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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001021231-03-000865.txt : 20030912
<SEC-HEADER>0001021231-03-000865.hdr.sgml : 20030912
<ACCEPTANCE-DATETIME>20030912092226
ACCESSION NUMBER:		0001021231-03-000865
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030912
FILED AS OF DATE:		20030912

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTERCONTINENTAL HOTELS GROUP PLC /NEW/
		CENTRAL INDEX KEY:			0000858446
		STANDARD INDUSTRIAL CLASSIFICATION:	HOTELS & MOTELS [7011]
		IRS NUMBER:				250420260
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10409
		FILM NUMBER:		03892919

	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:			W1K 6WN

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SIX CONTINENTS PLC
		DATE OF NAME CHANGE:	19950531
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>b722645.htm
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Prepared and filed by St Ives Burrups
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<p align="center"><font size="2" face="serif">
</font><font size="4" face="serif"><b>SECURITIES AND EXCHANGE COMMISSION</b> </font><br>
<font size="2" face="serif"><b>Washington DC 20549</b></font></p>
<hr align="center" width="150" size="2" noshade>
<p align="center"><font size="5" face="serif"><b>FORM 6-K</b></font></p>
<p align="center"><font size="2" face="serif"><b>REPORT OF FOREIGN PRIVATE ISSUER
      PURSUANT TO RULE 13a-16 AND 15d-16 OF</b></font><br>
    <font size="2" face="serif"><b>THE SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p align="center"><font size="2" face="serif">For 12<sup>th</sup> September 2003</font></p>
<p align="center"><font size="5" face="serif"><b>InterContinental Hotels Group
      PLC</b></font><br>
    <font size="2" face="serif"> (Registrant&#8217;s name)</font></p>
<p align="center"><font size="2" face="serif">20 North Audley Street</font><br>
    <font size="2" face="serif">London W1K 6WN, England</font><br>
    <font size="2" face="serif">(Address of principal executive offices)</font></p>
<hr align="center" width="150" size="2" noshade>
<p align="left"><font size="2" face="serif">Indicate by check mark whether the
    registrant files or will file annual reports under cover Form 20-F or Form
    40-F.</font></p>
<p align="center"><font size="2" face="serif">Form 20-F&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
    40-F&nbsp;&nbsp;&nbsp;<img src="emptybox.gif"></font></p>
<p align="left"><font size="2" face="serif">Indicate by check mark whether the
    registrant by furnishing the information contained in this form is also thereby
    furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
    the Securities Exchange Act of 1934.</font></p>
<p align="center"><font size="2" face="serif">Yes&nbsp;&nbsp;&nbsp;<img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif"></font></p>
<p align="left"><font size="2" face="serif">If &#8220;Yes&#8221; is marked, indicate
    below the file number assigned to the registrant in connection with Rule
    12g3-2(b): <u>Not applicable</u></font></p>
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<p>&nbsp;</p>
<table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" width="50%"><font size="2" face="serif">12th September, 2003</font></td> <td align="left"><font size="2" face="serif">&nbsp;</font></td> </tr> </table>  <p align="center"><font size="2" face="serif"><b>InterContinental Hotels Group PLC<br>
Pro forma Results for the Six months to 30 June 2003</b></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff">
<td colspan="2" align="left"><div align="right"><font size="1" face="serif">&nbsp;</font></div></td>
<td align="center"><div align="right"><font size="1" face="serif"><b>6 months
        to</b></font><font size="1"><br>
        <font face="serif"><b>30 June 2003*</b></font><br>
    <font face="serif"><b>&pound;m</b></font></font></div></td>
<td><div align="right"><font size="1">&nbsp;</font></div></td>
<td align="center"><div align="right"><font size="1" face="serif"><b>6 months
        to</b></font><font size="1"><br>
        <font face="serif"><b>30 June 2002*</b></font><br>
    <font face="serif"><b>&pound;m</b></font></font></div></td>
<td align="right"><div align="right"><font size="1">&nbsp;</font></div></td>
<td align="center"><div align="right"><font size="1" face="serif"><b>%</b></font><font size="1"><br>
        <font face="serif"><b>Change</b></font></font></div></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Hotels</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td>&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">&#151; EBITDA</font></td>
<td width="8%" align="right"><font size="2" face="serif">162</font></td>
<td width="2%">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">194</font></td>
<td width="2%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">(16.5</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&#151; Operating Profit</font></td>
<td align="right"><font size="2" face="serif">86</font></td>
<td>&nbsp;</td>
<td align="right"><font size="2" face="serif">126</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(31.7</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Soft Drinks</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td>&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">&#151; EBITDA</font></td>
<td align="right"><font size="2" face="serif">61</font></td>
<td>&nbsp;</td>
<td align="right"><font size="2" face="serif">57</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.0</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&#151; Operating Profit</font></td>
<td align="right"><font size="2" face="serif">39</font></td>
<td>&nbsp;</td>
<td align="right"><font size="2" face="serif">34</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">14.7</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Group</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td>&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">&#151; EBITDA</font></td>
<td align="right"><font size="2" face="serif">213</font></td>
<td>&nbsp;</td>
<td align="right"><font size="2" face="serif">249</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(14.5</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&#151; Operating Profit</font></td>
<td align="right"><font size="2" face="serif">114</font></td>
<td>&nbsp;</td>
<td align="right"><font size="2" face="serif">157</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(27.4</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr>
<tr valign="top" bgcolor="#ffffff">
  <td colspan="2" align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Profit before Tax</font><br>
</td>
<td align="center"><div align="right"><font size="2" face="serif">92</font><br>
      </div></td>
<td>&nbsp;</td>
<td align="center"><div align="right"><font size="2" face="serif">133</font><br>
      </div></td>
<td align="right">&nbsp;</td>
<td align="center"><div align="right"><font size="2" face="serif">(30.8</font><br>
      </div></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr>
<tr valign="top" bgcolor="#ffffff">
  <td colspan="2" align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
  <td colspan="2" align="left"><font size="2" face="serif">Earnings per share</font></td>
  <td align="center"><div align="right"><font size="2" face="serif">7.6</font></div></td>
  <td align="left"><div align="left"><font size="2" face="serif">p</font></div></td>
  <td align="center"><div align="right"><font size="2" face="serif">11.2</font></div></td>
  <td align="right"><div align="left"><font size="2" face="serif">p</font></div></td>
  <td align="center"><div align="right"><font size="2" face="serif">(32.1</font></div></td>
  <td align="left"><div align="left"><font size="2" face="serif">)</font></div></td>
</tr>
<tr valign="top" bgcolor="#ffffff">
  <td colspan="2" align="left">&nbsp;</td>
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  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
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  <td align="center">&nbsp;</td>
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<tr valign="top" bgcolor="#ffffff">
  <td width="3%" align="left"><font size="1" face="serif">*</font></td>
  <td align="left"><font size="1" face="serif">Pro forma numbers. Soft Drinks
    results to 5th July 2003 (6th July 2002).</font></td>
  <td align="center"><font size="1">&nbsp;</font></td>
  <td><font size="1">&nbsp;</font></td>
  <td align="center"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="center"><font size="1">&nbsp;</font></td>
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</tr>
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<br><br>  <table border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="3%" align="left"><font size="2" face="serif">&nbsp;&#8226;</font></td
 ><td colspan="2" align="left"><font size="2" face="serif">Total Hotels operating profit down 23.6% in dollar terms, down 31.7% in sterling terms.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td width="3%" align="left"><font size="2" face="serif">&#150;</font></td> <td align="left"><font size="2" face="serif">Americas operating profit flat at $134m with our owned and leased business continuing to gain market share, and our managed and franchised business remaining robust.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td> <td align="left"><font size="2" face="serif">&#150;</font></td> <td align="left"><font size="2" face="serif">EMEA operating profit down &pound;25m to &pound;30m with the owned and leased business affected by the reduction in US visitors to the region and the depressed euro zone economy.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#150;</font></td> <td align="left"><font size="2" face="serif">Asia Pacific down $15m to $5m as a consequence of the effect of the SARS virus during the period with the InterContinental Hong Kong particularly affected.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;&nbsp;&#8226;</font></td> <td colspan="2" align="left"><font size="2" face="serif">Soft Drinks recorded another excellent performance with volumes up 3.2%, turnover up 8.1%.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;&nbsp;&#8226;</font></td> <td colspan="2" align="left"><font size="2" face="serif">Revenue generation initiatives delivering results.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;&nbsp;&#8226;</font></td> <td colspan="2" align="left"><font size="2" face="serif">Cost savings on track, currently running at $61m annualised savings.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;&nbsp;&#8226;</font></td> <td colspan="2" align="left"><font size="2" face="serif">Tight control of our costs, capital expenditure and working capital has resulted in &pound;98m operating cash inflow during the period and net debt below &pound;1bn.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;&nbsp;&#8226;</font></td> <td colspan="2" align="left"><font size="2" face="serif">&pound;227m of asset disposal proceeds generated since June 2003.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left"><font size="2" face="serif">Richard North, Chief
      Executive, InterContinental Hotels Group PLC, said:</font><br>
    <font size="2" face="serif">&#8220;Trading conditions in the first six months
    of this year have been as bad as anyone in the global hospitality industry
    can remember. Against this background we are focusing on the elements that
    we can control, namely revenue generation, reducing overhead costs and lowering
    capital intensity. We are beginning to deliver against these areas and are
    positioning ourselves for recovery when it comes.</font><br>
    <font size="2" face="serif">When we reported last May we said that we saw
    no evidence of a sustained recovery in trading and so we were cautious as
    to near term trading prospects. I have to say that little has changed since
    then to alter our view.</font><br>
<font size="2" face="serif">More specifically, in the US we believe the improvement
in RevPAR over the summer was leisure driven and we are yet to be convinced that
there has been an upturn in demand from the business traveller.</font><br>
<font size="2" face="serif">In the UK we have seen some improvement in RevPAR
particularly in the Regions. Western Europe remains uncertain and although Asia
Pacific is continuing its recovery post SARS it has yet to regain all the ground
lost.&#8221;</font></td>
</tr>
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<br><br>
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<page>

<p align="left"><font size="2" face="serif"><b>For further information, please contact:</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" width="56%"><font size="2" face="serif">Karen Whitworth, Investor Relations</font></td> <td align="right"><div align="left"><font size="2" face="serif">020 7409 8231</font></div></td> </tr> <tr valign="top"> <td align="left"><font size="2" face="serif">Jo Guano, Investor Relations</font></td> <td align="right"><div align="left"><font size="2" face="serif">020 7409 8134</font></div></td> </tr> <tr valign="top"> <td align="left"><font size="2" face="serif">Dee Cayhill/ Kathryn Holland, Corporate Affairs</font></td> <td align="right"><div align="left"><font size="2" face="serif">020 7409 8101</font></div></td> </tr> </table>
<p align="left"><font size="2" face="serif"><b>Teleconference</b></font></p>
<p align="left"><font size="2" face="serif">A teleconference, including a webcast of the teleconference presentation slides, will commence at 4.00 pm (London time) on 12th September. The conference call will conclude at approximately 4.30 pm (London time).</font></p>
<p align="left"><font size="2" face="serif">To join us for this conference call please dial the relevant number below by 4.00 pm (London time).</font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" width="40%"><font size="2" face="serif">International dial-in</font></td> <td align="left"><font size="2" face="serif">Tel: +44 (0) 1452 569 339</font></td> </tr> <tr valign="top"> <td align="left"><font size="2" face="serif">UK dial-in</font></td> <td align="left"><font size="2" face="serif">Tel: 0845 245 5300</font></td> </tr> <tr valign="top"> <td align="left"><font size="2" face="serif">USA dial-in</font></td> <td align="left"><font size="2" face="serif">Tel: 1866 629 0055</font></td> </tr> </table>
<p align="left"><font size="2" face="serif">The webcast of the teleconference presentation slides will be available on the following web address:</font></p>
<p align="left"><font size="2" face="serif"><u>www.meetingcentre.net</u> with the access code: 702133343.</font></p>
<p align="left"><font size="2" face="serif"><b>Webcast</b></font></p>
<p align="left"><font size="2" face="serif">There will be a live audio webcast of the presentation of the results at 09.30 on the web address <u>www.ihgplc.com/interimresults03</u>. A video and audio webcast of the presentation is expected to be on this website later on the day of the results and will remain on this website for the foreseeable future.</font></p>
<p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>INTERCONTINENTAL HOTELS GROUP</b></font></p>
<p align="left"><font size="2" face="serif">Following shareholder and regulatory approval, on 15 April 2003, Six Continents PLC separated into two new groups, InterContinental Hotels Group PLC (IHG) comprising the Hotels and Soft Drinks businesses, and Mitchells &amp; Butlers plc comprising the Retail and Standard Commercial Property Developments businesses, (the &#8220;Separation&#8221;).</font></p>
<p align="left"><font size="2" face="serif">This operating review summarises the performance of IHG in the six months ended 30 June 2003. These pro forma results provide information in line with our new calendar year end reporting timetable. They do not represent our formal interim accounts. The results for the period to 30 September 2003 will constitute our second formal interim results as required under the UK Listing Rules for a company extending its accounting period.</font></p>
<p align="left"><font size="2" face="serif"><b>IHG PRO FORMA SUMMARY*</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top"> <td colspan="2" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right" valign="bottom"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right" valign="bottom"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1" face="serif"><b>Six month</b></font></td>
<td align="left">&nbsp;</td> </tr>  <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="1" face="serif"><b>Group results</b></font></td>
<td align="left" width="2%"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="11%" align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="9%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="9%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="9%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2002</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="11%" align="right"><font size="1" face="serif"><b>%</b></font><font size="1"><br><font face="serif"><b>change</b></font></font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td colspan="2" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Turnover</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">505</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">538</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,043</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,080</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(3.4</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">EBITDA</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">87</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">126</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">213</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">249</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(14.5</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Operating Profit</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">37</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">77</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">114</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">157</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(27.4</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Profit before Tax</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">25</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">67</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">92</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">133</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(30.8</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Earnings per share (pence)</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.2</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">5.4</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.6</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">11.2</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(32.1</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td colspan="2" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td width="3%" align="left"><font size="1" face="serif">*</font></td>
  <td align="left"><font size="1" face="serif">excludes all exceptional items</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">IHG&#8217;s overall results on a pro forma basis have been affected by the problems facing the global travel and tourism industry. In tough trading conditions IHG&#8217;s turnover decreased by 3.4% in sterling terms on the same period last year, although Hotels turnover was up by 3.1% in US dollar terms.</font></p>
<p align="left"><font size="2" face="serif">As a result of the fundamental strength of the Hotels and Soft Drinks businesses the fall in group EBITDA was held to 14.5%. This translated into a reduction in operating profit of 27.4% while profit before tax and earnings per share fell by 30.8% and 32.1% respectively.</font></p>
<p align="left"><font size="2" face="serif">Total Hotels operating profit was down 23.6% on the prior year in dollar terms, but due to the weakness of the dollar was down 31.7% in sterling terms, to &pound;86m. Soft Drinks has, however, had another very strong six months with profits up 14.7% to &pound;39m.</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>HOTELS</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif"><b>Hotels results</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="10" align="center"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="center"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>March</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>June</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>June</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>%</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>&pound;m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>change</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Turnover:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td width="4%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Americas</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">130</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">138</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">142</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">158</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">272</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">296</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="7%" align="right"><font size="2" face="serif">(8.1</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">EMEA</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">181</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">191</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">204</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">215</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">385</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">406</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5.2</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Asia Pacific</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">30</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">33</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">21</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">35</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">51</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">68</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(25.0</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Total turnover</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">341</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">362</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">367</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">408</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">708</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">770</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(8.1</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Operating profit:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Americas</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">33</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">38</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">50</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">55</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">83</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">93</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(10.8</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">EMEA</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">12</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">22</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">18</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">33</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">30</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">55</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(45.5</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Asia Pacific</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">6</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">8</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(2</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">6</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">14</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(71.4</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(18</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(19</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(13</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(17</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(31</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(36</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">13.9</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Total operating profit</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">33</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">49</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">53</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">77</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">86</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">126</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(31.7</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="left"><font size="2" face="serif">The table above shows operating results by quarter for Hotels. The diverse nature of the regions and business models is demonstrated in our results.</font></p>
<p align="left"><font size="2" face="serif">The Americas region overall was relatively stable over the six month period with operating profit up 0.8% in dollar terms although down 10.8% in sterling terms. EMEA&#8217;s owned and leased estate continued to be severely affected by the same macro-economic factors as in the first quarter, namely the threat of and subsequent war in Iraq and the depressed euro zone economy, which has impacted both corporate profitability and leisure travel. Paris has been hit particularly hard, as has the German market. In Asia Pacific, the outbreak of SARS at the end of the first quarter severely impacted performance and profits in the region were down &pound;10m to &pound;4m.</font></p>
<p align="left"><font size="2" face="serif">Overall, the Hotels results were significantly down on the same period last year.</font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>AMERICAS</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td align="center"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>  <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif"><b>Americas results</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2002</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>%</b></font><font size="1"><br><font face="serif"><b>change</b></font></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td colspan="2" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Turnover</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">207</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">234</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">441</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">427</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.3</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Operating profit:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td width="4%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Owned &amp; Leased</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">&#151;</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">13</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">13</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">13</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">&#151;</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Managed &amp; Upscale Franchise</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">7</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">12</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">19</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">20</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5.0</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Midscale Franchised</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">45</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">57</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">102</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">100</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.0</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Total operating profit</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">52</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">82</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">134</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">133</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">0.8</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="center"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> </table>
<br><br>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="1" face="serif"><b>Americas &#150; RevPAR movement on previous year</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
  </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left" width="2%"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br>
  <font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br>
  <font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">InterContinental Owned &amp; Leased</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.8</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.9</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.2</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
  </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Holiday Inn Franchise</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(2.0</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(4.9</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(3.7</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Holiday Inn Express Franchise</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.6</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.5</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.6</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
</tr> </table>
<p align="left"><font size="2" face="serif"><i>Our owned and leased estate in the Americas has shown relative stability over the six month period compared with our owned and leased properties in the other two regions, where trading has been more volatile. RevPAR for the total owned &amp; leased InterContinental estate was up 2.2% on last year, with occupancy 4.3 percentage points higher and average daily rates 4.4% lower. Although the trading background remains challenging, our owned and leased InterContinental hotels in the Americas continue to gain market share, reflecting the ongoing benefits of our capital investment. Overall owned and leased operating profit was $13m, flat compared with the prior year six
months.</i></font></p>
<p align="left"><font size="2" face="serif">Holiday Inn Express continues to outperform its competitive set. However, Holiday Inn, with its mix more heavily weighted towards the business market than the mid-scale segment as a whole, suffered disproportionately during the period of the Iraq war under-performing the market. This is reflected in the RevPAR performance for the period, however, in July, Holiday Inn&#8217;s performance was in line with the competitive set on the back of our new marketing campaigns. Express continues to drive its system size and therefore the net movement in the period of our total midscale rooms available was an increase of 1.4%. These factors combined led to a robust performance from our Americas midscale franchise business with operating profit up $2 million
to $102 million.</font></p>
<p align="left"><font size="2" face="serif">Operating profit for the managed
    and upscale franchise business was $19m compared with $20m for the first
    half of 2002. Around 65% of the rooms available in our Americas InterContinental
    managed business are in Latin America, where the economy continues to be
    difficult, compared with the owned InterContinental estate which is centred
    on the key gateway cities of North America. It is this geographical factor
    that results in a relatively poor RevPAR performance in this business compared
    with our owned and leased estate.</font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>EUROPE, THE MIDDLE EAST AND AFRICA (EMEA)</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="center"><font size="1">&nbsp;</font></td> <td align="center"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td> </tr>  <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif"><b>EMEA results</b></font></td>
<td align="left" width="2%"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2002</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="right"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>%</b></font><font size="1"><br><font face="serif"><b>change</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Turnover</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">181</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">204</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">385</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">406</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5.2</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Operating profit:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Owned &amp; Leased</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">6</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">13</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">19</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">41</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(53.7</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Managed &amp; Franchised</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">6</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">5</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">11</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">14</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(21.4</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Total operating profit</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">12</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">18</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">30</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">55</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(45.5</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="left"><font size="2" face="serif">EMEA continues to be adversely impacted by the reduction in US visitors to the region as a result of the Iraq conflict, a reluctance to travel overseas, and the depressed euro zone economy. As a result, EMEA total operating profit fell by almost 46% in sterling terms compared with the six months to 30 June 2002.</font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif"><b>EMEA &#150; RevPAR
          movement on previous year</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td align="center"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left" width="2%"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br><font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top" bgcolor="#ffffff">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">InterContinental O&amp;L</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(6.1</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(15.5</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(11.5</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Crowne Plaza O&amp;L</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(1.6</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5.4</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(3.7</font></td>
<td align="left"><font size="2" face="serif">)%</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Holiday Inn UK London</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">0.3</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(15.7</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(8.5</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Holiday Inn UK Regions</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.2</font></td>
<td align="left"><font size="2" face="serif">%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.6</font></td>
<td align="left"><font size="2" face="serif">%</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.3</font></td>
<td align="left"><font size="2" face="serif">%</font></td> </tr> </table>
<p align="left"><font size="2" face="serif"><i>The EMEA owned and leased upscale business continues to be adversely impacted by the macro economic factors mentioned above. However, within Europe itself the situation is mixed, with distinct differences in performance between countries. While trading conditions remain challenging in France and Germany, there has been some stability in the UK regions.</i></font></p>
<p align="left"><font size="2" face="serif"><i>The Holiday Inn owned and leased estate in the UK regions saw RevPAR in the six months to 30 June 2003 increase by 1.3%. Meanwhile RevPAR in London fell 8.5% over the six month period due to the hotels bias towards the airport markets and the aforementioned reduction in US visitors. However, in terms of RevPAR growth, Holiday Inn UK continues to outperform its relative market in both London and the Regions.</i></font></p>
<p align="left"><font size="2" face="serif"><i>The macro economic factors combined with specific increases in fixed costs and higher depreciation charges reflecting the refurbishment spend to date, resulted in operating profit for the owned and leased hotels of &pound;19m compared with &pound;41m for the same period last year.</i></font></p>
<p align="left"><font size="2" face="serif">The EMEA managed and franchised estate was more resilient than the owned and leased estate with operating profit down only &pound;3m on 2002 to &pound;11m.</font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<p align="left"><font size="2" face="serif"><b>ASIA PACIFIC</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="right">&nbsp;</td>
<td align="right">&nbsp;</td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr>
  <tr valign="top"> <td align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>Asia Pacific results</b></font></td>
<td width="2%" align="left" bgcolor="#ffffff">&nbsp;</td>
<td width="1%" align="right" bgcolor="#ffffff">&nbsp;</td>
<td width="8%" align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>March</b></font><font size="1"><br>
  <font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td width="2%" align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="1%" align="right" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>June</b></font><font size="1"><br>
  <font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td width="2%" align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="1%" align="right" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>June</b></font><font size="1"><br>
  <font face="serif"><b>2003</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td width="2%" align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="1%" align="right" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>June</b></font><font size="1"><br>
  <font face="serif"><b>2002</b></font><br><font face="serif"><b>$m</b></font></font></td>
<td width="2%" align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="1%" align="right" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>%</b></font><font size="1"><br>
  <font face="serif"><b>change</b></font></font></td>
<td width="2%" align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr valign="top"> <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Turnover</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">48</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">34</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">82</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">97</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(15.5</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr> <tr valign="top"> <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="1" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="1" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="1" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="1" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr> <tr valign="top"> <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Operating profit</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">8</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(3</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">5</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">20</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(75.0</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top"> <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="2" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="2" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="2" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">
  <hr size="2" noshade>
</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff">&nbsp;</td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
</tr> </table>
<p align="left"><font size="2" face="serif"><i>The sharply reduced operating profit performance was almost entirely due to the effect of SARS during the period. At the InterContinental Hong Kong occupancy dropped in the quarter to June to below 10% from nearly 60% in the previous quarter, while rate was slightly down. SARS now appears to have been contained and the World Health Organization has declared countries in the Asia region free from the virus. China has virtually fully recovered and occupancy at the InterContinental Hong Kong in August was nearly 50%, a strong improvement from the levels of occupancy at the height of the epidemic.</i></font></p>
<p align="left"><font size="2" face="serif">Overall, Asia Pacific operating profit was $5m, compared with $20m for the six months to June 2002.</font></p>
<p align="left"><font size="2" face="serif"><b>Other</b></font></p>
<p align="left"><font size="2" face="serif">The Other segment, which includes central overheads, marketing costs and goodwill amortisation less dividends received from FelCor and other income items, was $49m compared with $50m in 2002. Dividends received from FelCor were $1m compared to $3m in the prior year. Also, there were no significant liquidated damages in the six months to 30 June 2003, against $2m in the same period last year. A continuing focus on driving cost from the business has resulted in central overheads and marketing spend down $5m on the same period last year.</font></p>
<p align="left"><font size="2" face="serif"><b>SOFT DRINKS</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Three months to</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td colspan="4" align="right"><font size="1" face="serif"><b>Six months to</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
  </tr>  <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif"><b>Soft Drinks results</b></font></td>
<td align="left" width="2%"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>March</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2003</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>June</b></font><font size="1"><br><font face="serif"><b>2002</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>%</b></font><font size="1"><br><font face="serif"><b>change</b></font></font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td height="20" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td height="20" align="left"><font size="2" face="serif">Turnover</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">164</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">171</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">335</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">310</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">8.1</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="1" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="1" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="1" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="1" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;
  </font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">Operating profit</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">8</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">31</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">39</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">34</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">14.7</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
  <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="2" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="2" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="2" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right"><font size="2" face="serif">
    <hr size="2" noshade>
  </font></td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&nbsp;
  </font></td>
  <td align="left">&nbsp;</td>
</tr>
</table>
<p align="left"><font size="2" face="serif">The Soft Drinks business continues to produce excellent results. Both volumes and profit were up on the same period last year. Sales volumes were 3.2% higher, with significant contributions from Robinsons, Fruit Shoot and Britvic J20. Overall, turnover rose 8.1% to &pound;335m as a consequence of the volume increase and a further growth in average realised price due to a higher mix of premium priced products.</font></p>
<p align="left"><font size="2" face="serif">Costs were well controlled and operating margins grew, resulting in total operating profit up 14.7% to &pound;39m.</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="left"><font size="2" face="serif"><b>FINANCE</b></font></p>
<p align="left"><font size="2" face="serif">Operating cash inflows before major operating exceptionals for the six months to 30 June 2003 was &pound;98m after net capital expenditure of &pound;140m. In these difficult times, IHG continues to focus on improving the operating cashflow of the group, with rigorous control of working capital and capital expenditure. We now expect Hotels capital expenditure for the calendar year 2003 to be &pound;350m, slightly lower than our previous guidance given in May.</font></p>
<p align="left"><font size="2" face="serif">IHG retains a robust balance sheet with over &pound;4.4bn of tangible assets and net debt of &pound;942m. The disposal proceeds of the 16 Staybridge Suites, announced in July, and of the InterContinental May Fair, announced in August of this year, totalling &pound;227m, are not included in the above results. Primarily as a result of these disposals and tight cash management, we now expect our net debt at the year end to be below &pound;800m, lower than our previous guidance.</font></p>
<p align="left"><font size="2" face="serif"><b>INVESTOR INFORMATION</b></font></p>
<p align="left"><font size="2" face="serif">As previously communicated, the Directors of IHG intend to recommend that an interim dividend and a final dividend for IHG for 2003, together totalling 13.5 pence per Ordinary Share, be declared. The Directors therefore are declaring an interim dividend today of 4.05 pence per share payable on 14th October 2003. It is intended to pay the interim dividend to ADR holders on 23rd October 2003. The proposed final dividend for the year totalling 9.45 pence per share is expected to be paid in June 2004.</font></p>
<p align="left"><font size="2" face="serif">The Directors intend to establish a progressive dividend policy that is appropriate to the strategies for the Group and will seek to grow dividends in real terms from the base of 13.5 pence and build cover over time as the hotel cycle improves.</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p>
<table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top"> <td colspan="2" align="left"><font size="2" face="serif"><b>NOTES TO PROFORMA FINANCIAL INFORMATION</b></font></td>
</tr>
  <tr valign="top">
    <td colspan="2" align="left">&nbsp;</td>
  </tr>
  <tr valign="top"> <td colspan="2" align="left"><font size="2" face="serif">Following shareholder and regulatory approval, on 15 April 2003, Six Continents PLC separated into two new groups, InterContinental Hotels Group PLC comprising the Hotels and Soft Drinks businesses, and Mitchells &amp; Butlers plc comprising the Retail and Standard Commercial Property Developments businesses. As a result of the Separation, Six Continents PLC, the company, became part of IHG.</font><br><font size="2" face="serif">The pro forma financial statements for
the six months to 30 June comprises the results of those companies that form IHG following the separation, as if IHG had been in existence since 1 October 2001. The information is provided as guidance only; it is not audited and, as pro forma information, it does not give a full picture of the financial position of the Group. The key assumptions used in the preparation of the information are as follows:</font></td> </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top"> <td align="left" width="3%"><font size="2" face="serif"><b>i</b></font></td>
  <td align="left"><font size="2" face="serif">The pro forma information has
      been prepared using accounting policies consistent with those
        used in the historic Six Continents PLC interim and year end financial
    statements.</font></td>
  </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif"><b>ii</b></font></td>
<td align="left"><font size="2" face="serif">Pro forma interest has been calculated
    to reflect the post Separation capital structure of
    the Group as if it had been in place at 1 October 2001, using interest rate
    differentials applicable under the post separation borrowing agreements and
    excluding facility fee amortisation. Dividend payments have been assumed
    at the expected ongoing level.</font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif"><b>iii</b></font></td> <td align="left"><font size="2" face="serif">Pro forma tax is based on the estimated effective rate of tax for IHG applied to pro forma profit before taxation.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif"><b>iv</b></font></td> <td align="left"><font size="2" face="serif">Adjustments have been made, where appropriate, to exclude any arrangements with the demerged Mitchells &amp; Butlers Group.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif"><b>v</b></font></td> <td align="left"><font size="2" face="serif">Pro forma earnings per share is based on pro forma profit available for shareholders divided by 734m shares, being the issued share capital of IHG on separation.</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top"> <td align="left"><font size="2" face="serif"><b>vi</b></font></td> <td align="left"><font size="2" face="serif">The pro forma Profit and Loss account excludes all exceptional items as being non-recurring.</font></td> </tr>
<tr valign="top">
  <td height="20" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif"><b>vii</b></font></td> <td align="left"><font size="2" face="serif">Operating cash flow excludes cash flows relating to exceptional items.</font></td> </tr> </table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>INTERCONTINENTAL HOTELS GROUP PLC<br>
</b></font><font size="2" face="serif"><b>UNAUDITED PROFORMA PROFIT AND LOSS ACCOUNT<br>
</b></font><font size="2" face="serif"><b>For the six months ended 30 June 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#ffffff"> <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
      <font face="serif"><b>6 months</b></font></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>6 months</b></font></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Total</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Total</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Turnover (note 2)</b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif"><b>1,043</b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif"><b>1,080</b></font></td>
<td width="1%" align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">Costs and overheads, less other income</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(929</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(923</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade>
</td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Operating profit on ordinary activities before interest (note 3)</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>114</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>157</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Net interest payable &amp; similar charges</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(22</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(24</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Profit on ordinary activities before taxation</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>92</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>133</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">Tax on profit on ordinary activities</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(23</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(38</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Profit on ordinary activities after taxation</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>69</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>95</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">Minority equity interests</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(13</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(13</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Profit available for shareholders</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>56</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>82</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="bottom" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif"><b>Pro Forma Earnings per ordinary share</b></font><br>
  <font size="2" face="serif"><b>(note 4):</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>7.6</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>11.2</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="left"><font size="2" face="serif"><br></font></p>
<p>
<p align="left"><font size="2" face="serif"><b>UNAUDITED PROFORMA CASH FLOW STATEMENT<br>
</b></font><font size="2" face="serif"><b>For the six months ended 30 June 2003</b></font></p>
<table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td width="4%" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td> <td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>6 months</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td> </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Operating profit</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>114</b></font></td>
<td align="left">&nbsp;</td>
  </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Depreciation and amortisation</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">99</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Earnings before interest, taxation, depreciation and amortisation</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>213</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Decrease in stocks</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Increase in debtors</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(16</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Increase in creditors</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">45</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Provisions expended</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Operating activities</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>238</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Net capital expenditure</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(140</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Operating cash flow</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>98</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>INTERCONTINENTAL HOTELS GROUP PLC<br>
</b></font><font size="2" face="serif"><b>UNAUDITED GROUP BALANCE SHEET<br>
</b></font><font size="2" face="serif"><b>30 June 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="1" face="serif"><b>2003</b></font><br><font size="1" face="serif"><b>30 June</b></font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top"> <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr>  <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Intangible assets</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">157</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Tangible assets</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4,234</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Investments</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">233</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Fixed assets</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>4,624</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Stocks</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">44</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Debtors</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">484</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Investments</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">33</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Cash at bank and in hand</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">80</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Current assets</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>641</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Creditors &#151; amounts falling due within one year:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td width="7%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Overdrafts</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(16</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other borrowings</font></td> <td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(25</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other creditors</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(979</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Net current liabilities</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(379</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Total assets less current liabilities</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>4,245</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Creditors &#151; amounts falling due after one year:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Borrowings</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(1,014</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other creditors</font></td> <td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(142</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">Provisions for liabilities and charges:</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Deferred taxation</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(313</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other provisions</font></td> <td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(64</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Minority interests</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(163</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Net assets (note 5)</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>2,549</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif"><b>Capital and reserves</b></font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Equity share capital</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">735</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Share premium account</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Revaluation reserve</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">290</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">Merger reserve</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,164</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif">Profit and loss account</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">358</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td colspan="2" align="left"><font size="2" face="serif"><b>Equity shareholders&#8217; funds</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>2,549</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif"><b>NOTES TO THE PRO FORMA INTERIM FINANCIAL STATEMENTS</b></font></p>  <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top" bgcolor="#ffffff"> <td width="3%"><font size="2" face="serif"><b>1.</b></font></td>
<td align="left"><font size="2" face="serif"><b>Exchange rates</b></font></td>
<td width="2%" align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">The results of overseas operations have been translated into sterling at the weighted average rates of exchange for the period. In the case of the US dollar, the translation rate is &pound;1=$1.60 (&pound;1=$1.44 June 2002).</font><br><font size="2" face="serif">Foreign currency denominated assets and liabilities have been translated into sterling at the rates of exchange on the last day of the period. In the case of the US dollar, the translation rate is &pound;1=$1.65.</font></td>
<td align="left">&nbsp;</td> </tr> </table>
<p>
<table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td><font size="2" face="serif"><b>2.</b></font></td>
<td colspan="2" align="left"><font size="2" face="serif"><b>Turnover</b></font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td colspan="4" align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>6
        months</b></font></font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;<font face="serif"><b>*</b></font></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>6
        months</b></font></font></td>
<td align="left" valign="bottom"><font size="1"><font face="serif"><b>*</b></font>&nbsp;</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td width="3%" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>$m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>$m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">Hotels**</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td width="5%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Americas</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">441</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">272</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">427</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">296</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">EMEA</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">622</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">385</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">587</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">406</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Asia Pacific</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">82</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">51</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">97</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">68</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,145</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">708</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,111</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">770</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">Soft Drinks</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">335</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">310</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>1,043</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>1,080</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr>
<tr valign="top" bgcolor="#ffffff">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
</table>

<table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top"> <td align="left" width="3%"><font size="1" face="serif">*</font></td> <td align="left"><font size="1" face="serif">Other than for Soft Drinks which reflect the 28 weeks ended 5 July 2003 (28 weeks ended 6 July 2002).</font></td> </tr> <tr valign="top"> <td align="left"><font size="1" face="serif">**</font></td> <td align="left"><font size="1" face="serif">The dollar amounts shown are translated at the weighted average rate of exchange (see note 1).</font></td> </tr> </table>
<p>&nbsp;</p>
<table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td><font size="2" face="serif"><b>3.</b></font></td>
<td colspan="2" align="left"><font size="2" face="serif"><b>Operating profit</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>6
        months</b></font></font></td>
<td align="left" valign="bottom"><font size="1"><font face="serif"><b>*</b></font>&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td colspan="4" align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>6
        months</b></font></font></td>
<td align="left" valign="bottom"><font size="1"><font face="serif"><b>*</b></font>&nbsp;</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>$m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>$m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> <td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td> </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">Hotels**</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td width="5%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Americas</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">134</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">83</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">133</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">93</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">EMEA</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">49</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">30</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">79</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">55</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Asia Pacific</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">5</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">20</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">14</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(49</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(31</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(50</font></td>
<td align="left"><font size="2" face="serif">)</font></td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(36</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">139</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">86</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">182</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">126</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">Soft Drinks</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">39</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">34</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">Other activities</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(11</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(3</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif"><b>Operating profit</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>114</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>157</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left">&nbsp;</td>
  <td colspan="2" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="1" face="serif">*</font></td>
<td colspan="14" align="left"><font size="1" face="serif">Other than for Soft
    Drinks which reflect the 28 weeks ended 5 July 2003 (28 weeks ended 6 July
    2002).</font></td>
<td align="left"><font size="1">&nbsp;</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="1" face="serif">**</font></td>
<td colspan="14" align="left"><font size="1" face="serif">The dollar amounts shown are translated at the weighted average rate of exchange (see note 1).</font></td>
<td align="left"><font size="1">&nbsp;</font></td> </tr> </table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<br>
<table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr valign="top" bgcolor="#ffffff"> <td width="3%"><font size="2" face="serif"><b>4.</b></font></td>
<td align="left"><font size="2" face="serif"><b>Pro forma Earnings per share</b></font></td>
<td width="2%" align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Pro forma basic earnings per ordinary share is calculated by dividing the profit available for shareholders of &pound;56m (&pound;82m June 2002) by 734 million shares, being the issued share capital of IHG on separation.</font></td>
<td align="left">&nbsp;</td> </tr> </table>
<br><br>  <table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top" bgcolor="#ffffff"> <td width="3%"><font size="2" face="serif"><b>5.</b></font></td>
<td align="left"><font size="2" face="serif"><b>Net assets</b></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td> <td width="1%" align="right"><font size="1">&nbsp;</font></td>
<td width="8%" align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>30 June</b></font><br><font face="serif"><b>&pound;m</b></font></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td> </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Hotels</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4,109</font></td>
<td align="left">&nbsp;</td>
  </tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Soft Drinks</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">268</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other activities</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">49</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4,426</font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Net debt</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(942</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr> <tr valign="top" bgcolor="#ffffff"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Other net non-operating liabilities</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(935</font></td>
<td align="left"><font size="2" face="serif">)</font></td> </tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="1" noshade></td>
<td align="left">&nbsp;</td> </tr> <tr valign="top" bgcolor="#eeeeee"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>2,549</b></font></td>
<td align="left">&nbsp;</td>
</tr> <tr valign="top" bgcolor="#FFFFFF"> <td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td> <td align="right">&nbsp;</td>
<td align="right"><hr size="2" noshade></td>
<td align="left">&nbsp;</td> </tr> </table>
<p align="left"><font size="2" face="serif"><b><u>Ends</u></b></font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<p align="left"><font size="2" face="serif">Pursuant to the requirements of the
    Securities Exchange Act of 1934, the registrant has duly caused this report
    to be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>
<table border="0" width="100%" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td align="left" width="39%"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" width="8%"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" width="52%"><font size="2" face="serif"><b>InterContinental
          Hotels Group PLC</b></font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">(Registrant)</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">By:</font></td>
    <td align="left"><font size="2" face="serif"><u>/s/ C. Springett </u></font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Name:</font></td>
    <td align="left"><font size="2" face="serif">C. SPRINGETT</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Title:</font></td>
    <td align="left"><font size="2" face="serif">HEAD OF SECRETARIAT</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="serif">Date: </font></td>
    <td align="left" valign="bottom"><font size="2" face="serif">12<sup>th</sup> September
        2003</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
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