means the document in the form approved by the Original Borrower concerning the Group which, at its request and on its behalf, is to be prepared in relation to this transaction and shall be distributed by the Arranger to selected financial institutions for the purposes of the primary syndication of the Facility.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Interest Period</b>&#148; means, in relation to a Loan, each period determined in accordance with Clause 10 (<i>Interest Periods</i>) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 9.3 (<i>Default interest</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Lender</b>&#148; means:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">any Original Lender; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 22 (<i>Changes to the Lenders</i>),</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">which in each case has not ceased to be a Party in accordance with the terms of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>LIBOR</b>&#148; means, in relation to any Loan:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the applicable Screen Rate; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">(if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request quoted by the Reference Banks to leading banks in the London interbank market,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to the Interest Period for that Loan.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>LMA</b>&#148; means the Loan Market Association.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Loan</b>&#148; means a Revolving Loan or a Term Loan.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Major Disposal Proceeds</b>&#148; means the cash proceeds received by a member of the Group from a Disposal of assets to a person who is not a member of the Group which constitutes a Disposal of a substantial part of the Group (where, for the purposes of this definition, &#147;a substantial part of the Group&#148; means a part of the Group:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">which generates at least 50 per cent. of Consolidated EBITDA (where Consolidated EBITDA is based on Consolidated EBITDA as calculated for the financial year of the Original Borrower immediately prior to the financial year in which such Disposal is made); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">which generates at least 50 per cent. of consolidated revenues (where consolidated revenues are based on those calculated for the financial year of the Original Borrower immediately prior to the financial year in which such Disposal is made); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">which constitutes at least 50 per cent. of Consolidated Gross Assets).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Majority Lenders</b>&#148; means:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">until the Total Commitments have been reduced to zero, a Lender or Lenders whose Commitments aggregate more than 662/3 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero and there are no Loans outstanding,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>5</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p10"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">aggregated more than 662/3 per cent. of the Total Commitments immediately prior to the reduction);&nbsp;or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">at any other time, a Lender or Lenders whose participations in the Loans then outstanding aggregate more than 662/3 per cent. of all the Loans then outstanding.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Mandate Letter</b>&#148; means the letter dated the date of this Agreement between, amongst others, the Arranger and the Original Borrower relating to, amongst other things, syndication of the Facility.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Mandatory Cost</b>&#148; means the percentage rate per annum calculated by the Agent in accordance with Schedule 4 (<i>Mandatory Cost formulae</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Margin</b>&#148; means:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">0.35 per cent. per annum for the period from the date of this Agreement up to and including 31&nbsp;May 2003;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">0.65 per cent. per annum from 1 June 2003 until the Termination Date (if the Term Out Option is not exercised); and</font></td>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">if applicable, 0.75 per cent. per annum from the Term Out Date.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Material Adverse Effect</b>&#148; means a material adverse effect on:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the ability of the Original Borrower to perform and comply with its payment obligations under this Agreement; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the ability of the Original Borrower to perform and comply with its obligations under Clause 20.4&nbsp;(<i>Financial Ratios</i>) and, except where an actual breach of Clause 20.4 (<i>Financial Ratios</i>) has occurred, taking into account any remedial action proposed or undertaken by the Original Borrower.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Material Subsidiary</b>&#148; means, at any time, any Subsidiary of the Original Borrower:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">whose EBITDA or whose gross assets represent 15 per cent. or more of the Consolidated EBITDA or, as the case may be, Consolidated Gross Assets, in each case as calculated by reference to the latest consolidated annual accounts of such Subsidiary (which shall be audited if such accounts are prepared by that Subsidiary) and the latest audited consolidated annual accounts of the Group adjusted in such manner as the auditors of the Original Borrower may determine (which determination shall be conclusive in the absence of manifest error) (i) to reflect the EBITDA and gross assets of any person which has become or ceased to be a member of the Group since the end of the financial year to which the latest audited annual accounts of the Group relate where such adjustment is requested by the Original Borrower and (ii) so that for the purposes of this definition, the EBITDA and gross assets of the relevant Subsidiary shall be calculated on the same basis as Consolidated EBITDA a
nd Consolidated Gross Assets respectively are calculated (but relating only to the relevant Subsidiary) and making such adjustments and eliminations as are required to show the same as the contribution of the relevant Subsidiary to Consolidated EBITDA or, as the case may be, Consolidated Gross Assets; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">to which is transferred all or substantially all of the business, undertaking or assets of a Subsidiary which immediately prior to such transfer is a Material Subsidiary, whereupon</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>6</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">the transferor Subsidiary shall cease to be a Material Subsidiary and the transferee Subsidiary shall become a Material Subsidiary under this sub-paragraph (ii) upon the completion of such transfer.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any determination made by the auditors of the Original Borrower as to whether a Subsidiary of the Original Borrower is or is not a Material Subsidiary at any time shall be conclusive in the absence of manifest error.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Month</b>&#148; means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The above rules will only apply to the last Month of any period.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Net Interest Payable</b>&#148; means all interest payable net of interest receivable of the Group.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Net Proceeds</b>&#148; means, in relation to External Debt and Major Disposal Proceeds, the cash proceeds received by the Original Borrower or any member of the Group net of:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">transaction costs (including Taxes, fees and other costs and expenses) incurred or reasonably estimated to be payable by the Original Borrower or any member of the Group in connection with the relevant transaction; and</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in the case of Major Disposal Proceeds the amount of any:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">adjustment which may be required to be made to the proceeds received (and required to be returned to the relevant purchaser by the relevant Group Company) pursuant to the agreement relating to that Disposal; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">retention by a purchaser from the purchase price until such time as that amount is received by the relevant Group Company.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>NewCo PLC</b>&#148; means InterContinental Hotels Group PLC, the company which shall ultimately be the Holding Company of the Original Borrower on and following the Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Optional Currency</b>&#148; means a currency (other than the Base Currency) which complies with the conditions set out in Clause 4.3 (<i>Conditions relating to Optional Currencies</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Original Financial Statements</b>&#148; means the audited consolidated financial statements of the Group for the financial year ended 30 September 2002.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Participating Member State</b>&#148; means any member state of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Party</b>&#148; means a party to this Agreement.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Potential Event of Default</b>&#148; means any event which, if it continued after the giving of any notice and/or the expiry of any grace period provided for in Clause 21 (<i>Events of Default</i>) would become an Event of Default.</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>7</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p12"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Project Finance Indebtedness</b>&#148; means any indebtedness incurred to finance the ownership, acquisition, construction, development and/or operation of an asset in respect of which the person or persons to whom such indebtedness is or may be owed by the relevant borrower (whether or not a member of the Group) have no recourse whatsoever for the repayment of or payment of any sum relating to such indebtedness to any member of the Group other than:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">recourse to such borrower for amounts limited to the aggregate cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset; and/or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">recourse to such borrower for the purpose only of enabling amounts to be claimed in respect of such indebtedness in an enforcement of any encumbrance given by such borrower over such asset or the income, cash flow or other proceeds deriving therefrom to secure such indebtedness or any recourse referred to in (c) below, provided that (i) the extent of such recourse to such borrower is limited solely to the amount of any recoveries made on any such enforcement, and&nbsp;(ii)&nbsp;such person or persons are not entitled, by virtue of any right or claim arising out of or in connection with such indebtedness, to commence proceedings for the winding up or dissolution of the borrower or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect of the borrower or any of its assets (save for the assets the subject of such encumbrance); and/or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">recourse to such borrower generally, which recourse is limited to a claim for damages (other than liquidated damages and damages required to be calculated in a specified way) for breach of an obligation (not being a payment obligation or an obligation to procure payment by another or an obligation to comply to procure compliance by another with any financial ratios or other tests of financial condition) by the person against whom such recourse is available.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Qualifying Lender</b>&#148; has the meaning given to it in Clause 13 (<i>Tax Gross-up and Indemnities</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Quotation Day</b>&#148; means, in relation to any period for which an interest rate is to be determined:</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">(if the currency is sterling) the first day of that period;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">(if the currency is euro) two TARGET Days before the first day of that period; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">(for any other currency) two Business Days before the first day of that period,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations for that currency and period would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Ratio Period</b>&#148; means:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">a financial year of the Original Borrower; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">a period of approximately 12 months beginning on the first day of the second half of one financial year of the Original Borrower and ending on the last day of the first half of the next financial year of the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Reference Banks</b>&#148; means, in relation to LIBOR, Mandatory Cost and EURIBOR, the principal London offices of Citibank, N.A., HSBC Bank plc and The Royal Bank of Scotland plc or such</font></td>
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<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>8</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p13"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">other banks as may be appointed by the Agent in agreement with the Original Borrower (such agreement not to be unreasonably withheld).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Relevant Interbank Market</b>&#148; means, in relation to euro, the European interbank market and, in relation to any other currency, the London interbank market.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Repeating Representations</b>&#148; means each of the representations set out in Clauses 18.1 (<i>Status</i>) to 18.6 (<i>No Default</i>) (inclusive) and Clause 18.9 (<i>Litigation</i>) except to the extent waived in accordance with Clause 33 (<i>Amendments and Waivers</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Resignation Letter</b>&#148; means the Resignation Letter set out in Schedule 10 (<i>Form of Resignation Letter</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Retail Group</b>&#148; means TopCo PLC and the subsidiary undertakings of the Original Borrower which will remain subsidiary undertakings of TopCo PLC on the Separation Date.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Revolving Loan</b>&#148; means a loan to be made under the Facility which has not been converted into a Term Loan pursuant to the Term Out Option or the principal amount outstanding for the time being of that loan.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Rollover Loan</b>&#148; means, prior to the Term Out Date, one or more Loans:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">made or to be made on the same day that one or more maturing Revolving Loans is or are due to be repaid;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the aggregate amount of which is equal to or less than the maturing Revolving Loan(s) (unless it is more than the maturing Revolving Loan(s) solely because it arose as a result of the operation of Clause 6.2 (<i>Unavailability of a currency</i>));</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">in the same currency as the maturing Revolving Loan(s) (unless it arose as a result of the operation of Clause 6.2 (<i>Unavailability of a currency</i>)); and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">made or to be made to the same Borrower for the purpose of refinancing the maturing Revolving Loan(s).</font></td>
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    <td><font face="sans-serif" size="2">&#147;<b>Screen Rate</b>&#148; means:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in relation to LIBOR, the British Bankers Association Interest Settlement Rate for the relevant currency and period; and</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in relation to EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union for the relevant period,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td><font face="sans-serif" size="2">displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Original Borrower and the Lenders.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Security</b>&#148; means a mortgage, pledge, lien, hypothecation, security interest or other charge or encumbrance entered into for the purpose of securing any obligation of any person.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Selection Notice</b>&#148; means a notice substantially in the form set out in Part II of Schedule 3 (<i>Selection</i>&nbsp;<i>Notice</i>) given in accordance with Clause 10 (<i>Interest Periods</i>) in relation to a Term Loan.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Separation</b>&#148; means the proposal by the Original Borrower which will result in two separately listed groups; one of which will be the Hotels Group carrying out the hotels and soft drinks</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>9</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p14"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">businesses, and the other which will be the Retail Group carrying out the retail business, and to be effected substantially in the manner contemplated in the Separation Steps Paper.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Separation Date</b>&#148; means the date on which the shares in TopCo PLC and in NewCo PLC are (i)&nbsp;admitted to the Official List of the UK Listing Authority in accordance with paragraph 7.1 of the Listing Rules of the UK Listing Authority and (ii) admitted to trading on the London Stock Exchange plc.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Separation Steps Paper</b>&#148; means the paper dated the date of this Agreement and entitled &#145;Separation Steps Paper&#146;.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Specified Time</b>&#148; means a time determined in accordance with Schedule 6 (<i>Timetables</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Subsidiary</b>&#148; means a subsidiary within the meaning of Section 736 of the Companies Act 1985 and, for the purpose of Clause 20.4 (Financial Ratios) and in relation to financial statements of the Group, a subsidiary undertaking within the meaning of Section 258 of the Companies Act 1985.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Syndication Date</b>&#148; has the meaning given to that term in the Mandate Letter.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>TARGET</b>&#148; means Trans-European Automated Real-time Gross Settlement Express Transfer payment system.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>TARGET Day</b>&#148; means any day on which TARGET is open for the settlement of payments in euro.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tax</b>&#148; means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure by a Borrower to pay or any delay by a Borrower in paying any of the same).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Taxes Act</b>&#148; means the Income and Corporation Taxes Act 1988.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Termination Date</b>&#148; means, subject to Clause 7.2 (<i>Term Out Option</i>), the date which is 364 days after the date of this Agreement.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Term Loan</b>&#148; means any Revolving Loan converted to a term loan pursuant to the Term Out Option or the principal amount outstanding for the time being of that loan.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Term Out Date</b>&#148; means the date selected by the Original Borrower in the Term Out Notice on which Revolving Loan(s) are converted to Term Loan(s) pursuant to the Term Out Option.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Term</b> <b>Out Notice</b>&#148; has the meaning given to that term in Clause 7.2 (<i>Term Out Option</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Term Out Option</b>&#148; means the term out option set out in Clause 7.2 (<i>Term Out Option</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>TopCo PLC</b>&#148; means Hackplimco (No.111) PLC.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Total Commitments</b>&#148; means the aggregate of the Commitments, being &pound;3,000,000,000 at the date of this Agreement.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Total Consolidated Borrowings</b>&#148; means at any time the aggregate (without double counting) of the following (excluding for the avoidance of doubt any of the same arising between members of&nbsp;the&nbsp;Group):</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount of any moneys borrowed by any member of the Group and any outstanding overdraft debit balance of any member of the Group;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center>10</p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p15"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount or the nominal amount of any debenture, bond, note, loan stock or other security of any member of the Group or any redeemable preference shares of any member of the Group which have a redemption date (including a redemption date at the option of the issuer thereof otherwise than for tax reasons) falling less than one year after the Termination Date but so that there shall be excluded from this any redeemable preference shares of any Borrower issued to its shareholders by way of bonus issue;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount of any acceptance under any acceptance credit opened by a bank or other financial institution in favour of any member of the Group;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount of all moneys owing to a member of the Group in connection with the sale or discounting of receivables (otherwise than on a non-recourse basis);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount of any indebtedness of any member of the Group arising from any advance or deferred payment agreements arranged primarily as a method of raising finance or financing the acquisition of an asset;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">the capitalised element of any indebtedness of any member of the Group in respect of a lease entered into primarily as a method of raising finance or financing the acquisition of the asset leased;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">any fixed or minimum premium payable on the repayment or redemption of any instrument referred to in sub-paragraph (b) above; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">the outstanding principal amount of any indebtedness of any person other than to another member of the Group of a type referred to in sub-paragraphs (a) to (g) above which is the subject of a guarantee or indemnity by any member of the Group,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">but there shall be excluded:</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a proportion of what would otherwise be counted within Total Consolidated Borrowings attributable to any partly-owned Subsidiary of the Original Borrower equal to the proportion of its ordinary share capital not directly or indirectly attributable to the Original Borrower; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">amounts which would otherwise be counted within Total Consolidated Borrowings pending their application for the purpose of repaying the whole or any part of other amounts falling within Total Consolidated Borrowings provided that they are so applied within three months of being so borrowed or incurred.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Total Consolidated Net Borrowings</b>&#148; means Total Consolidated Borrowings less:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the amount of any cash balances (including time deposits) with banks in the United Kingdom which are authorised institutions under the Financial Services and Markets Act 2000, the Banking Act 1987 or with Building Societies registered under the Building Societies Act 1986, as applicable, or with banks outside the United Kingdom provided that it is within the sole power of the Original Borrower or the relevant Subsidiary to procure that those cash balances are always remittable to the United Kingdom;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">11</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p16"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">cash in hand in the United Kingdom or cash in hand outside the United Kingdom provided that it is within the sole power of the Original Borrower or the relevant Subsidiary to procure that cash is always remittable to the United Kingdom;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">certificates of deposit issued or guaranteed by a bank in the United Kingdom which is an authorised institution under the Banking Act 1987 or under the Financial Services and Markets Acts 2000;</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">freely negotiable and marketable debt securities or commercial paper with a maturity of not more than twelve months and which are rated A1 by Standard &amp; Poor&#146;s Corporation or P1 by Moody&#146;s&nbsp;Investors Service Inc.; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">debt securities issued by a sovereign or quasi-sovereign issuer which are rated not less than A by Standard &amp; Poor&#146;s Corporation or A2 by Moody&#146;s Investors Service Inc. or by any other issuer which are rated not less than AA by Standard &amp; Poor&#146;s Corporation or Aa2 by Moody&#146;s Investors Service Inc.,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">to which any member of the Group is beneficially entitled at that time free of any Security, all as shown in or derived from the Balance Sheet.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Transfer Certificate</b>&#148; means a certificate substantially in the form set out in Schedule 5 (<i>Form of Transfer Certificate</i>) or a recommended form of the LMA or any other form agreed between the Agent and the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Transfer Date</b>&#148; means, in relation to a transfer, the later of:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the proposed Transfer Date specified in the Transfer Certificate; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the date on which the Agent executes the Transfer Certificate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Unpaid Sum</b>&#148; means any sum due and payable but unpaid by a Borrower under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>US</b> <b>Dollars</b>&#148; or &#147;<b>$</b>&#148; means the lawful currency for the time being of the United States of America.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Utilisation</b>&#148; means a utilisation of the Facility.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Utilisation Date</b>&#148; means the date of a Utilisation, being the date on which the relevant Loan is to be made.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Utilisation Request</b>&#148; means a notice substantially in the form set out in Part 1 of Schedule 3 (<i>Utilisation Request</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>VAT</b>&#148; means value added tax as provided for in the Value Added Tax Act 1994 and any other tax of a similar nature.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Construction</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears, any reference in this Agreement to:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the &#147;<b>Agent</b>&#148;, the &#147;<b>Arranger</b>&#148;, any &#147;<b>Borrower</b>&#148;, any &#147;<b>Finance Party</b>&#148;, any &#147;<b>Lender</b>&#148; or any &#147;<b>Party</b>&#148; shall be construed so as to include its successors in title, permitted assigns and permitted transferees;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">&#147;<b>assets</b>&#148; includes all or part of a business, undertaking, property, assets, revenues (including any right to receive revenues) and uncalled capital wherever situated;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">12</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p17"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Consent</b>&#148; includes an approval, authorisation, exemption, filing, licence, order, permission, recording or registration (and references to obtaining consents shall be continued accordingly);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">a &#147;<b>Finance Document</b>&#148; or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended or novated;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(v)</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>indebtedness</b>&#148; includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(vi)</font></td>
    <td><font face="sans-serif" size="2">a &#147;<b>person</b>&#148; includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(vii)</font></td>
    <td><font face="sans-serif" size="2">a &#147;<b>regulation</b>&#148; includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, which is generally complied with by those to whom it is addressed) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(viii)</font></td>
    <td><font face="sans-serif" size="2">a &#147;<b>subsidiary</b>&#148; has the meaning given to it in Section 736 of the Companies Act 1985 and &#147;<b>subsidiary undertaking</b>&#148; has the same meaning given to it in Section 258 of the Companies Act 1985;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ix) </font></td>
    <td><font face="sans-serif" size="2">the &#147;<b>Winding-up</b>&#148; of a person also includes the amalgamation, reconstruction, administration, dissolution, liquidation merger or consolidation of that person and any equivalent of analogous procedure under the law of any jurisdiction;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(x)</font></td>
    <td><font face="sans-serif" size="2">a provision of law is a reference to that provision as amended or re-enacted; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(xi)</font></td>
    <td><font face="sans-serif" size="2">a time of day is a reference to London time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Section, Clause and Schedule headings are for ease of reference only.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">A Potential Event of Default or an Event of Default is &#147;<b>continuing</b>&#148; if it has not been remedied or waived.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Third
  Party Rights</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">13</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p18"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 2<br>  THE FACILITY</b></font></p>
<p><font face="sans-serif" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>THE FACILITY</b></font></p>
<p><font face="sans-serif" size="2">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The Facility</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Subject to the terms of this Agreement, the Lenders make available to the Borrowers a multicurrency revolving loan facility with a term out option in an aggregate amount equal to the Total Commitments.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Finance Parties&#146; rights and obligations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from the Borrower shall be a separate and independent debt.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p18a"></a>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PURPOSE</b></font></p>
<p><font face="sans-serif" size="2">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Purpose</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Borrower shall apply all amounts borrowed by it under the Facility:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">towards refinancing the Existing Facility;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">towards general corporate purposes of the Group; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">in connection with, or for the purpose of, the Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Monitoring</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p18b"></a>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CONDITIONS
  OF UTILISATION</b></font></p>
<p><font face="sans-serif" size="2">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Initial conditions precedent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No Borrower may deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Schedule 2 (<i>Conditions Precedent</i>) in form and substance reasonably satisfactory to the Agent. The Agent shall notify the Original Borrower and the Lenders promptly upon being so satisfied.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Further conditions precedent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Lenders will only be obliged to comply with Clause 5.4 (<i>Lenders&#146; participation</i>) if on the date of the Utilisation Request and on the proposed Utilisation Date:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Event of Default or Potential Event of Default is continuing or would result from the proposed Loan; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">14</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p19"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the Repeating Representations to be made by each Borrower have been complied with and are true in all material respects by reference to the circumstances then existing.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Conditions relating to Optional Currencies</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A currency will constitute an Optional Currency in relation to a Loan if it is euro or US Dollars or:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">it is readily available in the amount required and freely convertible into the Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation Date for that Loan; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">it has been approved by the Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Agent of the relevant Utilisation Request or Selection Notice for that Loan.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If by the Specified Time the Agent has received a written request from the Original Borrower for a currency to be approved under paragraph (a)(ii) above, the Agent will notify the Lenders of that request by the Specified Time. Based on any responses received by the Agent by the Specified Time, the Agent will confirm to the Original Borrower by the Specified Time:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">whether or not the Lenders have granted their approval; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if approval has been granted, the minimum amount (and, if required, integral multiples) for any subsequent Utilisation in that currency.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Maximum number of Loans</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation more than 20&nbsp;Loans would be outstanding.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A Borrower may not request that a Term Loan be divided if, as a result of the proposed division, more than 20 Term Loans would be outstanding.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Any Loan made by a single Lender under Clause 6.2 (<i>Unavailability of a currency</i>) shall not be taken into account in this Clause 4.4.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">15</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p20"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 3<br>  UTILISATION</b></font></p>
<p><font face="sans-serif" size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>UTILISATION</b></font></p>
<p><font face="sans-serif" size="2">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Delivery of a Utilisation Request</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A Borrower may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Completion of a Utilisation Request</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the proposed Utilisation Date is a Business Day within the Availability Period;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the currency and amount of the Utilisation comply with Clause 5.3 (<i>Currency and</i> <i>amount</i>);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the proposed Interest Period complies with Clause 10 (<i>Interest Periods</i>); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">it specifies the account and bank (which must be in the principal financial centre of the country of the currency of the Utilisation or, in the case of euro, the principal financial centre of a Participating Member State in which banks are open for general business on that day or London or, such other financial centre as the relevant Borrower, with the consent of the Agent, may select) to which the proceeds of the Utilisation are to be credited.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Only one Loan may be requested in each Utilisation Request.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Currency and amount</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The currency specified in a Utilisation Request must be the Base Currency or an Optional Currency.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The amount of the proposed Loan must be:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">if the currency selected is the Base Currency, a minimum of &pound;25,000,000 and in multiples of &pound;1,000,000 or, if less, the Available Facility; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if the currency selected is euro, a minimum of &#128;40,000,000 and in multiples of &#128;1,000,000 or, if less, the Available Facility; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">if the currency selected is US Dollars, a minimum of $40,000,000 and in multiples of $1,000,000 or, if less, the Available Facility; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">if the currency selected is an Optional Currency other than euro or US Dollars, the minimum amount (and, if required, integral multiple) as agreed between the Agent, the Lenders and the Original Borrower provided that if no such agreement is reached between the Agent, the Lenders and the Original Borrower the minimum amount shall be the equivalent at that time of &pound;25,000,000 and multiples of &pound;1,000,000, such amount to be rounded as reasonably determined by the Agent and notified to the Original Borrower; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(v)</font></td>
    <td><font face="sans-serif" size="2">in any event such that its Base Currency Amount is less than or equal to the Available Facility.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<p><font face="sans-serif" size="2"><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">16</font></p>
</font>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p21"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Lenders&#146; participation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The amount of each Lender&#146;s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall determine the Base Currency Amount of each Loan which is to be made in an Optional Currency and shall notify each Lender of the amount, currency and the Base Currency Amount of each Loan and the amount of its participation in that Loan, in each case by the Specified Time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p21a"></a>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>OPTIONAL
  CURRENCIES</b></font></p>
<p><font face="sans-serif" size="2">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Selection of currency</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Borrower shall select the currency of a Loan:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">(in the case of an initial Utilisation) in the Utilisation Request; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width=3%><font face="sans-serif" size="2">(ii)</font></td>
    <td> <font size="2" face="sans-serif">(in relation to a Term Loan after the
      initial Utilisation) in a Selection Notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If a Borrower fails to issue a Selection Notice in relation to a Term Loan, it shall be deemed to have requested that the Loan will remain denominated for its next Interest Period in the same currency in which it is then outstanding.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If a Borrower issues a Selection Notice requesting a change of currency and the first day of the requested Interest Period is not a Business Day for the new currency, the Agent shall promptly notify that Borrower and the Lenders and the Loan will remain in the existing currency (with Interest Periods running from one Business Day until the next Business Day) until the next day which is a Business Day for both currencies, on which day the requested Interest Period will begin.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Unavailability of a currency</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If before the Specified Time on any Quotation Day:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">a Lender notifies the Agent that the Optional Currency requested is not readily available to it in the amount required; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">a Lender notifies the Agent that compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">the Agent will promptly give notice to the relevant Borrower to that effect and in any event by the Specified Time on that day. In this event, any Lender that gives notice pursuant to this Clause 6.2 will be required to participate in the Loan in the Base Currency (in an amount equal to that Lender&#146;s proportion of the Base Currency Amount or, in respect of a Rollover Loan, an amount equal to that Lender&#146;s proportion of the Base Currency Amount of the Rollover Loan that is due to be made) and its participation will be treated as a separate Loan denominated in the Base Currency during that Interest Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Change of currency</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If a Term Loan is to be denominated in different currencies during two successive Interest Periods:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p22"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">if the currency for the second Interest Period is an Optional Currency, the amount of the Loan in that Optional Currency will be calculated by the Agent as the amount of that Optional Currency equal to the Base Currency Amount of the Loan at the Agent&#146;s Spot Rate of Exchange at the Specified Time;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if the currency for the second Interest Period is the Base Currency, the amount of the Loan will be equal to the Base Currency Amount;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">(unless the Agent and the Borrower agree otherwise in accordance with paragraph (b) below) the Borrower that has borrowed the Loan shall repay it on the last day of the first Interest Period in the currency in which it was denominated for that Interest Period; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">(subject to Clause 4.2 (<i>Further conditions precedent</i>)) the Lenders shall re-advance the Loan in the new currency in accordance with Clause 6.5 (<i>Agent&#146;s calculations</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If the Agent and the Borrower that has borrowed the Loan agree, the Agent shall:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">apply the amount paid to it by the Lenders pursuant to paragraph (a)(iv) above (or so much of that amount as is necessary) in or towards purchase of an amount in the currency in which the Term Loan is outstanding for the first Interest Period; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">use the amount it purchases in or towards satisfaction of the relevant Borrower&#146;s obligations under paragraph (a)(iii) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If the amount purchased by the Agent pursuant to paragraph (b)(i) above is less than the amount required to be repaid by the Borrower, the Agent shall promptly notify that Borrower and that Borrower shall, on the last day of the first Interest Period, pay an amount to the Agent (in the currency of the outstanding Term Loan for the first Interest Period) equal to the difference.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">If any part of the amount paid to the Agent by the Lenders pursuant to paragraph (a)(iv) above is not needed to purchase the amount required to be repaid by the relevant Borrower, the Agent shall promptly notify that Borrower and pay that Borrower, on the last day of the first Interest Period that part of that amount (in the new currency).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Same Optional Currency during successive Interest Periods</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If a Term Loan is to be denominated in the same Optional Currency during two successive Interest Periods, the Agent shall calculate the amount of the Term Loan in the Optional Currency for the second of those Interest Periods (by calculating the amount of Optional Currency equal to the Base Currency Amount of that Term Loan at the Agent&#146;s Spot Rate of Exchange at the Specified Time) and (subject to paragraph (b) below):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">if the amount calculated is less than the existing amount of that Term Loan in the Optional Currency during the first Interest Period, promptly notify the Borrower that has borrowed the Loan and that Borrower shall pay, on the last day of the first Interest Period, an amount equal to the difference; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if the amount calculated is more than the existing amount of that Term Loan in the Optional Currency during the first Interest Period, promptly notify each Lender and, if no Event of Default is continuing, each Lender shall, on the last day of the first Interest Period, pay its participation in an amount equal to the difference.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If the calculation made by the Agent pursuant to paragraph (a) above shows that the amount of the Term Loan in the Optional Currency for the second of those Interest Periods converted into </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">18</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p23"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">the Base Currency at the Agent&#146;s Spot Rate of Exchange at the Specified Time has increased or decreased by less than 5 per cent. compared to its Base Currency Amount (taking into account any payments made pursuant to paragraph (a) above), no notification shall be made by the Agent and no payment shall be required under paragraph (a) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Agent&#146;s calculations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">All calculations made by the Agent pursuant to this Clause 6 will take into account any repayment, prepayment, consolidation or division of Term Loans to be made on the last day of the first Interest Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Lender&#146;s participation in a Loan will, subject to paragraph (a) above, be determined in accordance with paragraph (b) of Clause 5.4 (<i>Lenders&#146; participation</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p24"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 4</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>REPAYMENT, PREPAYMENT AND CANCELLATION</b></font></p>
<p><font face="sans-serif" size="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>REPAYMENT</b></font></p>
<p><font face="sans-serif" size="2">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Repayment of Loans</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 7.2 (<i>Term Out Option</i>), each Borrower that has drawn a Revolving Loan shall repay that Revolving Loan on the last day of its Interest Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower shall repay each Term Loan on the Termination Date as extended by Clause 7.2 (<i>Term</i>&nbsp;<i>Out Option</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Term Out Option</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower may elect to convert all or part of the Revolving Loans into Term Loans.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower may exercise the term out option by not less than 5 Business Days&#146; notice (substantially in the form set out in Schedule 7 (<i>Form of Term Out Notice</i>)) (the &#147;<b>Term Out Notice</b>&#148;) to the Agent. Only one such notice may be given and such notice is irrevocable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">That notice shall specify the Revolving Loan(s) in relation to which the Term Out Option is being exercised and the proposed Term Out Date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall promptly notify each Lender of the Loans specified in the Term Out Notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">If the Term Out Option is so exercised and the matters set out in paragraph (f) below are satisfied, then on the Term Out Date (which shall be a date prior to the original Termination Date):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Revolving Loan(s) to be converted shall be converted into Term Loans;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">any Available Commitment shall be automatically cancelled;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii) </font></td>
    <td><font face="sans-serif" size="2">the Termination Date shall be extended to the date falling 18 months from the date of this Agreement; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv) </font></td>
    <td><font face="sans-serif" size="2">the fee specified in Clause 12.4 (<i>Term Out fee</i>) shall become due and payable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">The following must be satisfied for the Term Out Option to be effected as specified in paragraph (e) above:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Repeating Representations are true in all material respects; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">no Default is continuing or would result from the Term Loan(s).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p24a"></a>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PREPAYMENT
  AND CANCELLATION</b></font></p>
<p><font face="sans-serif" size="2">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Illegality</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">that Lender shall promptly notify the Agent upon becoming aware of that event;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">upon the Agent notifying the Original Borrower, the Commitment of that Lender will be immediately cancelled; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">each Borrower shall repay that Lender&#146;s participation in the Loans on the last day of the Interest Period for each Loan occurring after the Agent has notified the Original Borrower</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">20</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p25"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Change of control</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If any person or group of persons acting in concert gains control of the Original Borrower (other than as a result of, or in connection with, the Separation):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Original Borrower shall notify the Agent within 14 days of becoming aware of that event;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">a Lender shall not be obliged to fund a Utilisation (except for a Rollover Loan); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii) </font></td>
    <td><font face="sans-serif" size="2">if a Lender so requires, the Agent shall, by not less than 30 days&#146; notice to the Original Borrower, cancel the Commitment of that Lender whereupon it shall be immediately reduced to zero and the participation of that Lender in each Loan and all other amounts due to it will become immediately due and payable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">For the purpose of paragraph (a) above &#147;<b>control</b>&#148; has the meaning given to it in section 840 of the Taxes Act.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">For the purpose of paragraph (a) above &#147;<b>acting in concert</b>&#148; has the meaning given to it in the City Code on Takeovers and Mergers.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Debt Issues</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If the Original Borrower or any member of the Group raises any External Debt then the Original Borrower shall procure that the Net Proceeds of that External Debt are applied in reduction of the Facility on the date of receipt of such Net Proceeds as follows:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in cancellation of the Total Commitments (with any such cancellation reducing the Commitment of the Lenders rateably); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in prepayment of a sufficient amount of the Loans to the extent necessary so that the aggregate of the Base Currency Amounts of the outstanding Loans after that prepayment is equal to or less than the reduced amount of the Total Commitments.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Disposals</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Other than in connection with or for the purposes of the Separation, if the Original Borrower or any member of the Group receives Major Disposal Proceeds then the Original Borrower shall procure that an amount equal to:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the first &pound;1,000,000,000 in aggregate of all Net Proceeds of Major Disposal Proceeds (calculated for the avoidance of doubt on a cumulative basis); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">thereafter, 50 per cent. of all Net Proceeds of Major Disposal Proceeds,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">are applied in reduction of the Facility on the date of receipt of such Net Proceeds as follows:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">in cancellation of the Total Commitments (with any such cancellation reducing the Commitment of the Lenders rateably); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">in prepayment of a sufficient amount of the Loans to the extent necessary so that the aggregate of the Base Currency Amounts of the outstanding Loans after that prepayment is equal to or less than the reduced amount of the Total Commitments.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">21</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p26"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Separation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">On the Separation Date:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Original Borrower shall notify the Agent that Separation has occurred; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">the Facility will be automatically cancelled in full and all outstanding Loans together with accrued interest and all other amounts accrued under the Finance Documents shall become immediately due and payable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall procure that any amounts received by TopCo PLC and/or NewCo PLC in respect of drawings under the syndicated loan facilities to be made available by the Arranger and others to each of TopCo PLC and NewCo PLC are used (directly or indirectly) in immediate prepayment of outstanding Loans hereunder together with accrued interest and all other amounts accrued under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Voluntary cancellation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower may:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">if it gives the Agent not less than 5 Business Days&#146; (or such shorter period as the Majority Lenders may agree) prior notice; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in connection with the Separation, immediately without prior notice,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">cancel the whole or any part (being a minimum amount of &pound;20,000,000 in multiples of &pound;5,000,000) of the Available Facility. Any cancellation under this Clause 8.6 shall reduce the Commitments of the Lenders rateably.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Voluntary prepayment of Loans</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A Borrower may:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">if it gives the Agent not less than 5 Business Days&#146; (or such shorter period as the Majority Lenders may agree) prior notice; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in connection with the Separation, immediately without prior notice,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">prepay the whole or any part of a Loan (but, if in part, being an amount that reduces the Base Currency Amount of the Loan by a minimum amount of &pound;40,000,000 and in multiples of &pound;10,000,000).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Right of repayment and cancellation in relation to a single Lenders</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">any sum payable to any Lenders by a Borrower is required to be increased under paragraph (c) of Clause 13.2 (<i>Tax gross-up</i>);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">any Lender claims indemnification from the Original Borrower under Clause 13.3 (<i>Tax indemnity</i>) or Clause 14.1 (<i>Increased costs</i>); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii) </font></td>
    <td><font face="sans-serif" size="2">any Lender notifies the Agent of its Additional Cost Rate under paragraph 3 of Schedule 4 (<i>Mandatory Cost formulae</i>),</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">the Original Borrower may, whilst (in the case of paragraphs (i) and (ii) above) the circumstance giving rise to the requirement or indemnification continues, or (in the case of paragraph (iii) above) that Additional Cost Rate is greater than zero, give the Agent 5 Business Days&#146; notice of</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">22</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p27"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender&#146;s participation in the Loans.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">On the last day of each Interest Period which ends after the Original Borrower has given notice under paragraph (a) above (or, if earlier, the date specified by the Original Borrower in that notice), each Borrower shall repay that Lender&#146;s participation in each Loan appropriate to that Interest Period (or as otherwise specified in that notice).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Restrictions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears in this Agreement, any part of the Facility which is prepaid prior to the Term Out Date may be reborrowed in accordance with the terms of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">No Borrower may reborrow all or any part of a Term Loan which is prepaid.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">No Borrower shall repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">If the Agent receives a notice under this Clause 8 it shall promptly forward a copy of that notice to either the Original Borrower or the affected Lender, as appropriate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">23</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p28"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 5</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>COSTS OF UTILISATION</b></font></p>
<p><font face="sans-serif" size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INTEREST</b></font></p>
<p><font face="sans-serif" size="2">9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Calculation of interest</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Margin;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">LIBOR or, in relation to any Loan in euro, EURIBOR; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Mandatory Cost, if any.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Payment of interest</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Borrower to which a Loan has been made shall pay accrued interest on each Loan on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Default interest</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If a Borrower fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is the sum of 1 per cent. and the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration of 3 months or such shorter period selected by the Agent (acting reasonably). Any interest accruing under this Clause 9.3 shall be immediately payable by the Borrower on demand by the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">the rate of interest applying to the overdue amount during that first Interest Period shall be the sum of 1 per cent. and the rate which would have applied if the overdue amount had not become due.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Notification of rates of interest</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Agent shall promptly notify the Lenders and the relevant Borrower of the determination of a rate of interest under this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p28a"></a>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INTEREST
  PERIODS</b></font></p>
<p><font face="sans-serif" size="2">10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Selection of Interest Periods</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Borrower may select an Interest Period for a Loan in the Utilisation Request for that Loan or (in respect of a Term Loan) in a Selection Notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">24</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p29"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Selection Notice for a Term Loan is irrevocable and must be delivered to the Agent by a Borrower to which that Term Loan was made not later than the Specified Time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If a Borrower fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will be one Month.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">Subject to this Clause 10, a Borrower may select an Interest Period of 1, 2, 3 or 6 months or any other period agreed between the Original Borrower and the Agent (acting on the instructions of all the Lenders).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">Prior to the Separation Date, a Borrower may only select an Interest Period of 2 months or less (as reasonably agreed by the Lenders) as may be necessary to ensure that the Interest Period ends on the Separation Date provided that if the Separation Date has not occurred by the earlier of (i) the date falling 3 months after the last date on which any shareholder&#146;s circular relating to the Separation is posted to shareholders of the Original Borrower and (ii) 31 May 2003, Interest Periods as specified in paragraph (d) above may be selected.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">An Interest Period for a Loan shall not extend beyond the Termination Date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">Each Interest Period for a Term Loan shall start on the Term Out Date or on the last day of its preceding Interest Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">A Revolving Loan has one Interest Period only.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Non-Business Days</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Consolidation and division of Term Loans</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to paragraph (b) below, if two or more Interest Periods:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">relate to Term Loans in the same currency;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">end on the same date; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">are made to the same Borrower,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">those Term Loans will, unless that Borrower (or the Original Borrower on its behalf) specifies to the contrary in the Selection Notice for the next Interest Period, be consolidated into, and treated as, a single Term Loan on the last day of the Interest Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 4.4 (<i>Maximum number of Loans</i>) and Clause 5.3 (<i>Currency and amount</i>), if a Borrower (or the Original Borrower on its behalf) requests in a Selection Notice that a Term Loan be divided into two or more Term Loans, that Term Loan will, on the last day of its Interest Period, be so divided with Base Currency Amounts specified in that Selection Notice, being an aggregate Base Currency Amount equal to the Base Currency Amount of the Term Loan immediately before its division.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p29a"></a>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CHANGES
  TO THE CALCULATION OF INTEREST</b></font></p>
<p><font face="sans-serif" size="2">11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Absence of quotations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 11.2 (<i>Market disruption</i>), if LIBOR or, if applicable, EURIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">25</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p30"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">quotation by the Specified Time on the Quotation Day, the applicable LIBOR or EURIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Market disruption</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender&#146;s share of that Loan for the Interest Period shall be the rate per annum which is the sum of:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Margin;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the Mandatory Cost, if any, applicable to that Lender&#146;s participation in the Loan.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">In this Agreement &#147;<b>Market Disruption Event</b>&#148; means:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to the Agent to determine LIBOR or EURIBOR for the relevant currency and Interest Period; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 50 per cent. of that Loan) that, by reason of factors affecting the Relevant Interbank Market, the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR or, if applicable, EURIBOR.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Alternative basis of interest or funding</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If a Market Disruption Event occurs and the Agent or the Original Borrower so requires, the Agent and the Original Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Original Borrower, be binding on all Parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Break Costs</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower shall, within five Business Days of a demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p30a"></a>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>FEES</b></font></p>
<p><font face="sans-serif" size="2">12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Commitment fee</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall pay to the Agent (for the account of each Lender) a fee in the Base Currency computed at the rate of:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">26</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p31"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">0.10 per cent. per annum on that Lender&#146;s Available Commitment for the period from the date of this Agreement up to and including the earlier of the date on which the Original Borrower announces that the Separation is not to proceed and 31 May 2003; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">30 per cent. of the Margin on that Lenders Available Commitment for the remainder of the Availability Period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender&#146;s Commitment at the time the cancellation is effective.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Underwriting and Syndication fee</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall pay to the Arranger (for its own account and the account of the Lenders, as applicable) the underwriting and syndication fee in the amount and at the times agreed in a Fee Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">12.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Agency fee</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">12.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Term Out fee</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall pay to the Agent (for the account of each Lender) a term out fee in the Base Currency of 0.10 per cent. flat on that Lender&#146;s participation in the Base Currency Amount of the Loan(s) in relation to which the Term Out Option has been exercised, such fee to be paid on the Term Out Date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">27</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p32"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 6</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>ADDITIONAL PAYMENT OBLIGATIONS</b></font></p>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.</font></td>
    <td><font face="sans-serif" size="2"><b>TAX GROSS UP AND INDEMNITIES</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.1</font></td>
    <td><font face="sans-serif" size="2"><b>Definitions</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">In this Agreement:</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Protected Party</b>&#148; means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Qualifying Lender</b>&#148; means a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a Lender:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">which is a bank (as defined for the purpose of section 349 of the Taxes Act) making an advance under a Finance Document; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">in respect of an advance made under a Finance Document by a person that was a bank (as&nbsp;defined for the purpose of section 349 of the Taxes Act) at the time that that advance was&nbsp;made,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">a Lender which is:</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">a company resident in the United Kingdom for United Kingdom tax purposes;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">a partnership each member of which is a company resident in the United Kingdom for United&nbsp;Kingdom tax purposes; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(C)</font></td>
    <td><font face="sans-serif" size="2">a company not so resident in the United Kingdom which carries on a trade in the United&nbsp;Kingdom through a branch or agency and which brings into account interest payable in respect of that advance in computing its chargeable profits (within the meaning given by section 11(2) of the Taxes Act); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">a Treaty Lender.</font></td>
  </tr>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tax Confirmation</b>&#148; means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a company resident in the United Kingdom, or a partnership each member of which is a company resident in the United Kingdom, for United Kingdom tax purposes; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and that interest payable in respect of that advance falls to be brought into account in computing the chargeable profits of that company for the purposes of section 11(2) of the Taxes Act.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tax Credit</b>&#148; means a credit against, relief or remission for, or repayment of any Tax.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tax Deduction</b>&#148; means a deduction or withholding for or on account of Tax from a payment under a Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">28</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p33"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tax Payment</b>&#148; means the amount by which a payment made by the Borrower to a Finance Party is increased under Clause 13.2 (<i>Tax gross-up</i>) or a payment under Clause 13.3 (<i>Tax indemnity</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Treaty Lender</b>&#148; means a Lender which:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">is treated as a resident of a Treaty State for the purposes of the Treaty; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">does not carry on a business in the United Kingdom through a permanent establishment with which that Lender&#146;s participation in the Loans is effectively connected.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Treaty State</b>&#148; means a jurisdiction having a double taxation agreement (a &#147;<b>Treaty</b>&#148;) with the United&nbsp;Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on&nbsp;interest.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>UK Non-Bank Lender</b>&#148; means, where a Lender becomes a Party to this Agreement after the day on which this Agreement is entered into, a Lender which gives a Tax Confirmation in the Transfer Certificate which it executes on becoming a Party to this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears, in this Clause 13 a reference to &#147;determines&#148; or &#147;determined&#148; means a determination made in the absolute discretion of the person making the determination.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.2</font></td>
    <td><font face="sans-serif" size="2"><b>Tax gross-up</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower shall make all payments to be made by it without any Tax Deduction, unless a Tax&nbsp;Deduction is required by law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly upon becoming aware that a Borrower must make a Tax&nbsp;Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly. Similarly, a Lender shall promptly notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such notification from a Lender it shall promptly notify the Original Borrower and the relevant Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If a Tax Deduction is required by law to be made by a Borrower, the amount of the payment due from that Borrower shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">A Borrower is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect of tax imposed by the United Kingdom from a payment of interest on a Loan, if on the date on which the payment falls due:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the payment could have been made to the relevant Lender without a Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or&nbsp;in the interpretation, administration, or application of) any law or Treaty, or any published practice or concession of any relevant taxing authority;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">(ii)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">the relevant Lender is a UK Non-Bank Lender, or would have been a UK Non-Bank Lender were it not for any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">29</font></p>
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<page>
<a name="p34"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">law or Treaty, or any published practice or concession of any relevant taxing authority; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">the Board of the Inland Revenue has given (and not revoked) a direction under section 349C of the Taxes Act (as that provision has effect on the date on which the relevant Lender became a party to this Agreement) which relates to that payment and that Borrower has notified that UK Non-Bank Lender of the precise terms of that notice; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the relevant Lender is a Treaty Lender and the Borrower making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (g) below.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">If a Borrower is required to make a Tax Deduction, it shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower making the Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">A Treaty Lender and each Borrower shall co-operate in promptly completing any procedural formalities (including completing and submitting appropriate documentation to the applicable taxation authorities) necessary for that Borrower to obtain authorisation to make that payment without a Tax Deduction.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">A UK Non-Bank Lender shall promptly notify the Original Borrower and the Agent if there is any change in the position from that set out in the Tax Confirmation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">Each Lender severally warrants to each Borrower that it is a Qualifying Lender on the date it becomes a Party to this Agreement. If at any time after this Agreement is entered into any Lender becomes aware that is not or will not or will cease to be a Qualifying Lender, it shall promptly notify the Original&nbsp;Borrower and the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.3</font></td>
    <td><font face="sans-serif" size="2"><b>Tax Indemnity</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall (within five Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party reasonably determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Paragraph (a) shall not apply:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">with respect to any Tax assessed on a Finance Party:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">under the law of the jurisdiction in which that Finance Party&#146;s Facility Office is located in respect of amounts received or receivable in that jurisdiction,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font size="2" face="sans-serif">30</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p35"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">to the extent a loss, liability or cost:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">is compensated for by an increased payment under Clause 13.2 (<i>Tax gross-up</i>); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">would have been compensated for by an increased payment under Clause 13.2 (<i>Tax</i>&nbsp;<i>gross-up</i>) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 13.2 (<i>Tax gross-up</i>) applied.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">A Protected Party making, or intending to make, a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall promptly notify the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">A Protected Party shall, on receiving a payment from the Original Borrower under this Clause 13.3, notify the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.4</font></td>
    <td><font face="sans-serif" size="2"><b>Tax Credit</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If a Borrower makes a Tax Payment and the relevant Finance Party determines that:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part or to that Tax Payment; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">that Finance Party has obtained, utilised and retained that Tax Credit,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">the Finance Party shall pay an amount to that Borrower which that Finance Party determines will leave it (after that payment) in no better and no worse position in respect of its Tax Liabilities than it would have been had the Borrower not been required to make the Tax Payment.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.5</font></td>
    <td><font face="sans-serif" size="2"><b>Stamp taxes</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall pay and, within five Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.6</font></td>
    <td><font face="sans-serif" size="2"><b>Value added tax</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">All consideration expressed to be payable under a Finance Document by any Party to a Finance Party shall be deemed to be exclusive of any VAT. If VAT is chargeable on any supply made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay to the Finance Party (in&nbsp;addition to and at the same time as paying the consideration) an amount equal to the amount of the&nbsp;VAT.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party against all VAT incurred by the Finance Party in respect of the costs or expenses save to the extent that the Finance Party is entitled to repayment or credit in respect of such VAT.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">13.7</font></td>
    <td><font face="sans-serif" size="2"><b>PTR Scheme</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Treaty Lender:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">irrevocably appoints the Agent to act as syndicate manager under, and authorises the Agent to operate, and take any action necessary or desirable under, the PTR Scheme in connection with the Facility;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">31</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p36"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">shall co-operate with the Agent in completing any procedural formalities necessary under the PTR Scheme, and shall promptly supply to the Agent such information as the Agent may request in connection with the operation of the PTR Scheme;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">without limiting the liability of any Borrower under this Agreement, shall, within 5 Business Days of demand, indemnify the Agent for any liability of loss incurred by the Agent as a result of the Agent acting as syndicate manager under the PTR Scheme in connection with the Treaty Lender&#146;s participation in any Loan (except to the extent the liability or loss arises directly from the Agent&#146;s gross negligence or wilful misconduct); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">shall, within 5 Business Days of demand, indemnify each Borrower for any Tax which such Borrower becomes liable to pay in respect of any prepayments made to such Treaty Lender arising as a result of any incorrect information supplied by such Treaty Lender under paragraph&nbsp;(iii)&nbsp;above which results in a provisional authority issued by the UK Inland Revenue under the PTR&nbsp;Scheme being withdrawn.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower acknowledges that it is fully aware of its contingent obligations under the PTR Scheme and shall:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">promptly supply to the Agent such information as the Agent may request in connection with the operation of the PTR Scheme; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">act in accordance with any provisional notice issued by the UK Inland Revenue under the PTR&nbsp;Scheme.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Agent agrees to provide, as soon as reasonably practicable, a copy of any provisional authority issued to it under the PTR Scheme in connection with any Loan to those Borrowers specified in such provisional authority.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">All Parties acknowledge that the Agent:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">is entitled to rely completely upon information provide to it in connection with sub-paragraph (a) or (b) above;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">is not obliged to undertake any enquiry into the accuracy of such information, nor into the status of the Treaty Lender or, as the case may be, Borrower providing such information; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">shall have no liability to any person for the accuracy of any information it submits in connection with paragraph (a)(i) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">In this Clause &#147;PTR Scheme&#148;
      means the Provisional Treaty Relief scheme as described in Inland Revenue
      Guidelines dated July 1999 and administered by the Inland Revenue&#146;s
      Centre for Non-Residents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><a name="p36a"></a>14.</font></td>
    <td><font face="sans-serif" size="2"><b>INCREASED COSTS</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">14.1</font></td>
    <td><font face="sans-serif" size="2"><b>Increased costs</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 14.3 (<i>Exceptions</i>) the Original Borrower shall, within five Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Holding Companies as a result of (i) the introduction</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">32</font></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p37"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">of or any change in (or in the interpretation or application of) any law or regulation or (ii) compliance with any law or regulation made after the date of this Agreement.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">In this Agreement &#147;<b>Increased Costs</b>&#148; means:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a reduction in the rate of return from the Facility or on a Finance Party&#146;s or any of its Holding Companies overall capital;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">an additional or increased cost; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">a reduction of any amount due and payable under any Finance Document,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">which is incurred or suffered by a Finance Party or any of its Holding Companies to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">14.2</font></td>
    <td><font face="sans-serif" size="2"><b>Increased cost claims</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Finance Party intending to make a claim pursuant to Clause 14.1 (<i>Increased costs</i>) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Original&nbsp;Borrower.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount and basis of its Increased Costs.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">14.3</font></td>
    <td><font face="sans-serif" size="2"><b>Exceptions</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Clause 14.1 (<i>Increased costs</i>) does not apply to the extent any Increased Cost is:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">attributable to a Tax Deduction required by law to be made by a Borrower;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">compensated for by Clause 13.3 (<i>Tax indemnity</i>) (or would have been compensated for under Clause 13.3 (<i>Tax indemnity</i>) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 13.3 (<i>Tax indemnity</i>) applied);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">compensated for by the payment of the Mandatory Cost; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">attributable to the negligence or wilful breach by the relevant Finance Party or its Holding Companies of any law or regulation.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">In this Clause 14.3, a reference to a &#147;<b>Tax</b> <b>Deduction</b>&#148; has the same meaning given to the term in Clause 13.1 (<i>Definitions</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><a name="p37a"></a>15.</font></td>
    <td><font face="sans-serif" size="2"><b>OTHER INDEMNITIES</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">15.1</font></td>
    <td><font face="sans-serif" size="2"><b>Currency Indemnity</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If any sum due from a Borrower under the Finance Documents (a &#147;<b>Sum</b>&#148;), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the &#147;<b>First</b>&nbsp;<b>Currency</b>&#148;) in which that Sum is payable into another currency (the &#147;<b>Second</b> <b>Currency</b>&#148;) for the purpose of:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">making or filing a claim or proof against that Borrower;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration&nbsp;proceedings,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">that Borrower shall as an independent obligation, within five Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">33</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p38"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">15.2</font></td>
    <td><font face="sans-serif" size="2"><b>Other indemnities</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall, within five Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the occurrence of any Event of Default;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">a failure by a Borrower to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 26 (<i>Sharing</i>&nbsp;<i>among the Finance Parties</i>);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">funding, or making arrangements to fund, its participation in a Loan requested by a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by a&nbsp;Borrower.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">15.3</font></td>
    <td><font face="sans-serif" size="2"><b>Indemnity to the Agent</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">investigating any event which it reasonably believes is an Event of Default; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">entering into or performing any foreign exchange contract for the purposes of paragraph (b) of Clause 6.3 (<i>Change of Currency</i>); or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">acting or relying on any notice, request or instruction made by a Borrower which it reasonably believes to be genuine, correct and appropriately authorised.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><a name="p38a"></a>16.</font></td>
    <td><font face="sans-serif" size="2"><b>MITIGATION BY THE LENDERS</b></font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">16.1</font></td>
    <td><font face="sans-serif" size="2"><b>Mitigation</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Finance Party shall, in consultation with the Original Borrower, take all reasonable steps that are acceptable to the Original Borrower and the Agent to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 8.1 (<i>Illegality</i>), Clause 13 (<i>Tax gross-up and indemnities</i>), Clause 14 (<i>Increased</i> <i>costs</i>) or paragraph 3 of Schedule 4 (<i>Mandatory Cost formulae</i>) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Paragraph (a) above does not in any way limit the obligations of a Borrower under the Finance&nbsp;Documents.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">34</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p39"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">16.2</font></td>
    <td><font face="sans-serif" size="2"><b>Limitation of liability</b></font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A Finance Party is not obliged to take any steps under Clause 16.1 (<i>Mitigation</i>) if, in the opinion of that Finance Party (acting reasonably), to do so would be prejudicial to it.</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><a name="p39a"></a>17.</font></td>
    <td><font face="sans-serif" size="2"><b>COSTS AND EXPENSES</b></font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">17.1</font></td>
    <td><font face="sans-serif" size="2"><b>Transaction expenses</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly on demand pay the Agent and the Arranger the amount of all reasonable costs and expenses (including legal fees) reasonably incurred by any of them, (subject to a maximum in respect of legal fees as agreed between the Agent and the Original Borrower) in connection with the negotiation, preparation, printing, execution and syndication of this Agreement and any other documents referred to in this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">17.2</font></td>
    <td><font face="sans-serif" size="2"><b>Amendment costs</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If a Borrower requests an amendment, waiver or consent, the Original Borrower shall, within five Business Days of demand, reimburse the Agent for the amount of all reasonable costs and expenses (including legal fees) reasonably incurred by the Agent in evaluating, negotiating or complying with that&nbsp;request.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">17.3</font></td>
    <td><font face="sans-serif" size="2"><b>Enforcement costs</b></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall, within five Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">35</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p40"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SECTION 7<br>  REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT</b></font></p>
<p><font face="sans-serif" size="2">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>REPRESENTATIONS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Borrower represents and warrants to and for the benefit of each Finance Party as follows:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Status</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">It is a limited liability company duly incorporated and validly existing under the laws of England.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Powers</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">It has the power to enter into, exercise its rights and perform and comply with its obligations under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Consents</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">All action, conditions and things required by the laws of England to be taken, fulfilled and done (including the obtaining of any necessary Consents, the making of registrations and the like) in order:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">to enable it lawfully to enter into, exercise its rights and perform and comply with its obligations under the Finance Documents;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">to ensure that those obligations are valid, legally binding and enforceable;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">to ensure that those obligations rank and will at all times rank in accordance with Clause&nbsp;20.1&nbsp;(<i>Ranking of Obligations of each Borrower</i>); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">to make the Finance Documents admissible in evidence in the courts of England,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">have been taken, fulfilled and done.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Non-Violation
  etc.</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Its entry into, exercise of its rights and/or performance of or compliance with its obligations under the Finance Documents does not and will not violate, or exceed any borrowing or other power or restriction granted or imposed by:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">any law to which it is subject;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">its Memorandum or Articles of Association; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">(to an extent or in a manner which has a Material Adverse Effect) any agreement to which it is a party or which is binding on it or its assets,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">or result in the existence of, or oblige it to create, any Security over its assets.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Obligations Binding</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Its obligations under the Finance Documents from the time of its execution are legal, valid, binding and enforceable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No Default</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No Event of Default has occurred, or could reasonably be expected to occur as a result of making any Loan, other than any waived in accordance with Clause 33 (<i>Amendments and Waivers</i>). No member of the Group is in default under any agreement or instrument binding upon it to an extent or in a manner which has a Material Adverse Effect.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align=center><font face="sans-serif" size="2">36</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p41"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">18.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Existing Security</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No Security exists on or over the assets of any member of the Group except as permitted by Clause 20.2 (<i>Negative Pledge</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Accounts</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Its Original Financial Statements:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">include such financial statements as are required by the laws of England and accounting principles standards and practices generally accepted in England and, save as stated in the notes thereto, were prepared and audited in accordance with GAAP and consistently applied and in accordance with the Companies Act 1985; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">give a true and fair view of its consolidated state of affairs and profits as at that date and for the financial year then ended,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">and since 30 September 2002 there has been no material adverse change in the financial condition of the Group, excluding any change in connection with, or in anticipation of, the Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Litigation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">So far as it is aware having made reasonable enquiry, no litigation, arbitration or administrative proceeding is current, pending or threatened which has or, if adversely determined, would be reasonably likely to have a Material Adverse Effect.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No misleading information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any material written factual information provided by or on behalf of any member of the Group to the Arranger (i) prior to the date of this Agreement for the purposes of the Facility, being the Six Continents PLC information memorandum dated December 2002, other than in relation to sections 6.4 and 7.4 of that information memorandum in relation to which no representation is given, or (ii) after the date of this Agreement for the purposes of the Information Memorandum (if any), was true and accurate in all material respects, in each case, as at the date it was provided or as at the date at which it is stated.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Nothing has occurred or been omitted from the Information Memorandum and no information has been given or withheld that results in the information referred to in paragraph (a) above and provided to the Arranger for the purposes of the Facility or contained in the Information Memorandum being untrue or misleading in any material respect.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Repetition</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Repeating Representations will be made on each date on which a Loan is requested or to be made and on the first day of each Interest Period as if repeated then by reference to the then existing circumstances.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">18.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Qualifications to Warranties</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The representations and warranties in this Clause 18 shall (where applicable) be subject, as to matters of law only, to the qualifications and other matters set out in the legal opinions referred to in Schedule 2&nbsp;(<i>Conditions Precedent</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p41a"></a>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INFORMATION
  UNDERTAKINGS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">37</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p42"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">19.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Preparation of Accounts</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower will ensure that
      all accounts to be delivered by it under this Agreement (other than in respect
      of Clause 19.5 (<i>Semi-annual information</i>)) are prepared in such manner
      that Clause 18.8(a) and (b) (<i>Accounts</i>) would be complied with if
      applied to those accounts by Clause 18.11 (<i>Repetition</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Audited Accounts</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">As soon as available and in any event within 180 days after the end of each of its financial years (beginning with the current one), the Original Borrower will deliver to the Agent one copy for each Lender of its annual report and audited consolidated accounts as at the end of and for that financial year.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Compliance with Financial Ratios</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width=3%>&nbsp;</td>
    <td><font face="sans-serif" size="2">With each set of annual accounts delivered
      by it under Clause 19.2 (<i>Audited Accounts</i>) it will deliver to the
      Agent a certificate signed by a director or senior officer:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width=3%><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">confirming compliance with Clause 20.4
      (<i>Financial Ratios</i>) as at the end of the relevant period; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">setting out in reasonable detail the
      computations necessary to demonstrate such compliance.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Material Subsidiaries</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td><font face="sans-serif" size="2">With each set of annual accounts delivered
      by it under this Clause 19 (<i>Information</i>), the Original Borrower will
      deliver to the Agent a certificate:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">listing the Material Subsidiaries as
      at the end of the relevant financial year; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">setting out in reasonable detail the
      computations necessary to justify the inclusions in, and exclusions from,
      that list.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Semi-Annual
  Information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">As soon as available and in any event with 90 days after the end of the first 6 months of each of its financial years (beginning with the current one), the Original Borrower will deliver to the Agent one copy for each Lender of its unaudited consolidated accounts at the end of and for that 6 month period.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Information
  to shareholders or creditors</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">As soon as practicable following the time at which the same is sent to its shareholders (or any class of its shareholders) or to its creditors (or any class of its creditors) generally, the Original Borrower will deliver to the Agent enough copies for the Lenders of any circular, document or other written information sent to its shareholders (or any class of its shareholders) or creditors (or any class of its creditors) generally as such.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Events of Default</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each Borrower will notify the Agent of
      the occurrence of any Event of Default or Potential Event of Default (and
      of any action taken or proposed to be taken to remedy it) promptly after
      becoming aware of it.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Promptly after any request made by the
      Agent from time to time (acting reasonably), it will deliver to the Agent
      a certificate signed on its behalf by such person as may be acceptable to
      the Agent for that purpose confirming that, so far as it is aware and (if
      applicable) except as</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">38</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p43"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td><font face="sans-serif" size="2">previously notified to the Agent or waived
      in accordance with Clause 33 (<i>Amendments and Waivers</i>), no Event of
      Default or Potential Event of Default has occurred or (as the case may be)
      setting out details of any which has occurred and has not been so notified
      or waived and of which it is aware and of any action taken or proposed to
      be taken to remedy it.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other Information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly supply to the Agent such further information as the Agent may reasonably request and which is not commercially sensitive and which the Original Borrower is at liberty to disclose without breaching the rules or legal requirements of the UK Listing Authority, the Financial Services and Markets Act 2000 or other laws or any duty of confidentiality owed to a person other than a member of the Group.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Litigation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Promptly upon becoming aware of the same, the Original Borrower will promptly deliver to the Agent for distribution to the Lenders details of any litigation, arbitration or administrative proceeding which, if to its knowledge had been current, pending or threatened at the date of this Agreement, would have rendered the representation and warranty in Clause 18.9 (<i>Litigation</i>) incorrect.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Separation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly notify the Agent after it has decided that the Separation is not to, or shall not, proceed.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">19.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Use of websites</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the &#147;<b>Website Lenders</b>&#148;) who accept this method of communication by posting this information onto an electronic website designated by the Original Borrower and the Agent (the &#147;<b>Designated Website</b>&#148;) if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">both the Original Borrower and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the information is in a format previously agreed between the Original Borrower and the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If any Lender (a &#147;<b>Paper Form Lender</b>&#148;) does not agree to the delivery of information electronically then the Agent shall notify the Original Borrower accordingly and the Original Borrower shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form. In any event the Original Borrower shall supply the Agent with at least one copy in paper form of any information required to be provided by it.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Original Borrower and the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall promptly upon becoming aware of its occurrence notify the Agent if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Designated Website cannot be accessed due to technical failure;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the password specifications for the Designated Website change;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">39</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p44"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">any new information which is required to be provided under this Agreement is posted onto the Designated Website;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(v)</font></td>
    <td><font face="sans-serif" size="2">the Original Borrower becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If the Original Borrower notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Original Borrower under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. The Original Borrower shall comply with any such request within 10 Business Days.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p44a"></a>20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GENERAL
  UNDERTAKINGS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Ranking of Obligations of each Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The payment obligations of each Borrower
      under this Agreement rank and will at all times rank at least equally and
      rateably in all respects with all the other unsecured indebtedness of the
      Borrower except for such unsecured indebtedness as would, by virtue only
      of the operation of law, be preferred in the event of the Winding-up of
      that Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Negative Pledge</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td><font face="sans-serif" size="2">No Borrower will (and the Original Borrower
      shall ensure that none of its Subsidiaries will) create or have outstanding
      any Security on or over its assets, except for:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the Security created under the Trust
      Deed dated 25 April 1989 (as supplemented) between the Original Borrower,
      Bass Holdings Limited and The Law Debenture Trust Corporation p.l.c. securing
      &pound;250,000,000 103/8 per cent. Debenture Stock 2016 of the Original
      Borrower provided that the same is released by 31 May 2003;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">liens arising solely by operation of
      law in the ordinary course of its business in respect of indebtedness which
      either (a) has been due for less than 14 days or (b) is being contested
      in good faith and by appropriate means;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">pledges of goods, the related documents
      of title and/or other related documents arising or created in the ordinary
      course of its business as security only for indebtedness to a bank or financial
      institution directly relating to the goods or documents on or over which
      that pledge exists;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">except where the supplier is another
      member of the Group, Security arising out of title retention provisions
      in a supplier&#146;s standard conditions of supply of goods acquired by
      the relevant person in the ordinary course of its business;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">40</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p45"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">any Security created by a Subsidiary
      of the Original Borrower in favour of the Original Borrower;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">in the case of a Subsidiary which becomes
      a member of the Group after the date of this Agreement, any Security existing
      on or over its assets when it becomes a member of the Group and not created
      in contemplation of or in connection with it becoming a member of the Group
      (but, except with the prior consent of the Majority Lenders (i) the principal,
      capital or nominal amount secured by any such Security and outstanding when
      the relevant person becomes a member of the Group may not be increased except
      by reason of any fluctuation in the amount outstanding under, and within
      the limits and in accordance with the terms of, facilities which exist and
      are secured by the relevant Security when it becomes a member of the Group
      (or any renewal or extension of any such facility for the same or a smaller
      amount) and (ii) no indebtedness may be secured by any such Security which
      is not secured by the relevant Security when the relevant person becomes
      a member of the Group (apart from indebtedness resulting from any renewal
      or extension of any such facility for the same or a smaller amount));</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">any Security created on any asset acquired
      by it (otherwise than from another member of the Group) after the date of
      this Agreement for the sole purpose of financing or refinancing that acquisition
      and securing a principal, capital or nominal amount not exceeding 100 per
      cent. of the cost of that acquisition or any refinancing of that acquisition
      where the amount secured does not exceed the original amount secured;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">any Security on credit balances of any
      member of the Group with a bank or similar financial institution as security
      for back-to-back or similar finance or net overdraft facilities to be provided
      to that and/or any other member of the Group;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">any assignment by way of security in
      favour of any trade credit insurer of any of the book debts of any member
      of the Group which are insured by such trade credit insurer;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(j)</font></td>
    <td><font face="sans-serif" size="2">any Security securing Project Finance
      Indebtedness provided such security falls within paragraph (b) of the definition
      of Project Finance Indebtedness;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(k)</font></td>
    <td><font face="sans-serif" size="2">any other Security created or outstanding
      provided that the aggregate outstanding principal, capital or nominal amount
      secured by all Security created or outstanding under this exception must
      not at any time exceed an amount equal to 15 per cent. of Consolidated Gross
      Assets; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(l)</font></td>
    <td><font face="sans-serif" size="2">any other Security created or outstanding
      with the prior consent of the Majority Lenders.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Disposals</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td><font face="sans-serif" size="2">No Borrower will (and the Original Borrower
      shall ensure that none of its Subsidiaries will) either in a single transaction
      or in a series of transactions, whether related or not and whether voluntarily
      or involuntarily), sell, convey, transfer or otherwise dispose (each a &#147;<b>Disposal</b>&#148;)
      of the whole or any material part of its undertaking or assets, other than
      by way of Disposals:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">made in the ordinary course of business
      of the disposing entity;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">on an arm&#146;s length basis and on
      normal commercial terms of obsolete assets or assets no longer required
      for the purpose of the relevant company&#146;s business;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">41</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p46"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">by way of payment of cash as consideration
      for the acquisition of any asset on an arm&#146;s length basis and on normal
      commercial terms;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">of assets by one member of the Group
      to another where the Original Borrower&#146;s interest (whether direct or
      indirect) in the receiving Subsidiary is not materially less than its interest
      (whether direct or indirect) in the disposing Subsidiary;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">of assets for cash or other valuable
      consideration at open market value;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">of assets in exchange for other assets
      of comparable or superior type, value and quality;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">of any asset of any person becoming a
      member of the Group after the date of this Agreement, where such disposal
      is pursuant to or required by any agreement, arrangement or obligation in
      effect entered into or undertaken by that person before it became a member
      of the Group provided that such agreement, arrangement or obligation was
      not entered into, put into effect or undertaken in contemplation of or in
      connection with that person becoming a member of the Group;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(h)</font></td>
    <td><font face="sans-serif" size="2">made with the prior written consent of
      the Majority Lenders; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">in connection with or for the purpose
      of the Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%">&nbsp;</td>
    <td><font face="sans-serif" size="2">Neither a purchase or redemption by the
      Original Borrower of any of its shares nor any dividend or distribution
      made or paid by the Original Borrower to its shareholders shall be treated
      as a Disposal.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Financial Ratios</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall ensure that:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the ratio of Consolidated EBITDA to Net Interest Payable for each Ratio Period will not be less than 3.5:1;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the ratio of Total Consolidated Net Borrowings as at the last day of a Ratio Period to Consolidated EBITDA for that Ratio Period will not be more than 3.5:1, where Consolidated EBITDA for the purpose of this covenant shall be adjusted to take into account the pro forma impact of any acquisitions or disposals made during the Ratio Period by members of the Group; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">External Net Borrowings of Subsidiaries do not at any time exceed 10 per cent. of Consolidated Gross Assets.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Consolidated EBITDA, Net Interest Payable, Total Consolidated Net Borrowings, Total Consolidated Borrowings, Consolidated Gross Assets, External Net Borrowings of Subsidiaries shall be:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">extracted from the financial statements
      of the Group delivered pursuant to Clause 19.2 (<i>Audited Accounts</i>)
      and Clause 19.5 (<i>Semi-Annual Information</i>); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">calculated and interpreted in accordance with Applicable Accounting Principles (with such adjustments as specified in the definitions of those terms) and shall be expressed in sterling.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower shall procure that
      each set of financial statements of the Group delivered pursuant to Clause
      19.2 (<i>Audited Accounts</i>) and Clause 19.5 (<i>Semi-Annual Information</i>)
      is prepared using GAAP and it shall deliver to the Agent sufficient information,
      in form and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">42</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p47"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 20.4(a) has been complied with and including, where applicable for the purposes of such determination, an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">Any reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the Applicable Accounting Principles.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">If the Agent or any Lender disputes any interpretation of or computation for any part of this Clause 20.4, the interpretation or computation of the auditors to the Original Borrower shall prevail.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.5 <b>Consents</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Borrower shall promptly:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">obtain, maintain and comply with the terms of; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">supply certified copies to the Agent of,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">any Consent required by the laws of England to enable it to perform its obligations under, or for the validity or enforceability of, this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">20.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Dividends</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Until the Total Commitments are less than &pound;1,500,000,000, the Original Borrower or, following TopCo PLC becoming the Holding Company of the Original Borrower, TopCo PLC will not without the consent of the Lenders, declare or pay any dividend or distribution or return of capital to its public shareholders other than:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">interim and final dividends in the ordinary course of its business; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in a maximum aggregate amount of &pound;700,000,000 to be paid on or after the Separation Date or as contemplated in the Separation Steps Paper.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p47a"></a>21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EVENTS
  OF DEFAULT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The following are Events of Default:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Non-payment</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A Borrower does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable unless:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">its failure to pay is caused by administrative
      or technical error; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">payment is made within 5 Business Days
      of its due date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Breach of Representation or Warranty</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any representation, warranty or statement by a Borrower in this Agreement or in any document delivered under it is not complied with or is or proves to have been incorrect, in any material respect when made or deemed repeated and, if that default is capable of remedy, it is not remedied within 14 Business Days after notice of that default has been given to it by the Agent or (if earlier) the date on which the relevant Borrower became aware of that default.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Breach of Other Obligation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Borrower does not perform or comply with any one or more of its obligations under Clause 20.3 (<i>Disposals</i>) or 20.4 (<i>Financial Ratios</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">43</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p48"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A Borrower does not perform or comply with any one or more of its other obligations under this Agreement and, if that default is capable of remedy within 30 days, it is not remedied within 30 days after notice of that default has been given to it by the Agent or (if earlier) the date on which that Borrower became aware of that default.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cross Default</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any other indebtedness of a member of the Group for or in respect of Borrowed Money (other than indebtedness owing to another member of the Group) is due and payable before its normal maturity by reason of a default or is not paid when due nor within any applicable grace period in any agreement relating to that Borrowed Money.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Any creditor of any member of the Group becomes entitled to declare any indebtedness of a member of the Group for or in respect of Borrowed Money (other than indebtedness owing to another member of the Group) due and payable prior to its specified maturity as a result of a default (howsoever described).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">No Event of Default will occur under this Clause 21.4 unless and until the aggregate amount of the Borrowed Money (whether of one or more persons) in respect of which one or more of the events mentioned in this Clause 21.4 has/have occurred equals or exceeds &pound;25,000,000 or its equivalent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Insolvency</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A Borrower or any Material Subsidiary (i) is (or is deemed by law or a court to be) insolvent or unable to pay its debts, stops, suspends or threatens to stop or suspend payment of all or a material part of (or of a particular type of) its indebtedness, (ii) begins negotiations or takes any other step with a view to the deferral, rescheduling or other readjustment of all or a material part of (or all of a particular type of) its indebtedness (or of any part which it will be unable to pay when due), (iii) proposes or makes a general assignment or an arrangement or composition with or for the benefit of the relevant creditors.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A moratorium is agreed, declared or takes effect in respect of or affecting all or a material part of (or of a particular type of) the indebtedness of the relevant Borrower or any Material Subsidiary.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Enforcement Proceedings</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A distress, attachment, execution or other legal process is levied, enforced or sued out on or against all or a material part of the assets of a Borrower or any Material Subsidiary and is not discharged or permanently stayed within 28 days or is being contested in good faith and is fully provided.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Winding-up</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">An order is made or an effective resolution
      is passed for the Winding-up of a Borrower or any Material Subsidiary except
      for the purpose of, and followed by, a reconstruction, amalgamation, reorganisation,
      merger or consolidation of a Material Subsidiary on a solvent basis or on
      terms approved by the Majority Lenders before the order is made or resolution
      is passed.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A petition is presented for the Winding-up
      of a Borrower or any Material Subsidiary (except where the petition (not
      being a petition for administration under the laws of England) is being
      contested in good faith by appropriate proceedings by the company which
      is the subject of the petition and is withdrawn or discharged within 30
      days of presentation).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<p></p>
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<p><font face="sans-serif" size="2">21.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cessation of Business</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A Borrower or any Material Subsidiary ceases to carry on its business, except pursuant to a reconstruction, amalgamation, merger or consolidation of a Material Subsidiary on a solvent basis or on terms previously approved by the Majority Lenders or as a result of, in connection with, or for the purpose of the Separation.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Security Enforceable</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A receiver or similar officer is appointed over the whole or part of the assets (in the case of part being assets of not less than &pound;25,000,000 (or its equivalent) in value) of a Borrower or any Material Subsidiary; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">An encumbrancer takes possession of the whole or part of the assets of a Borrower or of a Material Subsidiary in each case in respect of an amount in excess of &pound;25,000,000 (in aggregate) (or its equivalent) and such possession is not released within 20 Business Days.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Illegality</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">It is or will become unlawful for a Borrower to perform or comply with any one or more of its material obligations under this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Analogous Events</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any event occurs which, under the law
      of any relevant jurisdiction, has an analogous or equivalent effect to any
      event mentioned in Clause 21.5 (<i>Insolvency</i>), 21.6 (<i>Enforcement
      Proceedings</i>) or 21.7 (<i>Winding-up</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Material Adverse Change</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any event or circumstance occurs which has a Material Adverse Effect; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Until the earlier of (i) the Separation Date and (ii) the date on which the Original Borrower notifies the Agent pursuant to Clause 19.10 (<i>Separation</i>), there is a major conflict or war which results in a material adverse change in the financial condition of a substantial part of the Group (where, for the purposes of this definition, &#147;a substantial part of the Group&#148; means a part of the Group:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">which generates at least 50 per cent. of Consolidated EBITDA (where Consolidated EBITDA is based on Consolidated EBITDA as calculated for the financial year of the Original Borrower immediately prior to the financial year in which such event occurs); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">which generates at least 50 per cent. of consolidated revenues (where consolidated revenues are based on those calculated for the financial year of the Original Borrower, immediately prior to the financial year in which such event occurs); or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">which constitutes at least 50 per cent. of Consolidated Gross Assets).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">21.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cancellation/Acceleration Proceedings</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If at any time and for any reason (and whether within or beyond the control of any party to this Agreement) any Event of Default has occurred then at any time thereafter, if that Event of Default is continuing, the Agent, if so instructed by the Majority Lenders, shall by notice to the Original Borrower declare:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the Commitments to be cancelled, whereupon
      they shall be cancelled; and/or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
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<p></p>
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<page>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">all Loans, all unpaid accrued interest
      and fees and any other sum then payable under this Agreement to be immediately
      due and payable, whereupon they shall become so due and payable; and/or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%">&nbsp;</td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">all Loans, all unpaid accrued interest
      and fees and any other sum then payable under this Agreement to be payable
      on demand, whereupon they shall become payable on demand by the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">46</font></p>
<p></p>
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<p align=center><font face="sans-serif" size="2"><b>SECTION 9<br>  CHANGES TO PARTIES</b></font></p>
<p><font face="sans-serif" size="2">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CHANGES TO THE LENDERS</b></font></p>
<p><font face="sans-serif" size="2">22.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Assignments and transfers by the Lenders</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Subject to this Clause 22, a Lender (the &#147;<b>Existing Lender</b>&#148;) may at any time after 31 May 2003 (or such other date as determined by the Arranger after consultation with the Original Borrower) or such earlier time as the Original Borrower notifies the Agent in writing that the Separation is not to, or shall not, proceed:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">assign any of its rights; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">transfer by novation any of its rights and obligations,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">to another bank or financial institution which is a Qualifying Lender or, following the occurrence of an Event of Default which is continuing, to another bank or financial institution or to a trust fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets which, in each case, is a Qualifying Lender (the &#147;<b>New Lender</b>&#148;).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Conditions of assignment or transfer</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Following the Syndication Date, the consent of the Original Borrower is required for an assignment or transfer by a Lender, unless the assignment or transfer is to another Lender or an Affiliate of a Lender or following the occurrence of an Event of Default, which is continuing.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The consent of the Original Borrower to an assignment or transfer must not be unreasonably withheld or delayed. The Original Borrower will be deemed to have given its consent 10 Business Days after the Lender has requested it unless consent is expressly refused by the Original Borrower within that time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">A partial transfer by a Lender shall be in a minimum amount of &pound;15,000,000.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">The consent of the Original Borrower to an assignment or transfer must not be withheld solely because the assignment or transfer may result in an increase to the Mandatory Cost.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">An assignment will only be effective on receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">A transfer will only be effective if the procedure set out in Clause 22.5 (<i>Procedure for transfer</i>) is complied with.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">If:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">as a result of circumstances existing at the date the assignment, transfer or change occurs, the Original Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 13 (<i>Tax gross-up and Indemnities</i>) or Clause 14 (<i>Increased Costs</i>),</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
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<p></p>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Assignment or transfer fee</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of &pound;1,000.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Limitation of responsibility of Existing Lenders</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the financial condition of any Borrower;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the performance and observance by any Borrower of its obligations under the Finance Documents or any other documents; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">and any representations or warranties implied by law are excluded.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each New Lender confirms to the Existing Lender and the other Finance Parties that it:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Borrower and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">will continue to make its own independent appraisal of the creditworthiness of each Borrower and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Nothing in any Finance Document obliges an Existing Lender to:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 22; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Borrower of its obligations under the Finance Documents or otherwise.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Procedure for transfer</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to the conditions set out in Clause 22.2 (<i>Conditions of assignment or transfer</i>) a transfer is effected in accordance with paragraph (b) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<p></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p53"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">On the Transfer Date:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Borrower and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the &#147;<b>Discharged Rights and Obligations</b>&#148;);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">each of the Borrower and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Borrower and the New Lender have assumed and/or acquired the same in place of that Borrower and the Existing Lender;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">the New Lender shall become a Party as a &#147;Lender&#148;.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Disclosure of information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any Lender may disclose on a need-to-know basis to any of its Affiliates and any other person:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">to (or through) whom that Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this Agreement for the purpose of that actual or potential assignment or transfer;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">with (or through) whom that Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, this Agreement or any Borrower for the purpose of that actual or potential sub-participation or transaction; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">any information about any Borrower, the Group and the Finance Documents as that Lender shall consider appropriate if, in relation to paragraphs (a) and (b) above, the person to whom the information is to be given has entered into a Confidentiality Undertaking. This Clause supersedes any previous agreement relating to the confidentiality of this information.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">22.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Confidentiality</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Finance Party undertakes with the Original Borrower:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">to keep confidential and not to disclose to anyone any information (including any projections) relating to the Group, any member of the Group or any Finance Document, in whatever form, and including information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information except:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">49</font></p>
<p></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p54"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">for any lawfully obtained from any other source, or that is or becomes public knowledge, other than as a direct or indirect result of any breach of any obligation of confidentiality; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">as permitted by Clause 22.6 (<i>Disclosure of information</i>) or by a Confidentiality Undertaking envisaged by that Clause;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">to ensure that such information is protected with security measures and a degree of care that would apply to that Finance Party&#146;s own confidential information;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">to use that information only for the purpose of, or as permitted by, the Finance Documents; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">to use all reasonable endeavours to ensure that any person to whom that Finance Party passes any such information (unless disclosed under paragraph (c) of Clause 22.6 (<i>Disclosure of information</i>) acknowledges and complies with the provisions of this Clause 22.7 as if that person were also bound by it.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p54a"></a>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CHANGES
  TO THE BORROWERS</b></font></p>
<p><font face="sans-serif" size="2">23.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Assignments and transfer by Borrowers</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No Borrower may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">23.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Additional Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Borrower may request that TopCo PLC becomes an Additional Borrower and it shall become an Additional Borrower if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC is at that time the Holding Company of the Original Borrower;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the Original Borrower delivers to the Agent a duly completed and executed Accession Letter; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (<i>Conditions Precedent</i>) in relation to that Additional Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall notify the Original Borrower and the Lenders promptly upon receipt of all the documents and other evidence listed in Part II of Schedule 2 (<i>Conditions Precedent</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">23.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Resignation of a Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If TopCo PLC accedes as an Additional Borrower to this Agreement, it may request that Six Continents PLC ceases to be a Borrower by delivering to the Agent a Resignation Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall accept a Resignation Letter and notify TopCo PLC and the Lenders of its acceptance if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">no Event of Default is continuing or would result from the acceptance of the Resignation Letter (and TopCo PLC has confirmed this is the case); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">Six Continents PLC is under no actual or contingent payment obligations as a Borrower under any Finance Documents,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">whereupon Six Continents PLC shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">50</font></p>
<p></p>
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<p><font face="sans-serif" size="2">23.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Repetition of Representations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Delivery of an Accession Letter constitutes confirmation by the Original Borrower that the Repeating Representations are true and correct in all material respects in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">51</font></p>
<p></p>
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<p align=center><font face="sans-serif" size="2"><b>SECTION 7<br>  THE FINANCE PARTIES</b></font></p>
<p><font face="sans-serif" size="2">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ROLE OF THE AGENT AND THE ARRANGER</b></font></p>
<p><font face="sans-serif" size="2">24.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Appointment of the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Each other Finance Party appoints the Agent to act as its agent under and in connection with the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each other Finance Party authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Duties of the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If the Agent receives notice from a Party referring to this Agreement, describing an Event of Default or Potential Event of Default and stating that the circumstance described is an Event of Default or a Potential Event of Default, it shall promptly notify the Finance Parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arranger) under this Agreement it shall promptly notify the other Finance Parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">The Agent&#146;s duties under the Finance Documents are solely mechanical and administrative in nature.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Role of the Arranger</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No fiduciary duties</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Nothing in this Agreement constitutes the Agent or the Arranger as a trustee or fiduciary of any other person.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Business with the Group</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Rights and discretions of the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Agent may rely on:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">52</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p57"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">no Event of Default or Potential Event
      of Default has occurred (unless it has actual knowledge of an Event of Default
      or a Potential Event of Default arising under Clause 21.1 (<i>Non-payment</i>));
      and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">The Agent may act in relation to the Finance Documents through its personnel and agents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Majority Lenders&#146; instructions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders), the Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender&#146;s consent) in any legal or arbitration proceedings relating to any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">53</font></p>
<p></p>
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<page>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">24.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Responsibility for documentation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Neither the Agent nor the Arranger:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, any of the Borrowers or any other person given in or in connection with any Finance Document or the Information Memorandum; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exclusion of liability</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Without limiting paragraph (b) below, the Agent will not be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Lenders&#146; indemnity to the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent&#146;s gross negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by a Borrower pursuant to a Finance Document).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Resignation of the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the other Finance Parties and the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Alternatively the Agent may resign by giving at least 7 days notice to the other Finance Parties and the Original Borrower, in which case the Majority Lenders (after consultation with the Original Borrower) may appoint a successor Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Agent (after consultation with the Original Borrower) may appoint a successor Agent (acting through an office in the United Kingdom).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">54</font></p>
<p></p>
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<div style="page-break-before:always"></div>
<page>
<a name="p59"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">The Agent&#146;s resignation notice shall only take effect upon the appointment of a successor.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(f)</font></td>
    <td><font face="sans-serif" size="2">Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 24. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(g)</font></td>
    <td><font face="sans-serif" size="2">After consultation with the Original Borrower, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent shall resign in accordance with paragraph (b) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Confidentiality</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Relationship with the Lenders</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Each Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (<i>Mandatory Cost formulae</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Credit appraisal by the Lenders</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Without affecting the responsibility of any Borrower for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the financial condition, status and nature of each member of the Group;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">the adequacy, accuracy and/or completeness of the Information Memorandum and any information provided by the Agent, any Party or by any other person under or in</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<p></p>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Reference Banks</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in agreement with the Original Borrower, such agreement not to be unreasonably withheld) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">24.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Deduction from amounts payable by the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p60a"></a>25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CONDUCT
  OF BUSINESS BY THE FINANCE PARTIES</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No provision of this Agreement will:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p60b"></a>26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SHARING
  AMONG THE FINANCE PARTIES</b></font></p>
<p><font face="sans-serif" size="2">26.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Payments to Finance Parties</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If a Finance Party (a &#147;<b>Recovering Finance Party</b>&#148;) receives or recovers any amount from a Borrower other than in accordance with Clause 27 (<i>Payment mechanics</i>) and applies that amount to a payment due under the Finance Documents then:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 27 (<i>Payment</i> <i>mechanics</i>), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the &#147;<b>Sharing Payment</b>&#148;) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 27.5 (<i>Partial payments</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<p><font face="sans-serif" size="2">26.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Redistribution of payments</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Agent shall treat the Sharing Payment as if it had been paid by the relevant Borrower and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 25.5 (<i>Partial payments</i>).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">26.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Recovering Finance Party&#146;s rights</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">On a distribution by the Agent under Clause 26.2 (<i>Redistribution of payments</i>), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Borrower shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">26.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Reversal of redistribution</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 26.2 (<i>Redistribution of payments</i>) shall, upon request of the Agent, pay to the Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">that Recovering Finance Party&#146;s rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Borrower will be liable to the reimbursing Finance Party for the amount so reimbursed.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">26.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exceptions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">This Clause 26 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">it notified that other Finance Party of the legal or arbitration proceedings; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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<p align=center><font face="sans-serif" size="2"><b>SECTION 8<br>  ADMINISTRATION</b></font></p>
<p><font face="sans-serif" size="2">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PAYMENT MECHANICS</b></font></p>
<p><font face="sans-serif" size="2">27.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Payments to the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">On each date on which a Borrower or a Lender is required to make a payment under a Finance Document, that Borrower or that Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre in a Participating Member State or London) with such bank as the Agent specifies.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Distributions by the Agent</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 27.3 (<i>Distributions to the Borrower</i>) and Clause 27.4 (<i>Clawback</i>), be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days&#146; notice with a bank in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Distributions to the Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Agent may (with the Borrower&#146;s consent or in accordance with Clause 28 (<i>Set-off</i>)) apply any amount received by it for that Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Clawback</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Partial payments</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by a Borrower under the Finance Documents, the Agent shall apply that payment towards the obligations of that Borrower under the Finance Documents in the following order:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2"><b>first</b>, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent or the Arranger under the Finance Documents;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2"><b>secondly</b>, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2"><b>thirdly</b>, in or towards payment pro rata of any principal due but unpaid under this Agreement; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2"><b>fourthly</b>, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Paragraphs (a) and (b) above will override any appropriation made by a Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No set-off by a Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">All payments to be made by a Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Business Days</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Currency of account</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and payment for any sum due from a Borrower under any Finance Document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its due date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">27.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Change of currency</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (acting reasonably and after consultation with the Original Borrower); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">59</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p64"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably and after consultation with the Original Borrower).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Original Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p64a"></a>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SET-OFF</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">After the occurrence of an Event of Default which is continuing, a Finance Party may set off any matured obligation due from a Borrower under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Borrower, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. That Finance Party shall promptly notify that Borrower of any such set-off or conversion.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p64b"></a>29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>NOTICES</b></font></p>
<p><font face="sans-serif" size="2">29.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Communications in writing</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">29.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Addresses</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in the case of the Original Borrower, that identified with its name below;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in the case of each Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">in the case of the Agent, that identified with its name below,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days&#146; notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">29.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Delivery</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">if by way of fax, when received in legible form; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">and, if a particular department or officer is specified as part of its address details provided under Clause 29.2 (<i>Addresses</i>), if addressed to that department or officer.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">60</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p65"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent&#146;s signature below (or any substitute department or officer as the Agent shall specify for this purpose).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">All notices from or to the Original Borrower shall be sent through the Agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">29.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Notification of address and fax number</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 29.2 (<i>Addresses</i>) or changing its own address or fax number, the Agent shall notify the other Parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">29.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Electronic communication</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">All communication to be made between the Agent and a Lender or a Borrower and the Agent under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent and the relevant Lender or, as appropriate, the relevant Borrower and the Agent:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">agree that, unless and until notified to the contrary, this is to be an accepted form of communication;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">notify each other of any change to their address or any other such information supplied by them.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Any electronic communication made between the Agent and a Lender or a Borrower and the Agent will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Agent or a Borrower to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The ability of a Borrower to use electronic communications is without prejudice to its obligation to submit any Utilisation Request, Selection Notice, Accession Letter, Resignation Letter or Term Out Notice in the form required under this Agreement or any other document or notice which requires the signature of any director or authorised signatory of a Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">29.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>English language</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Any notice given under or in connection
      with any Finance Document must be in English. </font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">(b) </font></td>
    <td><font face="sans-serif" size="2">All other documents provided under or
      in connection with any Finance Document must be:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">in English; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><a name="p65a"></a>30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CALCULATIONS
  AND CERTIFICATES</b></font></p>
<p><font face="sans-serif" size="2">30.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Accounts</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">61</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p66"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">30.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Certificates and Determinations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any certification or determination by a Finance Party of a rate or amount under any Finance Document shall set out the basis of calculation in reasonable detail and is prima facie evidence of the matters to which it relates.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2">30.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Day count convention</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days in the case of sterling, 360 days in the case of euro or US Dollars or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.</font></td>
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<p><font face="sans-serif" size="2"><a name="p66a"></a>31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PARTIAL
  INVALIDITY</b></font></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2"><a name="p66b"></a>32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>REMEDIES
  AND WAIVERS</b></font></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2"><a name="p66c"></a>33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>AMENDMENTS
  AND WAIVERS</b></font></p>
<p><font face="sans-serif" size="2">33.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Required consents</b></font></p>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 33.2 (<i>Exceptions</i>) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Original Borrower and any such amendment or waiver will be binding on all Parties.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2">33.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exceptions</b></font></p>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">An amendment or waiver that has the effect of changing or which relates to:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the definition of &#147;EURIBOR&#148;, &#147;LIBOR&#148; or &#147;Majority Lenders&#148; in Clause 1.1 (<i>Definitions</i>);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">an extension to the date of payment of any amount under the Finance Documents;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iv)</font></td>
    <td><font face="sans-serif" size="2">an increase in or an extension of any Commitment;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(v)</font></td>
    <td><font face="sans-serif" size="2">a change to the Borrowers other than in accordance with Clause 23 (<i>Changes to the Borrowers</i>);</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(vi)</font></td>
    <td><font face="sans-serif" size="2">any provision which expressly requires the consent of all the Lenders; or</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(vii)</font></td>
    <td><font face="sans-serif" size="2">Clause 2.2 (<i>Finance Parties&#146; rights and obligations</i>), Clause 22 (<i>Changes to the Lenders</i>), Clause 26 (<i>Sharing among the Finance Parties</i>) or this Clause 33,</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">62</font></p>
<p></p>
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<page>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">shall not be made without the prior consent of all the Lenders.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">An amendment or waiver which relates to the rights or obligations of the Agent or the Arranger may not be effected without the consent of the Agent or the Arranger.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2"><a name="p67a"></a>34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COUNTERPARTS</b></font></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p><font face="sans-serif" size="2"><a name="p67b"></a>35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CONSEQUENCES
  OF STEPS TO SEPARATION AND NO SEPARATION</b></font></p>
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  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Finance Parties acknowledge and consent to the Separation.</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The Parties confirm and agree that with effect from the time that TopCo PLC becomes the Holding Company of the Original Borrower in connection with the Separation (the &#147;<b>New Parent Step</b>&#148;):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">references in this Agreement to (A) &#147;Group&#148; shall, to the extent appropriate, mean TopCo PLC and its Subsidiaries from time to time and (B) &#147;Original Borrower&#148; shall, where appropriate, be substituted for references to TopCo PLC; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">if the Separation Date has not occurred within 5 Business Days of the New Parent Step (or such later time as the Finance Parties may agree), the Finance Parties and TopCo PLC shall negotiate (in good faith) and document appropriate amendments to this Agreement (such documentation to be completed by no later than 20 Business Days following commencement of such negotiations),</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">in each case, to take account of TopCo PLC&#146;s position in the corporate structure of the Group at that time and the obligations which it shall be undertaking, or required to undertake, as a consequence of that position and on the basis that the Parties shall be put in no better and no worse commercial position by those changes and amendments.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
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<p></p>
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<page>
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<p align=center><font face="sans-serif" size="2"><b>SECTION 9<br>  GOVERNING LAW</b></font></p>
<p><font face="sans-serif" size="2">36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GOVERNING LAW</b></font></p>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">This Agreement is governed by English law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2"><b>This Agreement has been entered into on the date stated at the beginning of this Agreement.</b></font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">64</font></p>
<p></p>
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<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 1<br>  THE ORIGINAL LENDERS</b></font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td width="65%"><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="1"><b>Name of Original Lender</b></font></div></td>
    <td width="17%" align=right valign=bottom><font face="sans-serif" size="1">&nbsp;</font></td>
    <td width="16%" align=right valign=bottom><font face="sans-serif" size="1"><b>Commitment</b></font></td>
    <td width="2%"><font face="sans-serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Barclays Bank PLC</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;600,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Citibank, N.A.</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;600,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">HSBC Bank plc</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;600,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">JPMorgan Chase Bank</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;600,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">The Royal Bank of Scotland plc</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;600,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#ffffff">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1"></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&pound;3,000,000,000</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
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<p></p>
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<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 2</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>CONDITIONS PRECEDENT</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>PART I</b></font></p>
<p><font face="sans-serif" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The Original Borrower</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">A copy of the constitutional documents of the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A copy of a resolution of the committee of the board of directors of the Original Borrower (together with a copy of the resolution appointing such committee):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">approving the terms of, and the transactions contemplated by, the Finance Documents and resolving that it execute the Finance Documents;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii) </font></td>
    <td><font face="sans-serif" size="2">authorising a specified person or persons to execute the Finance Documents on its behalf; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii) </font></td>
    <td><font face="sans-serif" size="2">authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request and Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">A certificate of the Original Borrower (signed by a director) confirming that borrowing the Total Commitments would not cause any borrowing or similar limit binding on the Original Borrower to be exceeded.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(e)</font></td>
    <td><font face="sans-serif" size="2">A certificate of the Original Borrower (signed by an authorised signatory) certifying that each copy document relating to it specified in this Schedule 2 Part I is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Legal opinions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">A legal opinion of Clifford Chance, Limited Liability Partnership legal advisers to the Arranger and the Agent in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other documents and evidence</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Original Financial Statements.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">A cancellation and prepayment notice in respect of the Existing Facility so that it will be cancelled on the date of this Agreement and prepaid in full by way of the first Utilisation under the Facility.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">66</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p71"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>PART II</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>CONDITIONS PRECEDENT REQUIRED TO BE</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>DELIVERED BY THE ADDITIONAL BORROWER</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">An Accession Letter, duly executed by the Additional Borrower and the Original Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">A copy of the constitutional documents of the Additional Borrower.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">A copy of a resolution of the board of directors of the Additional Borrower:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">authorising a specified person or persons to execute the Accession Letter on its behalf; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to the Additional Borrower, any Utilisation Request or Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">5.</font></td>
    <td><font face="sans-serif" size="2">A certificate of the Additional Borrower (signed by a director) confirming that borrowing the Total Commitments would not cause any borrowing or similar limit binding on it to be exceeded.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">6.</font></td>
    <td><font face="sans-serif" size="2">A certificate of an authorised signatory of the Additional Borrower certifying that each copy document listed in this Part II of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">7.</font></td>
    <td><font face="sans-serif" size="2">A legal opinion of Clifford Chance, Limited Liability Partnership legal advisers to the Arranger and the Agent in England.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">67</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p72"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 3<br><br>
REQUESTS<br><br>
PART I<br><br>
UTILISATION REQUEST</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="7%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">From:</font></td>
    <td width="93%"><font face="sans-serif" size="2">[Borrower]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="7%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">To:</font></td>
    <td width="93%"><font face="sans-serif" size="2"> [Agent]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="7%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">Dated:</font></td>
    <td width="93%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="7%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">Dear
      Sirs</font></td>
    <td width="93%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150; &pound;3,000,000,000 Facility Agreement<br>  dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">We wish to borrow a Loan on the following terms:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Proposed Utilisation Date: [_______] (or, if that is not a Business Day, the next Business Day)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Currency of Loan: [________]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Amount: [_______] or, if less, the Available Facility</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Interest Period: [_______]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">We confirm that each condition specified in Clause 4.2 (<i>Further conditions precedent</i>) is satisfied on the date of this Utilisation Request.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">The proceeds of this Loan should be credited to [account].</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">5.</font></td>
    <td><font face="sans-serif" size="2">This Utilisation Request is irrevocable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="sans-serif" size="2">Yours faithfully</font></p>
<p align=center><font face="sans-serif" size="2">............................................</font></p>
<p align=center><font face="sans-serif" size="2">authorised signatory for</font></p>
<p align="center"><font face="sans-serif" size="2">[<i>name of relevant Borrower</i>]</font></p>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">68</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p73"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>PART II</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>SELECTION NOTICE</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="6%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">From:</font></td>
    <td width="94%"><font face="sans-serif" size="2">[Borrower]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="6%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">To:</font></td>
    <td width="94%"><font face="sans-serif" size="2">[Agent]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="6%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">Dated:</font></td>
    <td width="94%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="9%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">Dear
      Sirs</font></td>
    <td width="91%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150;
  &pound;3,000,000,000 Facility Agreement<br>
    dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is a Selection Notice. Terms defined in the Agreement have the same meaning in this Selection Notice unless given a different meaning in this Selection Notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">We refer to the following Term Loan[s]
      in [identify currency] with an Interest Period ending on [_________].<sup>1</sup></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">

  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">[We request that the above Term Loan[s] be divided into [_________] Term Loans with the following Base Currency Amounts and Interest Periods:]<sup>2</sup></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">[We request that the next Interest Period for the above Term Loan[s] is [__________]]<sup>3</sup></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">We request that the above Term Loan[s] [is]/[are] [[_________]. As this results in a change of currency we confirm that each condition specified in Clause 4.2 (<i>Further conditions precedent</i>) is satisfied on the date of this Selection Notice. The proceeds of any change in currency should be credited to [account]].</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">5.</font></td>
    <td><font face="sans-serif" size="2">This Selection Notice is irrevocable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="sans-serif" size="2">Yours faithfully</font></p>
<p align=center><font face="sans-serif" size="2">............................................</font></p>
<p align=center><font face="sans-serif" size="2">authorised signatory for</font></p>
<p align="center"><font face="sans-serif" size="2">[<i>name of Borrower</i>]</font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><hr align="left" width="100" size="1" noshade>
</td>
  </tr>
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="1"><sup>1</sup></font></td>
    <td><font face="sans-serif" size="1">Insert details of all Term Loans/Facility
      B Loans in the same currency which have an Interest Period ending on the
      same date.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="1"><sup>2</sup></font></td>
    <td><font face="sans-serif" size="1">Use this option if division of Loans
      is requested.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="1"><sup>3</sup></font></td>
    <td><font face="sans-serif" size="1">Use this option if sub-division is not
      required.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">69</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p74"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 4</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>MANDATORY COST FORMULAE</b></font></p>
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    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank.</font></td>
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    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate, as a percentage rate, a rate (the &#147;<b>Additional Cost Rate</b>&#148;) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Agent as a weighted average of the Lenders&#146; Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.</font></td>
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    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent. This percentage will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender&#146;s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Agent as follows:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">in relation to a sterling Loan:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <p><font face="sans-serif" size="2"> </font>
    <td width="13%"><div align="center"><font face="sans-serif" size="2"><u>AB+C(B&#150;D)+Ex0.01</u></font>
        <font face="sans-serif" size="2"><br>
        100&#150;(A+C)</font></div>
      <div align="center"></div></td>
    <td valign="middle"><font face="sans-serif" size="2"><font face="sans-serif" size="2">per
      cent. per annum</font></font> </td>
    <p><font face="sans-serif" size="2"> </font> </tr>
</table>
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    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">in relation to a Loan in any currency
      other than sterling:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <p><font face="sans-serif" size="2"> </font>
    <td width="13%"><font face="sans-serif" size="2">
      <div align="center"><u>Ex0.01</u></div>
      </font> <div align="center"><font face="sans-serif" size="2"></font></div></td>
    <td rowspan="2" valign="middle"><font face="sans-serif" size="2"><font face="sans-serif" size="2">per
      cent. per annum</font></font></td>
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    <td>&nbsp;</td>
    <td align="center"> <font face="sans-serif" size="2">300</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Where:</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">A</font></td>
    <td><font face="sans-serif" size="2">is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">B </font></td>
    <td><font face="sans-serif" size="2">is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in paragraph (a) of Clause 9.3 (<i>Default interest</i>)) payable for the relevant Interest Period on the Loan.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">C</font></td>
    <td><font face="sans-serif" size="2">is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">D</font></td>
    <td><font face="sans-serif" size="2">is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">E</font></td>
    <td><font face="sans-serif" size="2">is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Agent as being the average of the most recent rates of charge</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">70</font></p>
<p></p>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and expressed in pounds per &pound;1,000,000.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">5.</font></td>
    <td><font face="sans-serif" size="2">For the purposes of this Schedule:</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">&#145;<b>&#145;Eligible Liabilities</b>&#148; and &#147;<b>Special Deposits</b>&#148; have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Fees Rules</b>&#148; means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Fee Tariffs</b>&#148; means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(d)</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Tariff Base</b>&#148; has the meaning given to it in, and will be calculated in accordance with, the Fees Rules.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">6.</font></td>
    <td><font face="sans-serif" size="2">In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">7.</font></td>
    <td><font face="sans-serif" size="2">If requested by the Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per &pound;1,000,000 of the Tariff Base of that Reference Bank.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width=3%>&nbsp;</td>
    <td>&nbsp;</td>
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    <td><font face="sans-serif" size="2">8.</font></td>
    <td><font face="sans-serif" size="2">Each Lender shall supply any information
      required by the Agent for the purpose of calculating its Additional Cost
      Rate. In particular, but without limitation, each Lender shall supply the
      following information on or prior to the date on which it becomes a Lender:</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2"> the jurisdiction of its Facility Office; and</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">any other information that the Agent may reasonably require for such purpose.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Each Lender shall promptly notify the Agent of any change to the information provided by it pursuant to this paragraph.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">9.</font></td>
    <td><font face="sans-serif" size="2">The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender&#146;s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">10.</font></td>
    <td><font face="sans-serif" size="2">The Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the</font></td>
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<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">71</font></p>
<p></p>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
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    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">11.</font></td>
    <td><font face="sans-serif" size="2">The Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">12</font></td>
    <td><font face="sans-serif" size="2">Any determination by the Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">13.</font></td>
    <td><font face="sans-serif" size="2">The Agent may from time to time, after consultation with the Original Borrower and the Lenders, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">72</font></p>
<p></p>
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<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 5<br><br>
FORM OF TRANSFER CERTIFICATE</b></font></p>
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  <tr valign=top>
    <td width="5%"><font face="sans-serif" size="2">To:</font></td>
    <td><font size="2">&nbsp;</font><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]
      as Agent</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="5%"><font face="sans-serif" size="2">From:</font></td>
    <td><font face="sans-serif" size="2">[The Existing Lender] (the &#147;<b>Existing Lender</b>&#148;) and [The New Lender] (the &#147;<b>New Lender</b>&#148;)</font></td>
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    <td><font size="2">&nbsp;</font></td>
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<p><font face="sans-serif" size="2">Dated:</font></p>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150; &pound;3,000,000,000 Facility Agreement<br>  dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
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    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">We refer to Clause 22.5 (<i>Procedure for transfer</i>):</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender&#146;s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 22.5 (<i>Procedure for transfer</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">The proposed Transfer Date is [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>].</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td width="3%"><font face="sans-serif" size="2">(c)</font></td>
    <td><font face="sans-serif" size="2">The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 29.2 (<i>Addresses</i>) are set out in the Schedule.</font></td>
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    <td><font size="2">&nbsp;</font></td>
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</table>
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    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">The New Lender expressly acknowledges the limitations on the Existing Lender&#146;s obligations set out in paragraph (c) of Clause 22.4 (<i>Limitation of responsibility of Existing Lenders</i>).</font></td>
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    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">The New Lender represents that it is a Qualifying Lender.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">[5.]</font></td>
    <td><font face="sans-serif" size="2">[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">a company resident in the United Kingdom, or a partnership each member of which is a company resident in the United Kingdom, for United Kingdom tax purposes; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and interest payable in respect of an advance under a Finance Document falls to be brought into account in computing the chargeable profits of that company for the purposes of section 11(2) of the Taxes Act.]<sup>1</sup></font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">[5/6]</font></td>
    <td><font face="sans-serif" size="2">This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">[6/7]</font></td>
    <td><font face="sans-serif" size="2">This Transfer Certificate is governed by English law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><sup>1</sup></font></td>
    <td><font face="sans-serif" size="2">Include if New Lender comes within paragraph (ii) of the definition of Qualifying Lender in Clause 13.1 (<i>Definitions</i>)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">73</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p78"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>THE SCHEDULE</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>Commitment/rights and obligations to be transferred</b></font></p>
<p align=center><font face="sans-serif" size="2">[insert relevant details]</font></p>
<p><font face="sans-serif" size="2">[Facility Office address, fax number and attention details for notices and account details for payments.]</font></p>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">[Existing Lender]</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="sans-serif" size="2">[New Lender]</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">By:</font></div></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as</font></p>
<p><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>].</font></p>
<p><font face="sans-serif" size="2">[Agent]</font></p>
<p><font face="sans-serif" size="2">By:</font></p>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">74</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p79"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 6<br><br>
TIMETABLES</b></font></p>
<p><font face="sans-serif" size="2">&#147;D &#150; &nbsp;&nbsp;&nbsp;&#148; refers to the number of Business Days before the relevant Utilisation Date/the first day of the relevant Interest Period.</font></p>
<p></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2"><b>Loans in</b></font></td>
  </tr>
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2"><b>Loans in</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>Loans in</b></font></td>
    <td align=center><font face="sans-serif" size="2"><b>other</b></font></td>
  </tr>
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2"><b>Loans in euro</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>sterling</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>US Dollars</b></font></td>
    <td align=center><font face="sans-serif" size="2"><b>currencies</b></font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Request
        for approval as an Optional Currency, if required (Clause 4.3 <i>(Conditions
        relating to Optional Currencies))</i></font></div></td>
    <td width="10%" align=center><font face="sans-serif" size="2">&#150;</font></td>
    <td width="10%" align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td width="10%" align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td width="10%" align=center><font face="sans-serif" size="2">D&#150;5<br>
      10:30 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        notifies the Lenders of the request (Clause 4.3 <i>(Conditions relating
        to Optional Currencies</i>))</font></div></td>
    <td align=center><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align=center><font face="sans-serif" size="2">D&#150;5<br>
      3:00 p.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Responses
        by Lenders to the request (Clause 4.3 <i>(Conditions relating to Optional
        Currencies</i>))</font></div></td>
    <td align=center><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align=center><font face="sans-serif" size="2">D&#150;4<br>
      1:00 p.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        notifies the Company if a currency is approved as an Optional Currency
        in accordance with Clause 4.3 (<i>Conditions relating to Optional Currencies</i>)</font></div></td>
    <td align=center><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align=center><font face="sans-serif" size="2">D&#150;4<br>
      5:00 p.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Delivery
        of a duly completed Utilisation Request (Clause 5.1 (<i>Delivery of a
        Utilisation Request</i>)) or a Selection Notice (Clause 10.1 (<i>Selection
        of Interest Periods</i>))</font></div></td>
    <td align=center><font face="sans-serif" size="2">D &#150; 3<br>
      10:30 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 1<br>
      10:30 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 3<br>
      10:30 a.m.</font></td>
    <td align=center><font face="sans-serif" size="2">D &#150; 3<br>
      10:30 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        determines (in relation to a Utilisation) the Base Currency </font><font face="sans-serif" size="2">Amount
        of the Loan, if required under Clause 5.4 <i>(Lenders&#146; participation)</i>
        and notifies the Lenders of the Loan in accordance with Clause 5.4<i>
        (Lenders&#146; participation)</i></font></div></td>
    <td align=center><font face="sans-serif" size="2">D &#150; 3<br>
      </font><font face="sans-serif" size="2">11:00 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 1<br>
      </font><font face="sans-serif" size="2">11:00 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 3<br>
      </font><font face="sans-serif" size="2">11:00 a.m.</font></td>
    <td align=center><font face="sans-serif" size="2">D &#150; 3</font><font face="sans-serif" size="2"><br>
      11:00 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        receives a notification from a Lender under Clause 6.2 </font><font face="sans-serif" size="2">(<i>Unavailability
        of a currency</i>)</font></div></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day<br>
      </font><font face="sans-serif" size="2">3:00 p.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">Quotation Day</font><font face="sans-serif" size="2"><br>
      3:00 p.m.</font></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day<br>
      </font><font face="sans-serif" size="2">3:00 p.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        gives notice in accordance with Clause 6.2 (<i>Unavailability of </i></font><font face="sans-serif" size="2"><i>a
        currency</i>)</font></div></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day</font><font face="sans-serif" size="2"><br>
      5:00 p.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">Quotation Day</font><font face="sans-serif" size="2"><br>
      5:00 p.m.</font></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day<br>
      </font><font face="sans-serif" size="2">5:00 p.m.</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">75</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p80"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2"><b>Loans in</b></font></td>
  </tr>
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="sans-serif" size="2"><b>Loans in</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>Loans in</b></font></td>
    <td align=center><font face="sans-serif" size="2"><b>other</b></font></td>
  </tr>
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td align=center><font face="sans-serif" size="2"><b>Loans in euro</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>sterling</b></font></td>
    <td align="center"><font face="sans-serif" size="2"><b>US Dollars</b></font></td>
    <td align=center><font face="sans-serif" size="2"><b>currencies</b></font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        determines amount of the Term Loan in Optional Currency<br>
        in accordance with Clause 6.3<i> (Change of currency)</i></font></div></td>
    <td width="10%" align=center><font face="sans-serif" size="2">D&#150;3<br>
       11:00 a.m.</font></td>
    <td width="10%" align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td width="10%" align="center"><font face="sans-serif" size="2">D &#150; 3<br>
       11:00 a.m.</font></td>
    <td width="10%" align=center><font face="sans-serif" size="2">D&#150;3<br>
      11:00 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        determines amount of the Term Loan in Optional Currency<br>
        in accordance with Clause 6.4(a)<i> (Same Optional Currency during successive
        Interest Periods</i>)</font></div></td>
    <td align=center><font face="sans-serif" size="2">D&#150;3<br>
       11:00 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 3<br>
       11:00 a.m.</font></td>
    <td align=center><font face="sans-serif" size="2">D&#150;3<br>
       11:00 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">Agent
        determines amount of Term Loan in Optional Currency converted into Base
        Currency in<br>
        accordance with Clause 6.4 (b)<i> (Same Optional Currency during successive
        Interest Periods</i>)</font></div></td>
    <td align=center><font face="sans-serif" size="2">D&#150;3<br>
       11:00 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">&#150;</font></td>
    <td align="center"><font face="sans-serif" size="2">D &#150; 3<br>
       11:00 a.m.</font></td>
    <td align=center><font face="sans-serif" size="2">D&#150;3<br>
       11:00 a.m.</font></td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td>
      <div style="margin-left:3%; text-indent:-3%"><font face="sans-serif" size="2">LIBOR
        or EURIBOR is fixed</font></div></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day<br>
       as of<br> 11:00 a.m.<br> (Brussels<br> time)</font></td>
    <td align="center"><font face="sans-serif" size="2">Quotation Day<br>
       as of<br> 11:00 a.m.</font></td>
    <td align="center"><font face="sans-serif" size="2">Quotation Day<br>
       as of<br> 11:00 a.m.</font></td>
    <td align=center><font face="sans-serif" size="2">Quotation Day<br>
       as of<br> 11:00 a.m.</font></td>
  </tr>
</table>
<p></p>
<p align=center>&nbsp;</p>
<hr noshade align="center" width="100%" size="1">
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">76</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p81"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 7<br>  FORM OF TERM OUT NOTICE</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font face="sans-serif" size="2">From:</font></td>
    <td width="4%">&nbsp;</td>
    <td><font face="sans-serif" size="2">Six Continents PLC</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font face="sans-serif" size="2">To:</font></td>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">[Agent]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">Dated:</font></p>
<p><font face="sans-serif" size="2">Dear Sirs</font></p>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150; &pound;3,000,000,000 Facility Agreement<br>  dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is a Term Out Notice. Terms defined in the Agreement have the same meaning in this Term Out Notice unless given a different meaning in this Term Out Notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">We elect to exercise the Term Out Option pursuant to Clause 7.2 (<i>Term Out Option</i>) of the Agreement in relation to [all Loans/the following Loans[s]:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="16%"><font face="sans-serif" size="2">Amount:</font></td>
    <td width="81%"><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="16%"><font face="sans-serif" size="2">Currency:</font></td>
    <td width="81%"><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="16%"><font face="sans-serif" size="2">Term Out Date:</font></td>
    <td width="81%"><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="16%"><font face="sans-serif" size="2">Interest Period:</font></td>
    <td width="81%"><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">This Term Out Notice is irrevocable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center><font face="sans-serif" size="2">Yours faithfully</font></p>
<p align=center><font face="sans-serif" size="2">..............................................</font></p>
<p align=center><font face="sans-serif" size="2">authorised signatory for</font></p>
<p align=center><font face="sans-serif" size="2">Six Continents PLC</font></p>
<p></p>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">77</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p82"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 8<br>  LMA FORM OF CONFIDENTIALITY UNDERTAKING</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>LMA CONFIDENTIALITY LETTER (SELLER)<br>  [Letterhead of Seller/Seller&#146;s agent/broker]</b></font></p>
<p><font face="sans-serif" size="2">To:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="37%"> <hr size="1" noshade></td>
    <td width="2%">&nbsp;</td>
    <td width="61%"><font face="sans-serif" size="2">[insert name of Potential
      Purchaser/Purchaser&#146;s agent/broker</font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><hr size="1" noshade></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p></p>
<p><font face="sans-serif" size="2"><b>Re: The Agreement</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="37%"> <hr size="1" noshade></td>
    <td width="2%">&nbsp;</td>
    <td width="61%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">Company:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">Date:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">Amount:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><font face="sans-serif" size="2">Agent</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td><hr size="1" noshade></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font face="sans-serif" size="2">Dear Sirs</font></p>
<p><font face="sans-serif" size="2">We understand that you are considering [acquiring]<sup>1</sup> /[arranging the acquisition of]<sup>2</sup> an interest in the Agreement (the &#147;<b>Acquisition</b>&#148;). In consideration of us agreeing to make available to  you certain information, by your signature of a copy of this letter you agree as follows:</font></p>
<p><font face="sans-serif" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Confidentiality Undertaking</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">You undertake (a) to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is protected with security measures and a degree of care that would apply to your own confidential information, (b) to use the Confidential Information only for the Permitted Purpose, (c) to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2[(c)/(d)]<sup>3</sup> below) acknowledges and complies with the provisions of this letter as if that person were also a party to it, and (d) not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Acquisition.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1</font></td>
    <td><font face="sans-serif" size="2">delete if addressee is acting as broker or agent. </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2</font></td>
    <td><font face="sans-serif" size="2">delete if addressee is acting as principal.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3</font></td>
    <td><font face="sans-serif" size="2">delete as applicable.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">78</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p83"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Permitted Disclosure</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">We agree that you may disclose Confidential Information:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">to members of the Purchaser Group and
      their officers, directors, employees and professional advisers to the extent
      necessary for the Permitted Purpose and to any auditors of members of the
      Purchaser Group;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2">[(b)</font></td>
    <td><font face="sans-serif" size="2">subject to the requirements of the Agreement, in accordance with the Permitted Purpose so long as any prospective purchaser has delivered a letter to you in equivalent form to this letter;]</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2">[(b/c)]<sup>3</sup></font></td>
    <td><font face="sans-serif" size="2">subject to the requirements of the Agreement, to any person to (or through) whom you assign or transfer (or may potentially assign or transfer) all or any of the rights, benefits and obligations which you may acquire under the Agreement or with (or through) whom you enter into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, the Agreement or the Borrower or any member of the Group so long as that person has delivered a letter to you in equivalent form to this letter; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2">[(c/d)]<sup>3</sup></font></td>
    <td><font face="sans-serif" size="2">(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of any stock exchange on which the shares or other securities of any member of the Purchaser Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Purchaser Group.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Notification of Required or Unauthorised Disclosure</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="4%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">You agree (to the extent permitted by law) to inform us of the full circumstances of any disclosure under paragraph 2[(c)/(d)]<sup>3</sup> or upon becoming aware that Confidential Information has been disclosed in breach of this letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Return of Copies</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential Information has been disclosed under paragraph 2[(c)/(d)]<sup>3</sup> above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Continuing Obligations</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us. Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub-participation) an interest, direct or indirect, in the Agreement or (b) twelve months after you have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph 2 above (other</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">79</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p84"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2"> than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No Representation; Consequences of Breach, etc</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">You acknowledge and agree that:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">neither we, [nor our principal]<sup>4</sup> nor any member of the Group nor any of our or their respective officers, employees or advisers (each a &#147;<b>Relevant Person</b>&#148;) (i) make any representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or the assumptions on which it is based or (ii) shall be under any obligation to update or correct any inaccuracy in the Confidential Information or any other information supplied by us or be otherwise liable to you or any other person in respect to the Confidential Information or any such information; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">we [or our principal]<sup>4</sup> or members of the Group may be irreparably harmed by the breach of the terms hereof and damages may not be an adequate remedy; each Relevant Person may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>No Waiver; Amendments, etc</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No failure or delay in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privileges hereunder. The terms of this letter and your obligations hereunder may only be amended or modified by written agreement between us and the Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Inside Information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Nature of Undertakings</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the benefit of [our principal,]<sup>4</sup> the Company and each other member of the Group.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Third Party Rights</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">Subject to paragraph 6 and to paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act 1999 is excluded.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<hr align="left" width="100" size="1" noshade>
<p></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font><font face="sans-serif" size="2">4</font></td>
    <td><font face="sans-serif" size="2"> delete if letter is sent out by the
      Seller rather than the Seller&#146;s broker or agent.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p><hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">80</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p85"></a>
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<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person (except for the Company) or any member of the Group to rescind or vary this letter at any time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Governing Law and Jurisdiction</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">This letter (including the agreement constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of England and the parties submit to the non-exclusive jurisdiction of the English courts.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Definitions</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">In this letter (including the acknowledgement set out below) terms defined in the Agreement shall, unless the context otherwise requires, have the same meaning and:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Confidential Information</b>&#148; means any information relating to the Borrower, any member of the Group, the Agreement and/or the Acquisition provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you thereafter, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Group</b>&#148; means the Company and each of its holding companies and subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Permitted Purpose</b>&#148; means [subject to the terms of this letter, passing on information to a prospective purchaser for the purpose of]<sup>2</sup> considering and evaluating whether to enter into the Acquisition; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Purchaser Group</b>&#148; means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such term is defined in the Companies Act 1985).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">Please acknowledge your agreement to the above by signing and returning the enclosed copy.</font></p>
<p><font face="sans-serif" size="2">Yours faithfully</font></p>
<p><font face="sans-serif" size="2">................................</font></p>
<p><font face="sans-serif" size="2">For and on behalf of</font></p>
<p><font face="sans-serif" size="2">[Seller/Seller&#146;s agent/broker]</font></p>
<p><font face="sans-serif" size="2">To: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Seller]
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Seller&#146;s
  agent/broker]<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Borrower and each other member of the Group</font></p>
<p><font face="sans-serif" size="2">We acknowledge and agree to the above:</font></p>
<p><font face="sans-serif" size="2">................................</font></p>
<p><font face="sans-serif" size="2">For and on behalf of</font></p>
<p><font face="sans-serif" size="2"><b>[Potential Purchaser/Purchaser&#146;s agent/broker]</b></font></p>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">81</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p86"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 9</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>FORM OF ACCESSION LETTER</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="6%"><font face="sans-serif" size="2">To:</font></td>
    <td width="94%"><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]</font>
      <font face="sans-serif" size="2">as Agent</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="6%"><font face="sans-serif" size="2">From:</font></td>
    <td width="94%"><font face="sans-serif" size="2">TopCo PLC and Six Continents
      PLC</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">Dated:</font></p>
<p><font face="sans-serif" size="2">Dear Sirs</font></p>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150; &pound;3,000,000,000 Facility Agreement<br>  dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is an Accession Letter. Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC agrees to become an Additional Borrower and to be bound by the terms of the Agreement as an Additional Borrower pursuant to Clause 23.2 (<i>Additional Borrowers</i>) of the Agreement. TopCo&nbsp;PLC is a company duly incorporated under the laws of England.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC&#146;s administrative details are as follows:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Address:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Fax No:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Attention:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">This Accession Letter is governed by English law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="20%"><font face="sans-serif" size="2">Six Continents PLC</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">82</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p87"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE 10</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>FORM OF RESIGNATION LETTER</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">To:</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font><font face="sans-serif" size="2">[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>]
      as Agent</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">From:</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC and Six Continents PLC</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">Dated:</font></p>
<p><font face="sans-serif" size="2">Dear Sirs</font></p>
<p align=center><font face="sans-serif" size="2"><b>Six Continents PLC &#150; &pound;3,000,000,000 Facility Agreement<br>  dated 3 February 2003 (the &#147;Agreement&#148;)</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">1.</font></td>
    <td><font face="sans-serif" size="2">We refer to the Agreement. This is a Resignation Letter. Terms defined in the Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">2.</font></td>
    <td><font face="sans-serif" size="2">Pursuant to Clause 23.3 (<i>Resignation of a Borrower)</i>, we request that Six Continents PLC be released from its obligations as a Borrower under the Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">3.</font></td>
    <td><font face="sans-serif" size="2">We confirm that:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(a)</font></td>
    <td><font face="sans-serif" size="2">no Event of Default is continuing or would result from the acceptance of this request; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(b)</font></td>
    <td><font face="sans-serif" size="2">Six Continents PLC is under no actual or contingent payment obligations as a Borrower under any Finance Documents.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">4.</font></td>
    <td><font face="sans-serif" size="2">This Resignation Letter is governed by English law.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="20%"><font face="sans-serif" size="2">Six Continents PLC</font></td>
    <td><font face="sans-serif" size="2">TopCo PLC</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="20%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">By:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">83</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p88"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><font face="sans-serif" size="2"><b>The Original Borrower</b></font></p>
<p><font face="sans-serif" size="2"><b>SIX CONTINENTS PLC</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Address: </font></td>
    <td><font face="sans-serif" size="2">20 North Audley Street<br> London W1K 6WN</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Fax No:</font></td>
    <td><font face="sans-serif" size="2">020 7409 8527</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Attention:</font></td>
    <td><font face="sans-serif" size="2">The Company Secretary</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">cc:</font></td>
    <td><font face="sans-serif" size="2">Treasurer<br> Six Continents PLC No<br> 1 First Avenue<br> Centrum 100<br> Burton on Trent<br> Staffordshire DE14 2WB</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Fax No: </font></td>
    <td><font face="sans-serif" size="2">01283 514767</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">RICHARD NORTH</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2"><b>The
      Arranger</b></font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">BARCLAYS
      CAPITAL</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">JOHN LOOMES</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">HSBC
      BANK plc</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">SUE BORRETT<br> ANDREW SMITH</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">J.P.
      MORGAN plc</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">MORTEN KNUDSEN</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">SALOMON
      BROTHERS INTERNATIONAL LIMITED</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">JOHN STAFFORD</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">THE
      ROYAL BANK OF SCOTLAND plc</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">LOIS SALTER</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2"><b>The
      Original Lenders</b></font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">BARCLAYS
      BANK PLC</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">JOHN LOOMES</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">CITIBANK,
      N.A.</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">JOHN STAFFORD</font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="2"><font face="sans-serif" size="2">HSBC BANK plc</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">84</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p89"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">SUE BORRETT</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td colspan="2"><font size="2">&nbsp;</font><font face="sans-serif" size="2">JPMORGAN
      CHASE BANK</font></td>
  </tr>
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">MORTEN KNUDSEN</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">THE ROYAL BANK OF SCOTLAND plc</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">DAVID TREACHER</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">The Agent</font></p>
<p><font face="sans-serif" size="2">HSBC BANK plc</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Address:</font></td>
    <td><font face="sans-serif" size="2">8 Canada Square<br> Level 17<br> London E14 5HQ</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Fax No:</font></td>
    <td><font face="sans-serif" size="2">020 7991 4351</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">Attention:</font></td>
    <td><font face="sans-serif" size="2">Chris Merrett</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="13%"><font face="sans-serif" size="2">By:</font></td>
    <td><font face="sans-serif" size="2">ANDREW SMITH</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align=center>&nbsp;</p>
<hr size="1" noshade>
<font face="sans-serif" size="1">A02583129/5.0/05 Feb 2003</font>
<p align="center"><font face="sans-serif" size="2">85</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>

</TEXT>
</DOCUMENT>
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<SEQUENCE>7
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<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>8
<FILENAME>b690316ex-4civ.htm
<TEXT>
<html>
<head>
    <title>Prepared and filed by St Ives Burrups</title>
</head>
<body>
<a name="p?"></a>
<div style="page-break-before:always"></div>
<p align="right"><font face="sans-serif" size="2"><b>Exhibit 4(c)(iv)</b></font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2">CONFORMED COPY</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td><font size="2">&nbsp;</font></td>
    <td width="10%"><font face="sans-serif" size="2">Dated</font></td>
    <td width="40%"><font face="sans-serif" size="2">12 February 2003</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<p align=center><font face="sans-serif" size="4">AGREEMENT</font></p>
<p></p>
<p><img src="linklaters.jpg"></p>
<p><font face="sans-serif" size="1">One Silk Street<br>  London EC2Y 8HQ</font></p>
<p><font face="sans-serif" size="1">Telephone (44&#150;20) 7456 2000<br>  Facsimile (44&#150;20) 7456 2222</font></p>
<p><font face="sans-serif" size="1">Ref RJJ</font></p>
<p></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-3-"></a>
<p><font face="sans-serif" size="2"><b>THIS AGREEMENT </b>is made on 12 February 2003</font></p>
<p><font face="sans-serif" size="2"><b>BETWEEN</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>(1)</b></font></td>
    <td><font face="sans-serif" size="2"><b>SIX CONTINENTS HOTELS, INC. </b>(formerly known as Bass Hotels &amp; Resorts Inc and Holiday Hospitality Corporation) successor in interest to Holiday Inns Inc. whose registered office is at Corporation Trust Centre, 1209 Orange Street, Wilmington DE 19801, and whose principal place of business is Three Ravinia Drive, Suite 100, Atlanta, GA 30346 (the &#147;<b>Company</b>&#148;);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>(2)</b></font></td>
    <td><font face="sans-serif" size="2"><b>THOMAS R OLIVER</b> of PO Box 1205, 291 Pilot Point Lane, Boca Grande, Florida 33921 (the &#147;<b>Executive</b>&#148;);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>WHEREAS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(A)</font></td>
    <td><font face="sans-serif" size="2">The Executive is employed by the Company pursuant to an Employment Agreement dated 18 February 1997 as amended by a letter agreement dated 29 April 1999, an Amendment to Employment Agreement of 1 March 2000 and an Amendment to Employment Agreement of 1 October 2000 (all of which are collectively referred to as the &#147;<b>Employment Agreement</b>&#148;).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(B)</font></td>
    <td><font face="sans-serif" size="2">Under the terms of a letter agreement between the Company and the Executive dated 28 July 1999 the Executive is seconded to Six Continents Hotels Group Company (the &#147;<b>Secondment Agreement</b>&#148;).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(C)</font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive have agreed that the employment and secondment referred to above shall expire by effluxion of time on 31 March 2003 upon the terms set out below.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(D)</font></td>
    <td><font face="sans-serif" size="2">The Executive has agreed to resign as a director of Six Continents PLC and all other companies within the Six Continents Group of which he is a director with effect from 31 March 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">(E)</font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive have agreed to enter into a consultancy agreement upon the terms set out below.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>IT IS HEREBY AGREED AS FOLLOWS:</b></font></p>
<p><font face="sans-serif" size="2"><b>1</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INTERPRETATION</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Change of Control</b>&#148; has the meaning set out in the March 2000 Agreement;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Consultancy Agreement</b>&#148; means the document attached to this Agreement as Exhibit A;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Employment Agreement</b>&#148; has the meaning set out in Recital (A) above;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>March 2000 Agreement</b>&#148; means the Amendment to Employment Agreement of 1 March 2000 referred to in Recital (A);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Secondment Agreement</b>&#148; has the meaning set out in Recital (B) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>2</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMENCEMENT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>2.1</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement shall come into effect on the date hereof.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">1</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-4-"></a>
<p><font face="sans-serif" size="2"><b>3</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EMPLOYMENT AND SECONDMENT AGREEMENTS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>3.1</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that notwithstanding any provision of the Employment Agreement or the Secondment Agreement both the Term of Employment (as defined in the Employment Agreement) and the Secondment Period (as defined in the Secondment Agreement) shall, continue until, and expire upon, 31 March 2003 by reason of effluxion of time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>3.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive further agree that for the avoidance of doubt if the Employment Agreement terminates on 31 March 2003 as contemplated by Clause 3.1 above,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the provisions of Clause 9(f) of the Employment Agreement shall apply (but subject always to Clause 6 below) and not Clause 28 thereof; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the Executive shall remain bound by the provisions of the Employment Agreement that are contemplated to continue notwithstanding expiration of the Term of Employment (as defined in the Employment Agreement) including, but not limited to, Clause 10 of the Employment Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>4</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EXPIRY OF EMPLOYMENT AGREEMENT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.1</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that, subject to the terms of Clause 3.2 above and the remaining provisions of this Clause 4, the terms of the Employment Agreement upon its expiry as contemplated by Clause 3.1 above shall be treated as fully discharged by the Company and the Executive and neither the Company nor the Executive shall be under any further obligation to the other but without prejudice to any rights that have accrued prior to 31 March 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that if the Employment Agreement expires on 31 March 2003 as contemplated by Clause 3.1 above;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Executive shall be entitled to participate in Six Continents medical plan in respect of the period between 1 April 2003 and 31 March 2005, subject to and in accordance with the terms of that plan and provided that the Executive complies with the provisions referred to in Clause 3.2 (ii) above; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the Company shall transfer on 1 April 2003 to the Executive such title as it has in his motor car (1997 Lexus 400LS) in consideration for the Executive paying to the Company the book value at 31 March 2003 or one US$ if greater.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>5</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>EXPIRY OF SECONDMENT AGREEMENT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.1</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that, subject to the remaining provisions of this Clause 5, the terms of the Secondment Agreement upon its expiry as contemplated by Clause 3.1 above shall be treated as fully discharged by the Company and the Executive and neither the Company nor the Executive shall be under any further obligation to the other but without prejudice to any rights that have accrued prior to 31 March 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">2</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
  <hr noshade align="center" width="100%" size="2">
  <div style="page-break-before:always"></div>
  <page> <a name="p-5-"></a>

<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that if the Secondment Agreement expires on 31 March 2003 as contemplated by Clause 3.1 above, the Executive shall be entitled to reimbursement for the cost of preparing his US and UK tax returns by a firm agreed by the Company incurred in the period between 1 April 2003 and 31 March 2005 subject to and in accordance with the terms applying at the date of this Agreement and provided that the Executive complies with the provisions referred to in Clause 3.2 (ii) above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.3</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that if the Secondment Agreement shall expire as contemplated by Clause 3.1 above and provided that the Executive complies with the provisions referred to in Clause 3.2 (ii) above, the Company shall</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">reimburse the costs and expenses incurred by the Executive by no later than 30 September 2003 in relocating his principal home from London to Florida subject to and in accordance with the terms of the Company&#146;s relocation policy; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">reimburse the estate agents fees incurred by the Executive in selling his home at 857, Fairfield Road, NW, Atlanta, GA 30327 by no later than 30 September 2003 and the removal costs incurred in transporting the personal contents of that home to Florida by no later than 30 September 2003 subject to and in accordance with the terms of the Company&#146;s relocation policy relating to estate agents fees and removal costs.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>6</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>TERMINATION BONUS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">Provided that the Employment and the
      Secondment Agreement expire on 31 March 2003 by reason of effluxion of time
      as contemplated by Clause 3.1 above, the Company agrees that the Chairman
      of Six Continents PLC and the Chief Executive of Six Continents Hotels shall
      at their absolute discretion determine whether the Executive shall receive
      a bonus of not more than US$650,000 (less such deductions to tax or otherwise
      as the Company is obliged to make) in respect of the period 1 October 2002
      to 31 March 2003. In making their determination the Chairman and Chief Executive
      shall, acting reasonably, review the performance of the Executive during
      this period including, but not limited to, the extent to which, and the
      drive and enthusiasm with which, the Executive has carried through the objectives
      set out in the Schedule to this Agreement. Any such bonus (of not more than
      US$650,000 (less such deductions to tax or otherwise as the Company is obliged
      to make) shall be treated as and in full satisfaction of the pro rata annual
      bonus for the year in which termination occurs pursuant to Clause 9(f)(ii)
      of the Employment Agreement. If any such bonus is made it will be paid no
      later than 11 April 2003 and into the Executive&#146;s Deferred Compensation
      Plan account. The Chairman agrees that it will advise the Executive if the
      Chairman of Six Continents PLC or the Chief Executive of Six Continents
      Hotels becomes aware of any concerns with the Executive&#146;s performance
      during the bonus year that would prevent the bonus being paid in its full
      amount. This includes any changes in instructions or guidance on the performance
      objectives due to workload, budgeting or other considerations which come
      about as a result of the management of the business by the Chief Executive
      Officer. It is also agreed that any such bonus as described above shall
      not be taken or brought into account in determining the amount of any contribution
      paid to the Executive&#146;s Deferred Compensation Plan account. For the
      avoidance of doubt it is agreed that the Executive shall not participate
      in the Special Deferred Incentive Plan in respect of the current financial
      year (1 October 2002 to 30 September 2003).</font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">3</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-6-"></a>
<p><font face="sans-serif" size="2"><b>7</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CONSULTANCY AGREEMENT</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.1</b></font></td>
    <td><font face="sans-serif" size="2">The Company and the Executive agree that they will subject to the terms of Clause 7.2 below enter into an agreement substantially in the form of the Consultancy Agreement to take effect on 1 April 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company shall only be obliged to enter into the Consultancy Agreement if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">the Executive has effected his resignation(s) contemplated by Recital (D) above;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">the Executive has complied with the terms of the Employment Agreement and the Secondment Agreement; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">the Employment Agreement and the Secondment Agreement expire by effluxion of time on 31 March 2003 as contemplated by Clause 3.1 above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.3</b></font></td>
    <td><font face="sans-serif" size="2">The parties agree that if by reason of a Change of Control the Consultancy Agreement does not commence on 1 April 2003 the Company shall pay to the Executive the sum of US$500,000 (less such deductions for tax or otherwise as the Company is obliged to make) and the Consultancy Agreement shall be treated as having terminated by mutual agreement without liability on either the Company or the Executive.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>8</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>MISCELLANEOUS</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.1</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement may only be modified by the written agreement of the parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.2</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in it. It contains the whole agreement between the parties (except for those terms implied by law which cannot be excluded by the Agreement of the parties) in relation to the subject matter of this Agreement at the date of this Agreement. The Executive acknowledges that he has not been induced to enter into this Agreement by any representation, warranty or undertaking not expressly incorporated into it. The Executive agrees and acknowledges that his only rights and remedies in relation to any representation, warranty or undertaking made or given in connection with this Agreement (unless such representation, warranty or undertaking was made fraudulently) will be for breach of the terms of this Agreement, to the exclusion of all other rights and remedies (including those in tort or arising under statute).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.3</b></font></td>
    <td><font face="sans-serif" size="2">Neither party&#146;s rights or powers under this Agreement will be affected if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2"><b>8.3.1</b></font></td>
    <td><font face="sans-serif" size="2">one party delays in enforcing any provision of this Agreement; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="4%"><font face="sans-serif" size="2"><b>8.3.2</b></font></td>
    <td><font face="sans-serif" size="2">one party grants time to the other party.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.4</b></font></td>
    <td><font face="sans-serif" size="2">If either party agrees to waives his
      rights under a provision of this Agreement, that waiver will only be effective
      if it is in writing and it is signed by him. A party&#146;s agreement to
      waive any breach of any term or condition of this Agreement will not be
      regarded as a waiver of any subsequent breach of the same term or condition
      or a different term or condition.</font></td>
  </tr>
  <tr valign=top>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">4</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-7-"></a>
<p><font face="sans-serif" size="2"><b>9</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GOVERNING LAW ETC.</b></font></p>
<p><font face="sans-serif" size="2">This Agreement shall be governed by and construed in accordance with Georgia law, without regard to its rules regarding conflicts of law. Any controversy or claim arising out of or relating to this  Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The place of arbitration shall be Atlanta, Georgia. The parties  agree that the award of the arbitrators shall be the sole and exclusive remedy between them, and judgment upon the award of the arbitrators may be entered in any court having jurisdiction. The  Award shall include interest from the date of any damages incurred and from the date of the award until paid in full, at a rate equal to the prime commercial lending rate published in the Wall Street  Journal on the date of the award.</font></p>
<p><font face="sans-serif" size="2"><b>IN WITNESS WHEREOF</b> the undersigned have executed this Agreement in Georgia on the date first written above.</font></p>
<p>&nbsp;</p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"> <font face="sans-serif" size="2"><b>EXECUTED </b>by<b><br>
      SIX CONTINENTS HOTELS, INC.</b></font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"> <font face="sans-serif" size="2">By: Stevan D. Porter</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"> <font face="sans-serif" size="2">Name (Print):&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STEVAN
      D. PORTER</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td bgcolor="#ffffff"> <font face="sans-serif" size="2">Title: PRESIDENT</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td bgcolor="#FFFFFF"> <p><font face="sans-serif" size="2"><b>SIGNED</b> by<b><br>
        THOMAS R OLIVER</b></font><br>
        <font face="sans-serif" size="2">was hereunto affixed in the presence
        of:</font></p></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td valign=bottom><font size=7>}</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right valign=bottom><font face="sans-serif" size="2">&nbsp;</font></td>
    <td valign=middle><font face="sans-serif" size="2">Thomas R. Oliver<br>
      </font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">5</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p><a name="p-8-"></a></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">

  <tr valign=bottom bgcolor="#FFFFFF">
    <td> <font face="sans-serif" size="2">Witness's signature</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">Gillian Chrusclkowska</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td>&nbsp;</td>
    <td colspan=5 valign=bottom>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td> <font face="sans-serif" size="2">Name</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">GILLIAN CHRUSCLKOWSKA</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td> <font face="sans-serif" size="2">Address</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">2 GRAYSWOOD PLACE<br>
      HASLEMERE<br>
      SURREY</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td align=right><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#FFFFFF">
    <td> <font face="sans-serif" size="2">Occupation</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">SECRETARY</font></td>
    <td><font face="sans-serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">6</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-9-"></a>
<p align=center><font face="sans-serif" size="2"><b>SCHEDULE</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>T R OLIVER</b></font></p>
<p align=center><font face="sans-serif" size="2"><b>PERSONAL BUSINESS OBJECTIVES</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>1</b></font></td>
    <td><font face="sans-serif" size="2">Represent Six Continents Hotels at all IAHI board meetings and major social functions through March 2003 in both Europe and the Americas.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>2</b></font></td>
    <td><font face="sans-serif" size="2">Introduce and fully support Chief Executive of Six Continents Hotels and the new management team at the Worldwide Conference in San Diego in November 2002.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>3</b></font></td>
    <td><font face="sans-serif" size="2">Co&#151;ordinate the development and launch of the new Crowne Plaza &#147;The Place to Meet&#148; global marketing programme on or about March 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4</b></font></td>
    <td><font face="sans-serif" size="2">Co&#151;ordinate the development of the
      2nd phase of the Intercontinental &#147;We Know What It Takes&#148; marketing
      programme.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5</b></font></td>
    <td><font face="sans-serif" size="2">Provide advice, information, and counsel to Chief Executive of Six Continents Hotels as requested or spontaneously if such would be helpful to his success.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"> <font face="sans-serif" size="1">A02579062/0.19/14 Feb 2003</font></td>
    <td align="center"><font face="sans-serif" size="2">7</font></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>9
<FILENAME>b690316ex-4cv.htm
<TEXT>
<html>
<head>
    <title>Prepared and filed by St Ives Burrups</title>
</head>
<body>
<a name="p?"></a>
<div style="page-break-before:always"></div>
<p align="right"><font face="sans-serif" size="2"><b>Exhibit 4(c)(v)</b></font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><font face="sans-serif" size="2"><u>CONFORMED COPY</u></font></p>
<p align=center><font face="sans-serif" size="2">Dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12 February 2003</font></p>
<p align=center><font face="sans-serif" size="4">CONSULTANCY AGREEMENT</font></p>
<p align="left"><img src="linklaters.jpg"></p>
<p><font face="sans-serif" size="1">One Silk Street<br>  London EC2Y 8HQ</font></p>
<p><font face="sans-serif" size="1">Telephone (44-20) 7456 2000<br>
  Facsimile (44-20) 7456 2222</font></p>
<p><font face="sans-serif" size="1">Ref RJJ</font></p>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-2-"></a>
<p><font face="sans-serif" size="2"><b>This Agreement is made on 12 February 2003 between</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>(1)</b></font></td>
    <td><font face="sans-serif" size="2"><b>SIX CONTINENTS HOTELS, INC.</b> whose registered office is at Corporation Trust Centre, 1209 Orange Street, Wilmington, DE 19801, and whose principal place is business is Three Ravinia Drive, Suite 100, Atlanta, GA 30346 (the <b>&#147;Company</b>&#148;); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>(2)</b></font></td>
    <td><font face="sans-serif" size="2"><b>THOMAS R OLIVER</b> of PO Box 1205,
      291, Pilot Point Lane, Boca Grande, Florida 33921 (<b>&#147;the Consultant</b>&#148;).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">This Agreement records the terms on which the Consultant will provide Services to the Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>1</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Interpretation</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>1.1</b></font></td>
    <td><font face="sans-serif" size="2">In this Agreement :</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Board</b>&#148; means the board of directors of the Company from time to time;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Company&#146;s Representative</b>&#148; shall mean the Chief Executive of the ultimate holding company of the Company or such other person as the Board may nominate from time to time;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Demerger</b>&#148; means the proposed demerger of the hotels and retail businesses of the Six Continents Group;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Expiry Date</b>&#148; has the meaning set out in Clause 2.1 and subject to Clause 2.2;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Group</b>&#148; means the Company, its ultimate holding company for the time being and the associated companies (as defined in section 435 of the UK Insolvency Act 1986) of the Company for the time being;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Group Company</b>&#148; means a member of the Group and &#147;<b>Group Companies</b>&#148; will be interpreted accordingly; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>holding company</b>&#148; has the meaning given in section 736 of the UK Companies Act 1985;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>1.2</b></font></td>
    <td><font face="sans-serif" size="2">references to any statutory provisions include any modifications or re-enactments of those provisions; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>1.3</b></font></td>
    <td><font face="sans-serif" size="2">headings are for convenience and do not affect the interpretation of this Agreement.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>2</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Commencement and Duration</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>2.1</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement will commence on 1 April 2003 and shall, subject to Clause 2.2 and Clause 11 below, continue until 31 March 2005 (the &#147;<b>Expiry Date</b>&#148;).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>2.2</b></font></td>
    <td><font face="sans-serif" size="2"> If the Demerger is not completed by 30 June 2003 this Agreement shall automatically expire on that date without liability on either party and neither the Company nor the Consultant shall be under any further obligation to the other but without prejudice to any rights that have accrued prior to 30 June 2003.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>3</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The Consultant&#146;s Services</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>3.1</b></font></td>
    <td><font face="sans-serif" size="2">The Company agrees to engage the Consultant and the Consultant agrees to act as a Consultant.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>3.2</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant agrees to provide the following services (the &#147;<b>Services</b>&#148;):</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>

<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-1-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-3-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>3.2.1</b></font></td>
    <td><font face="sans-serif" size="2">to advise and assist the Company&#146;s Representative on all aspects of the business, finances and affairs of the hotel business of the Group; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>3.2.2</b></font></td>
    <td><font face="sans-serif" size="2">in particular, to:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">&#149;</font></td>
    <td><font face="sans-serif" size="2">coordinate such marketing studies and marketing projects for the Group,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">&#149;</font></td>
    <td><font face="sans-serif" size="2">develop and arrange such training on quality of service and marketing,</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">&#149;</font></td>
    <td><font face="sans-serif" size="2">conduct such on-site reviews of the Group&#146;s hotels facilities and services</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">as the Company&#146;s Representative may in each case from time to time request; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>3.2.3</b></font></td>
    <td><font face="sans-serif" size="2">to carry out such reasonable tasks as the Chairman or Chief Executive of the ultimate holding company of the Company may determine from time to time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>4</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The Consultant&#146;s Responsibilities</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.1</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will devote whatever time, attention and skill is needed to perform the Services properly (unless prevented from doing so by ill health or injury) subject to a maximum of 250 hours per annum.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.2</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will keep the Company&#146;s Representative informed of the progress and status of any projects on which he is engaged, by reporting in such manner as the Company&#146;s Representative agrees with the Consultant from time to time.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.3</b></font></td>
    <td><font face="sans-serif" size="2">Whilst the Consultant&#146;s method of work is the Consultant&#146;s own, the Consultant will comply with the reasonable requests of the Company&#146;s Representative.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.4</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will use his best endeavours to promote the interests and reputation of the Company and other Group Companies.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.5</b></font></td>
    <td><font face="sans-serif" size="2">Subject to Clause 9, the Consultant will be responsible for providing or procuring any data, equipment or other materials needed to enable him to provide the Services.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>4.6</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will work and co-operate with any personnel of the Company and any other Group Company and with any other consultants the Company and any other Group Company appoints.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2">5</font></td>
    <td><font face="sans-serif" size="2">Activities of the Consultant during the Consultancy</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>5.1</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this Clause 5 the expressions below have the meaning ascribed to them respectively below:</font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Competing Enterprise</b>&#148;
      shall mean any person, corporation, partnership, venture or other entity
      (&#147;<b>entity</b>&#148;) which engages either (i) in the business of
      managing, franchising, running, leasing, owning or joint venturing at least
      50 hotels, or (ii) which purchases or takes options on hotel rooms (&quot;hotel
      booking&quot;) and in the case of (i) and (ii) the entity&#146;s shares
      are publicly traded and the entity has a market capitalisation of not less
      than one billion pounds sterling (for these purposes &quot;market capitalisation&quot;
      shall be the aggregate market value of the ordinary shares of such entity);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Relevant Period</b>&#148; means
      the period from 1 April 2003 to 31 March 2005 or, if earlier, the date on
      which this Agreement is lawfully terminated without notice by the Consultant
      where such termination is by reason of the Company&#146;s breach of the
      Agreement or expires by reason of Clause 2.2 hereof (provided that if the
      Consultant serves notice of termination in accordance with Clause 11.5 hereof
      the &#147;Relevant Period&#148; shall be the period of three months commencing with
      the date on which such notice is served, or 30 September 2003 if later);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-2-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-4-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">&#147;<b>Restricted Activities</b>&#148; means executive, managerial, directorial, administrative, strategic, business development or supervisory responsibilities and activities relating to all aspects of hotel ownership, hotel management, hotel franchising, hotel joint-venturing or hotel booking but excluding (i) the Consultant&#146;s employment by a unit of a Competing Enterprise which unit is not itself engaged in Restricted Activities, so long as the Consultant&#146;s duties and responsibilities with respect to such employment are limited to the business of such unit or (ii)the Consultant&#146;s employment by an entity which includes a Competing Enterprise where such Competing Enterprise produces revenues that account for less than 5% of the gross revenues of the entity and such Competing Enterprise is not a material part of the Consultant&#146;s responsibilities.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.2</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant agrees that during the Relevant Period he will not without the prior written consent of the Company:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(i)</font></td>
    <td><font face="sans-serif" size="2">become associated with or engage in any Restricted Activities with respect to any Competing Enterprise whether as officer, employee, principal, partner, agent, consultant, independent contractor or shareholder (other than as a holder of not in excess of 1% of the outstanding voting shares of any publicly traded company);</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(ii)</font></td>
    <td><font face="sans-serif" size="2">solicit or attempt to solicit for employment with or on behalf of any corporation, partnership, venture or other business entity, any management-level employee of the Company or any other Group Company (including for this purpose any General Manager of any hotel owned by the Company or any other Group Company); and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2">(iii)</font></td>
    <td><font face="sans-serif" size="2">solicit or attempt to solicit on his own behalf, or for or on behalf of any corporation, partnership, venture, or other business entity, any person or business entity who at the relevant time is a franchisee or joint venture partner of the Company or any other Group Company for the purpose of providing any services relating to the business of managing, running; owning, leasing, selling, buying, or joint venturing hotels or hotel booking.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.3</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant agrees that each of the paragraphs contained in Clause 5.2 above constitute an entirely separate and independent covenant on his part and the validity of one paragraph shall not be affected by the invalidity or unenforceability of another.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.4</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant agrees that he will at the request and cost of the Company enter into a direct agreement or undertaking with any Group Company whereby he will accept restrictions and provisions corresponding to the restrictions and provisions above (or such of them as may be reasonable and appropriate in the circumstances) in relation to such activities and such areas and for such a period as such company may reasonably require for the protection of its legitimate interests.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.5</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant agrees that having regard to the facts and matters set out above the restrictive covenants contained in this Clause 5 are necessary for the protection of the business and confidential information of the Company and other Group Companies.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.6</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant and the Company agree that while the restrictions imposed in this Clause are considered necessary for the protection of the Company and other Group Companies it is agreed that if any one or more of such restrictions shall either taken by itself or themselves together be adjudged to go beyond what is reasonable in all the circumstances for the protection of the Company&#146;s or any Group Company&#146;s legitimate interest but would be adjudged reasonable if any particular restriction or restrictions were deleted or if any part or </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-3-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-5-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">parts of the wording thereof were deleted, restricted or limited in a particular manner then the said restrictions shall apply with such deletions, restrictions or limitations as the case may be.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>5.7</b></font></td>
    <td><font face="sans-serif" size="2">The Company acknowledges and agrees that consent has already been given and that it continues to consent to the Consultant being a director of Interface Inc of Atlanta, Georgia].</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>6</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The Consultant&#146;s Fees</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>6.1</b></font></td>
    <td><font face="sans-serif" size="2">During the terms of this Agreement, the Company will pay the Consultant for providing the Services a fee at the rate of US$250,000 per annum exclusive of VAT or other taxes and less such deductions for tax or otherwise as the Company is obliged to make (where applicable).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>6.2</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will submit relevant invoices at monthly intervals to the Company at its principal office for the consultancy fees showing any VAT or other taxes (if applicable) separately. No fees will be paid unless the Company receives an invoice. The Company shall discharge invoices received no later than the 15th day of each month.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>7</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Confidential Information</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.1</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant shall not (except in the proper performance of the Services) use or disclose, or allow to be used or disclosed, any trade secrets or confidential information of the Company which the Consultant has received (whether before the date of this Agreement and in whatever capacity) without the prior written consent of the Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.2</b></font></td>
    <td><font face="sans-serif" size="2">Clause 7.1 will continue to apply after the termination of this Agreement, but will not apply to information which comes into the public domain other than through unauthorised disclosure by the Consultant and in any event Clause 7.1 will terminate three years after the termination of this Agreement. The Consultant will use his best endeavours to prevent the unauthorised use or disclosure of such information.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>7.3</b></font></td>
    <td><font face="sans-serif" size="2">Clause 7.1 will apply (with the necessary amendments) to trade secrets and confidential information of each Group Company which the Consultant has received. At the Company&#146;s request, the Consultant will enter into a separate agreement or undertaking with any Group Company in the form of Clause 7.1 or on whatever terms such company considers necessary to protect its legitimate business interests in such information.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>8</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Intellectual Property Rights</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.1</b></font></td>
    <td><font face="sans-serif" size="2">If the Consultant (alone or with others) during this Agreement makes or creates an idea, method, invention, discovery, design or other work in performing his obligations under this Agreement (&#147;<b>Work</b>&#148;), the Consultant will disclose promptly full details of the Work to the Company and, if adopted by the Company within a reasonable period but in any event not less than one year, all rights in it will belong to the Company or any other Group Company, as appropriate.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.2</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>8.2.1</b></font></td>
    <td><font face="sans-serif" size="2">will assign to the Company or any other Group Company, as appropriate all rights, title and interest in any current or future Work (whether existing now or brought into being in the future) which is or may become a copyright work anywhere in the world; and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>8.2.2</b></font></td>
    <td><font face="sans-serif" size="2">will consider himself trustee for the Company or any other Group Company, as appropriate in relation to all such Works.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-4-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-6-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">The Consultant will in either case, at the request and expense of the Company, do everything necessary to vest all rights, title and interest in any Work in the Company or its nominee or any other Group Company absolutely as legal and beneficial owner and to secure patent or other appropriate forms of protection for the Work anywhere in the world.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.3</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will not disclose or make use of any Work without the Company&#146;s prior written consent except to provide the Services.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.4</b></font></td>
    <td><font face="sans-serif" size="2">So far as permitted by law, the Consultant irrevocably waive any rights the Consultant may have under Chapter IV (moral rights) of Part I of the UK Copyright, Designs and Patents Act 1988 and any of the US or any other jurisdiction corresponding rights in respect of all Works.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.5</b></font></td>
    <td><font face="sans-serif" size="2">Rights and obligations under this Clause 8 will continue in force after the termination of this Agreement in respect of Works made during this Agreement and will be binding on the Consultant&#146;s personal representatives.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>8.6</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will not do or fail to do any act which would or might prejudice the rights of the Company or any other Group Company under this Clause 8.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9</b></font></td>
    <td><b><font face="sans-serif" size="2">Independent Contractor Status</font></b></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.1</b></font></td>
    <td><font face="sans-serif" size="2">Notwithstanding any other provision of this Agreement or otherwise, in performing the services, Consultant is doing so as an independent contractor, not as an employee, agent or partner of the Company or any other Group Company. From and after the beginning of the term of this Agreement, at no time shall either party make any commitments or incur any charges or expenses for or in the name of the other party, or be considered the agent, partner, joint venturer, employer or employee of the other party, and in no event shall performing services under this Agreement give Consultant any right in or claim to any employee benefits of the Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company will not be liable for any of the Consultant&#146;s acts or omissions and the Consultant undertakes to the Company for itself and as agent and trustee for each Group Company that he will indemnify and keep the Company and each Group Company indemnified against all costs, claims, expenses and liabilities whatsoever and howsoever incurred resulting from or arising out of any of the Consultant&#146;s acts or omissions.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.3</b></font></td>
    <td><font face="sans-serif" size="2">If the Company requests, the Consultant will enter into an agreement with any other Group Company to provide that company with an equivalent indemnity to that provided to the Company in Clause 9.2.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.4</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will not pledge the credit of the Company or any other Group Company sign any document, enter into any agreement or make any promise on behalf of the Company or any other Group Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.5</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will account for any income tax, national insurance contribution or Value Added Tax payable in connection with this Agreement to the appropriate authorities. The Consultant undertakes to the Company for itself and as agent and trustee for each Group Company that he will indemnify and keep the Company indemnified in respect of any assessment, determination or demand levied or made by any taxation authority (including but not limited to, the IRS, any State and/or its agencies, the Inland Revenue and/or the Contributions Agency and/or HM Customs and Excise) arising out of or in connection with this Agreement and any interest, charges or penalties in relation thereto together with any costs and expenses incurred by the Company in dealing with any assessment, determination or demand.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-5-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-7-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.6</b></font></td>
    <td><font face="sans-serif" size="2">If the Company requests, the Consultant will enter into an agreement with any other Group Company to provide that company with an equivalent indemnity to that provided to the Company in Clause 9.7.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.7</b></font></td>
    <td><font face="sans-serif" size="2">Subject to the Consultant&#146;s other obligations under this Agreement, nothing will prevent the Consultant from engaging in other consultancy activities or in part&#151;time employment.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>9.8</b></font></td>
    <td><font face="sans-serif" size="2">If the Consultant is unable to perform the Services, the Consultant will give the Company as much prior warning as possible of his unavailability and the Consultant will suggest a suitable substitute consultant to perform the Services.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>10</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Documents and Materials</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">At any time during this Agreement or on termination of this Agreement, the Consultant will (at the request of the Company) deliver to the Company all documents and other materials prepared by the Consultant in connection with the Services and the Consultant will not make or retain any copies of them. The Consultant will also (at the request of the Company) deliver to the Company all other property belonging to or relating to any Group Company which is in his possession or under his control.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>11</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Early Termination</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>11.1</b></font></td>
    <td><font face="sans-serif" size="2">If the Consultant does not carry out the Services for three consecutive months or more, the Company will be entitled to terminate this Agreement immediately by notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>11.2</b></font></td>
    <td><font face="sans-serif" size="2">The Company can terminate this Agreement immediately by notice if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>11.2.1</b></font></td>
    <td><font face="sans-serif" size="2">the Consultant has not performed the Services to the standard reasonably required by the Board; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>11.2.2</b></font></td>
    <td><font face="sans-serif" size="2">the Consultant does not comply with Clauses 3.2, 4.2, 4.3, 5, 7, 8, 9.2, 9.3, 9.4, 9.5, 9.6, 10 or 11 of this Agreement; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>11.2.3</b></font></td>
    <td><font face="sans-serif" size="2">the Consultant materially breaches any of his other obligations under this Agreement; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>11.2.4</b></font></td>
    <td><font face="sans-serif" size="2">the Consultant does anything which, in the opinion of the Board, brings the Consultant or the Company or any other Group Company into disrepute.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>11.3</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant will have no claim for damages or any other remedy against the Company if this Agreement is terminated for any of the reasons set out in this Clause 11.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>11.4</b></font></td>
    <td><font face="sans-serif" size="2">If the Company terminates this Agreement in breach the Company shall at the request of the Consultant by way of liquidated damages pay the Consultant a sum equal to the fees that would have been paid to the Consultant pursuant to Clause 6.1 above up to the Expiry Date. Such payment shall be subject to such deductions, including tax, as the Company is obliged to make and conditional upon the Consultant entering into such agreement or agreements under seal as the Company may reasonably require (including a release agreement) whereby the Consultant accepts such sum in full and final settlement of all and any claims that the Consultant would have against the Company arising out of the termination of this Agreement and validly waives all such claims against the Company.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>11.5</b></font></td>
    <td><font face="sans-serif" size="2">The Consultant may terminate this Agreement (but without prejudice to those provisions that are expressed to apply after its termination) by giving to the Company not less than three months&#146; notice.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-6-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-8-"></a>
<p><font face="sans-serif" size="2"><b>12</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Assignment</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>12.1</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement is personal to the Consultant
      and the Consultant cannot assign, delegate or sub-contract his obligations
      under it to anyone else.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>12.2</b></font></td>
    <td><font face="sans-serif" size="2">Without prejudice to Clause 12.1, with prior written approval of the Company (which will not be unreasonably withheld or delayed) the Consultant may engage his own employees or independent contractors to assist him with his work under this agreement. Any such employees or independent contractor proposed by the Consultant will, if required by the Company, first enter into direct covenants with the Company and any other Group Company in terms similar to Clauses 5, 7, 8, 9 and 10.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>13</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Notices</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>13.1</b></font></td>
    <td><font face="sans-serif" size="2">Any notices given under this Agreement must be given by letter or fax. Notice to the Company must be addressed to its registered office at the time the notice is given with a copy addressed to the Company Secretary of the ultimate holding company of the Company (at the registered office of the holding company). Notice to the Consultant must be given to him personally or sent to his last known address. Any letter must be sent by expedited courier service.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>13.2</b></font></td>
    <td><font face="sans-serif" size="2">Except for notices given by hand, notices will be deemed to have been given at the time at which the letter or fax would be delivered in the ordinary course of post or transmission.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>14</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Miscellaneous</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>14.1</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement may only be modified by the written agreement of the parties.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>14.2</b></font></td>
    <td><font face="sans-serif" size="2">This Agreement supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in it. It contains the whole agreement between the parties (except for those terms implied by law which cannot be excluded by the Agreement of the parties) in relation to the subject matter of this Agreement at the date of this Agreement. The Consultant acknowledges that he has not been induced to enter into this Agreement by any representation, warranty or undertaking not expressly incorporated into it. The Consultant agrees and acknowledges that his only rights and remedies in relation to any representation, warranty or undertaking made or given in connection with this Agreement (unless such representation, warranty or undertaking was made fraudulently) will be for breach of the terms of this Agreement, to the exclusion of all other rights and remedies (including those in tort or arising under statute).</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>14.3</b></font></td>
    <td><font face="sans-serif" size="2">Neither party&#146;s rights or powers under this Agreement will be affected if:</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>14.3.1</b></font></td>
    <td><font face="sans-serif" size="2">one party delays in enforcing any provision of this Agreement; or</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="sans-serif" size="2"><b>14.3.2</b></font></td>
    <td><font face="sans-serif" size="2">one party grants time to the other party.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font face="sans-serif" size="2"><b>14.4</b></font></td>
    <td><font face="sans-serif" size="2">If either party agrees to waives his rights under a provision of this Agreement, that waiver will only be effective if it is in writing and it is signed by him. A party&#146;s agreement to waive any breach of any term or condition of this Agreement will not be regarded as a waiver of any subsequent breach of the same term or condition or a different term or condition.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font face="sans-serif" size="2"><b>15</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Governing Law</b></font></p>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">This Agreement shall be governed by and construed in accordance with Georgia law, without regard to its rules regarding conflicts of law. Any controversy or claim arising out of or relating </font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3"><hr width="100%" size="1" noshade></td>
  </tr>
  <tr>
    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-7-</font></div></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<p></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p-9-"></a>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">to this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration rules of the American Arbitration Association. The place of arbitration shall be Atlanta, Georgia. The parties agree that the award of the arbitrators shall be the sole and exclusive remedy between them, and judgment upon the award of the arbitrators may be entered in any court having jurisdiction. The Award shall include interest from the date of any damages incurred and from the date of the award until paid in full, at a rate equal to the prime commercial lending rate published in the Wall Street Journal on the date of the award.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="centre" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td><font face="sans-serif" size="2">IN WITNESS WHEREOF the undersigned have executed this Agreement in Georgia on the date first written above.</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
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<font face="sans-serif" size="2"><b>EXECUTED </b>by<b><br> SIX CONTINENTS HOTELS, INC.</b></font></td>
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<font face="sans-serif" size="2">By: Stevan D. Porter</font></td>
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<font face="sans-serif" size="2">Name (Print):&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STEVAN D. PORTER</font></td>
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<font face="sans-serif" size="2">Title: PRESIDENT</font></td>
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      <font face="sans-serif" size="2">SIGNED as a DEED by<b><br> THOMAS R OLIVER </b>in the presence of:</font></td>
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    <td valign=bottom><font size=7>}</font></td>
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    <td valign=bottom><font face="sans-serif" size="2">Thomas R. Oliver<br><br>

       Gillian Chrusclkowska</font></td>
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    <td>
     <font face="sans-serif" size="2">Name</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">GILLIAN CHRUSCLKOWSKA</font></td>
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    <td>
      <font face="sans-serif" size="2">Address</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">2 GRAYSWOOD PLACE<br>
       HASLEMERE<br> SURREY</font></td>
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    <td>
     <font face="sans-serif" size="2">Occupation</font></td>
    <td colspan=5 valign=bottom><font face="sans-serif" size="2">SECRETARY</font></td>
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    <td width="30%"><font face="sans-serif" size="1">A02576260/0.15/14 Feb 2003</font></td>
    <td><div align="center"><font face="sans-serif" size="2">-8-</font></div></td>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8
<SEQUENCE>10
<FILENAME>b690316ex-8.htm
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Prepared and filed by St Ives Burrups
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<p align="right"><b><font size="2" face="sans-serif">Exhibit 8</font></b></p>
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<p align="left"><font size="2" face="serif">A list of the Company&#8217;s subsidiaries is provided under the heading &#8220;Item 4. Information on the Company &#150; Organizational Structure &#150; Principal operating subsidiary undertakings&#8221;.</font></p>
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