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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001021231-04-000157.txt : 20040312
<SEC-HEADER>0001021231-04-000157.hdr.sgml : 20040312
<ACCEPTANCE-DATETIME>20040312063022
ACCESSION NUMBER:		0001021231-04-000157
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040312
FILED AS OF DATE:		20040312

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:		04664103

	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>b742577-6k.htm
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="4" valign="bottom" bgcolor="#000000"></td>
  </tr>
  <tr>
    <td height="2" valign="top"></td>
  </tr>
  <tr>
    <td height="1" valign="top" bgcolor="#000000"></td>
  </tr>
</table>
<p align="center"><b><font size="4" face="serif">
SECURITIES AND EXCHANGE COMMISSION
</font></b><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 March 2004</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">67 Alma Road, Windsor, Berkshire,
    SL4 3HD, England <br>
(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="emptybox.gif" width="12" height="12">&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="emptybox.gif" width="12" height="12"></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>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td height="1" valign="top" bgcolor="#000000"></td>
  </tr>
  <tr>
    <td height="2" valign="top" bgcolor="#FFFFFF"></td>
  </tr>
  <tr>
    <td height="4" valign="bottom" bgcolor="#000000"></td>
  </tr>
</table>
<div style="page-break-before:always">
  <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="bottom">
      <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 width="45%" align="left"><font size="2" face="serif"><b>InterContinental
            Hotels Group PLC</b></font></td>
    </tr>
    <tr valign="bottom">
      <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>
    </tr>
    <tr valign="bottom">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <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>
    </tr>
    <tr valign="bottom">
      <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>
    </tr>
    <tr valign="bottom">
      <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>
    </tr>
    <tr valign="bottom">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td align="left"><font size="2" face="serif">&nbsp;</font></td>
      <td align="left"><font size="2" face="serif">Date: </font></td>
      <td align="left"><font size="2" face="serif">12 March 2004</font></td>
    </tr>
    <tr valign="bottom">
      <td align="left">&nbsp;</td>
      <td align="left">&nbsp;</td>
      <td align="left">&nbsp;</td>
    </tr>
  </table>
    <hr noshade align="center" width="100%" size="2">
  <div style="page-break-before:always">
  <page>
  <p align="center"><font size="2" face="serif">EXHIBIT INDEX</font></p>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td width="12%"><font size="2" face="serif">Exhibit Number</font></td>
      <td><font size="2" face="serif">Exhibit Description</font></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><a href="b742577ex99-1.htm"><font size="2" face="serif">99.1</font></a></td>
      <td><a href="b742577ex99-1.htm"><font size="2" face="serif"> InterContinental
            Hotels Group PLC Results to 31 December 2003 &#8211; release
          dated 11 March 2004</font></a></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><a href="b742577ex99-2.htm"><font size="2" face="serif">99.2</font></a></td>
      <td><a href="b742577ex99-2.htm"><font size="2" face="serif">Britannia Soft
            Drinks Signing Agreements &#8211; release dated
        11 March 2004</font></a></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
  </table>

</div>
<hr noshade align="center" width="100%" size="2">
</div></body>
</html>

</TEXT>
</DOCUMENT>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>b742577ex99-1.htm
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">
 <p align="right"><font size="2" face="serif"><b>Exhibit 99.1</b></font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p><font size="2" face="serif"><b>11 March 2004</b></font></p>
<p align="center"><font size="2" face="serif"><b>InterContinental Hotels Group PLC<br>
</b></font><font size="2" face="serif"><b>Results to 31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr>
  <td colspan="12" align="left" valign="top" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Unaudited Pro-forma</b></font></td>
  <td align="right" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
  <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Audited</b></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>12 months to<br>
    31 Dec 2003</b></font><font size="1"><br>
    <font face="serif"><b>&pound;m</b></font></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>12 months to<br>
    31 Dec 2002</b></font><font size="1"><br>
    <font face="serif"><b>&pound;m</b></font></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>%</b></font><font size="1"><br>
        <font face="serif"><b>change<br>
        <br>
    </b></font></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>15 months to<br>
    31 Dec 2003</b></font><font size="1"><br>
    <font face="serif"><b>&pound;m</b></font></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>12 months to<br>
    30 Sept 2002</b></font><font size="1"><br>
    <font face="serif"><b>&pound;m</b></font></font></td>
  <td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Hotels</b></font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td width="3%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Turnover</font></td>
<td width="2%" align="right" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,487</font></td>
<td width="2%" align="right" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,538</font></td>
<td width="2%" align="right" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(3.3</font></td>
<td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)%</font></td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,870</font></td>
<td width="2%" align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,532</font></td>
<td width="2%" align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">EBITDA</font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">357</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">385</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(7.3</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)%</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">446</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">405</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Operating profit </font></td>
<td align="right" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">200</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">239</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(16.3</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)%</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">251</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">266</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Soft Drinks</b></font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Turnover</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">674</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">611</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">10.3</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right"><font size="2" face="serif">820</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">602</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">EBITDA</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">124</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">115</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">7.8</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right"><font size="2" face="serif">149</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">109</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Operating profit</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">83</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">68</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">22.1</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right"><font size="2" face="serif">95</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">63</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td colspan="2" align="left"><font size="2" face="serif"><b>Group</b></font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Turnover</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">2,161</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">2,149</font></td>
<td align="right"><font size="2">&nbsp;</font></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"><font size="2" face="serif">3,483</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">3,615</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">EBITDA</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">481</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">500</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(3.8</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right"><font size="2" face="serif">786</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">889</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Operating profit </font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">283</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">307</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(7.8</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right"><font size="2" face="serif">483</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">618</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Exceptional Items</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(51</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(77</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-operating</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(349</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">53</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2" face="serif">Profit before tax</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">244</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">258</font></td>
<td align="right"><font size="2">&nbsp;</font></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"><font size="2" face="serif">36</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">534</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif">Earnings per share &#150; Basic (pence)</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">2.6</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">62.5</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr valign="middle">
<td colspan="2" align="left"><font size="2" face="serif">Earnings per share &#150; Adjusted (pence)</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">20.8</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">21.9</font></td>
<td align="right"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">(5.0</font></td>
<td align="left"><font size="2" face="serif">)%</font></td>
<td align="right"><font size="2" face="serif">48.4</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">51.4</font></td>
<td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="11" align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="11" align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">NB. The unaudited pro forma results and audited operating profit and EBITDA are shown before exceptional items. The audited results include the results of Mitchells &amp; Butlers until Separation. </font></td>
<td align="right" valign="top" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
</table>
<br>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td width="3%" align="left"><font size="2">&#8226;</font></td>
<td colspan="5" align="left"><font size="2" face="serif">Hotels pro forma operating profit for the twelve months to 31 December 2003 down 16% to &pound;200m (down 11% at constant currency):</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2">&nbsp;</font></td>
<td width="3%" align="left"><p><font size="2" face="serif">&#151;</font></p></td>
<td colspan="4" align="left"><font size="2" face="serif">Americas flat for the twelve months to 31 December 2003 at $262m reflecting the resilience of our midscale franchise business.</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td colspan="4" align="left"><font size="2" face="serif">EMEA down 23% to &pound;92m. Challenging trading conditions in continental Europe, particularly France and Germany mitigated by improving trends in the Holiday Inn UK estate in the second half. </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#151;</font></td>
<td colspan="4" align="left"><font size="2" face="serif">Asia Pacific down 51% to $19m for the twelve months to 31 December 2003 primarily as a consequence of the effect of SARS. </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left"><font size="2">&nbsp;</font></td>
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  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2">&#8226;</font></td>
<td colspan="5" align="left"><font size="2" face="serif">Total Hotels pro forma operating profit improved in third and fourth quarters with fourth quarter up 11% to &pound;49m.</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left"><font size="2">&nbsp;</font></td>
  <td colspan="5" align="left"><font size="2">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2">&#8226;</font></td>
<td colspan="5" align="left"><font size="2" face="serif">Continued excellent performance for Soft Drinks with pro forma operating profit up 22%, for the 12 months to 31 December 2003 against prior year, to &pound;83m.</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left"><font size="2">&nbsp;</font></td>
  <td colspan="5" align="left"><font size="2">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2">&#8226;</font></td>
<td colspan="5" align="left"><font size="2" face="serif">Overhead cost reductions in 2003 of $76m against 2003 budget; annualised savings of $110m exceeding target of $75m.</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
  <td align="left"><font size="2">&nbsp;</font></td>
  <td colspan="5" align="left"><font size="2">&nbsp;</font></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2">&#8226;</font></td>
<td colspan="5" align="left"><font size="2" face="serif">Significant disposals made in 2003 at or above book value with proceeds of &pound;254m for the 12 months to 31 December 2003. Further &pound;20m of disposals already completed in 2004.</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="3%"><font size="2">&#8226;</font></td>
<td align="left"><font size="2" face="serif">Continued strong cash and capital control. Net debt reduced to &pound;569m at 31 December 2003.</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">&#8226;</font></td>
<td align="left"><font size="2" face="serif">&pound;250m share buy back programme announced.</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">&#8226;</font></td>
<td align="left"><font size="2" face="serif">Disposal programme to involve further sale of assets with net book value of between &pound;800 million and &pound;1 billion subject to no significant adverse changes in market conditions.</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">&#8226;</font></td>
<td align="left"><font size="2" face="serif">Soft Drinks exclusive bottling agreement with Pepsi renewed. Opportunity for an initial public offering from 2005 (see separate announcement).</font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">Commenting on the results, David
    Webster, chairman, InterContinental Hotels Group PLC, said:</font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&#8220;Following the successful
      Separation of the Six Continents&#8217; businesses in April 2003, InterContinental
      has established itself as a powerful independent hotels company. In the
      fifteen months to 31 December 2003 we faced very testing trading conditions
    but our results were sound.</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">&nbsp;</font></td>
<td align="left"><p><font size="2" face="serif">I am delighted and excited to
      be part of an organisation with such a formidable portfolio of brands and
      an unmatched presence in world markets and I am confident that the company
      is well positioned to grow strongly as more stable conditions return.&#8221;</font></p>
  </td>
</tr>
<tr valign="top">
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</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">Commenting on the results, Richard
    North, chief executive, InterContinental Hotels Group PLC, said:</font><font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">&#8220;The fifteen months to 31
      December 2003 was probably the most difficult period experienced in the
    hotel industry in living memory. </font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">In many ways, however, we have
      had a great year. Last spring we set out in our listing particulars a series
      of actions designed to improve the overall performance of the company.
      We are delivering on those promises. We have reorganised the company, greatly
      strengthened management, radically reduced costs beating our published
      targets, significantly cut capital expenditure, started an asset disposal
    programme and today we are now announcing a share buy back.</font></td>
</tr>
<tr valign="top">
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</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">Commenting on current trading,
    he continued:</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">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&#8220;We have for some time been
    cautious when commenting on current trading. However, trading over the last
    six months now gives us some confidence to say that we believe conditions
    are improving steadily in both the Americas and the UK. Furthermore, trading
    in Asia Pacific has recovered substantially since the SARS scare. However,
    continental Europe remains difficult and this is being exacerbated by the
    weakness of the US dollar.&#8221;</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif"><b>For further information, please contact:</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr bgcolor="#FFFFFF">
<td width="26%" align="left"><font size="2" face="serif">Karen Whitworth, Investor Relations</font></td>
<td align="left" width="2%">&nbsp;</td>
<td align="left"><font size="2" face="serif">Office: 01753 410177</font><br>
  <font size="2" face="serif">Mobile: 07808 095638</font></td>
<td width="2%" align="left" valign="top">&nbsp;</td>
</tr>
<tr bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Dee Cayhill, Corporate Affairs</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">01753 410423</font></td>
<td align="left" valign="top">&nbsp;</td>
</tr>
<tr bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Kathryn Holland, Corporate Affairs</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">01753 410425</font></td>
<td align="left" valign="top">&nbsp;</td>
</tr>
</table>
<br>
<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>Teleconference</b></font></p>
<p align="left"><font size="2" face="serif">A teleconference, including a web cast of the teleconference presentation slides, will commence at 4.00 pm (London time) on 11 March.  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 width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td width="26%" align="left"><font size="2" face="serif" align="left">International
    dial-in</font></td>
    <td align="left" width="2%">&nbsp;</td>
    <td align="left"><font size="2" face="serif" align="left">Tel:&nbsp;&nbsp;+44
    (0) 1452 562 716</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif" align="left">UK dial-in</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif" align="left">Tel:&nbsp;&nbsp;0800
    073 8967</font></td>
    <td align="left">&nbsp;</td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Web cast </b></font></p>
<p align="left"><font size="2" face="serif">There will be a live audio web cast of the presentation of the results on the web address <u>www.ihgplc.com</u> . A video and audio web cast of the presentation is expected to be on this website later on today and will remain on this website for the foreseeable future.</font></p>
<p align="left"><font size="2" face="serif"><b>Investor Information</b></font></p>
<p align="left"><font size="2" face="serif">An Interim dividend of 4.05 pence per share was paid in October 2003. The Board proposes, subject to shareholder approval at the AGM on 1 June 2004, to pay a final dividend of 9.45 pence per share on 7 June 2004. The ex dividend date for this payment will be 24 March 2004 and the record date 26 March 2004.</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>Current Trading &#150; RevPAR</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
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</tr>
<tr valign="top" bgcolor="#000000">
<td align="left" valign="middle"><font color="#FFFFFF" size="2" face="serif"><b>RevPAR
      GROWTH CY03 &#8216;vs&#8217; CY02</b></font></td>
<td align="left">&nbsp;</td>
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<td align="right"><font color="#FFFFFF" size="2" face="serif"><b>CY04 &#8216;vs&#8217; CY03</b></font></td>
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</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="1" face="serif"><b>Jul-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Aug-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Sep-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Oct-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Nov-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Dec-03</b></font></td>
<td align="right"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>Jan-04</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif"><b><u>AMERICAS</u></b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">InterContinental O&amp;L</font></td>
<td align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">9.5%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">3.5%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">2.0%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">1.0%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">9.3%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">5.5%</font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">4.5%</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Crowne Plaza Brands</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.2%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(0.2%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">2.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.9%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">0.5%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.6%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">5.8%</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Holiday Inn Brands</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.1%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(0.7%</font></td>
<td align="left"><font size="2" face="serif">)</font></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"><font size="2" face="serif">0.7</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.1%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.7%</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Express Brands</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.4%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.6%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.7%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">4.7%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.9%</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif"><b><u>EMEA</u></b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">InterContinental O&amp;L</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(6.0%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(2.5%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(3.1</font></td>
<td align="left"><font size="2" face="serif">%)</font></td>
<td align="right"><font size="2" face="serif">(4.5%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(3.4%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">0.1%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(9.2%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">HIUK Regions</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">1.9%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.0%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">11.1</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right"><font size="2" face="serif">6.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">9.6%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.1%</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">HIUK London</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(7.0%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">0.6%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">9.9</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
<td align="right"><font size="2" face="serif">6.9%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.8%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">12.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.5%</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr valign="top" bgcolor="#cccccc">
  <td colspan="10" align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left"></td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  </tr>
<tr valign="top" bgcolor="#cccccc">
<td colspan="10" align="left" valign="middle"><font color="#FFFFFF" size="2" face="serif"><b>RevPAR GROWTH CY03 &#8216;vs&#8217; CY01</b></font></td>
<td align="left">&nbsp;</td>
<td align="left"></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#cccccc">
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  </tr>
<tr valign="bottom" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Jul-03</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Aug-03</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Sep-03</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Oct-03</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Nov-03</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Dec-03</b></font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif"><b><u>AMERICAS</u></b></font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">InterContinental O&amp;L</font></td>
<td width="8%" align="right"><font size="2" face="serif">(6.0%</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td>
<td width="8%" align="right"><font size="2" face="serif">(5.9%</font></td>
<td width="2%" align="left"><font size="2" face="serif">)</font></td>
<td width="8%" align="right"><font size="2" face="serif">45.1%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">20.9%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">28.6%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">17.0%</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="left">&nbsp;</td>
<td width="2%" align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Crowne Plaza Brands</font></td>
<td align="right"><font size="2" face="serif">(11.2%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(14.5%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">8.6%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">12.1%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.0%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">9.3%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Holiday Inn Brands</font></td>
<td align="right"><font size="2" face="serif">(1.1%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(4.3%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">4.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.0%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">2.2%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">4.3%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Express Brands</font></td>
<td align="right"><font size="2" face="serif">5.0%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.7%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">8.5%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">6.7%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">10.4%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif"><b><u>EMEA</u></b></font></td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">InterContinental O&amp;L</font></td>
<td align="right"><font size="2" face="serif">(5.9%</font></td>
<td align="left"><font size="2" face="serif">)</font></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"><font size="2" face="serif">10.4%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">22.9%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.4%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3.0%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">HIUK Regions</font></td>
<td align="right"><font size="2" face="serif">5.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">4.8%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.8%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">16.3%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">5.8%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">7.9%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="middle" bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">HIUK London</font></td>
<td align="right"><font size="2" face="serif">(11.0%</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(9.2%</font></td>
<td align="left"><font size="2">)</font></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"><font size="2" face="serif">22.0%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">26.7%</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">30.7%</font></td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="left"><font size="2" face="serif">All data is disclosed at comparable Exchange Rates</font></p>
<p align="left"><font size="2" face="serif">EMEA InterContinental O&amp;L has been restated to exclude the InterContinental May Fair from comparatives </font></p>
<hr noshade align="center" width="100%" size="2"><div style="page-break-before:always"></div>
<page><p><font size="2" face="serif"><b>Chief Executive&#8217;s Review</b></font></p>
<p align="left"><font size="2" face="serif">Following the announcement in October
    2002 of the Separation of Six Continents we initiated action in four key
    areas in order to improve radically our operating performance;</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="3%"><font size="2" face="serif">&#149;</font></td>
    <td> <font size="2" face="serif">redesigning the organisation to align it
        behind the strategic priorities and speed up decision making</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="3%"><font size="2" face="serif">&#149;</font></td>
    <td> <font size="2" face="serif">changing the management to ensure the right
        people are in the right jobs</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="3%"><font size="2" face="serif">&#149;</font></td>
    <td> <font size="2" face="serif">reducing the cost base through eliminating
        unnecessary work and streamlining processes and</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="3%"><font size="2" face="serif">&#149;</font></td>
    <td> <font size="2" face="serif">optimising capital deployment through a
        rigorous hotel by hotel review to determine appropriate levels of ownership
        and capital expenditure.</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">This change programme coincided with
    probably the most difficult period experienced by the hotel industry in living
    memory. Sluggish economies around the world, the threat of war in Iraq followed
    by war, the advent of Severe Acute Respiratory Syndrome (&#8220;SARS&#8221;)
    and the reluctance of Americans to travel particularly to France, all combined
    to make it so.</font></p>
<p align="left"><font size="2" face="serif">Despite these difficult trading conditions,
    I am delighted to report that we have made real progress on all fronts. As
    a result, we have built the foundation of a solid and sustainable recovery.</font></p>
<p align="left"><font size="2" face="serif"><b>Organisation redesign</b></font></p>
<p align="left"><font size="2" face="serif">The redesign of the organisation
    was completed by the end of January 2003 and has now been substantially implemented.
    What remains to be done will be completed, as planned, by the end of 2004.</font></p>
<p align="left"><font size="2" face="serif"><b>Strengthening management</b></font></p>
<p align="left"><font size="2" face="serif">Once the new organisation structure
    was identified we immediately began to strengthen the management team throughout
    the world. The most senior new appointments were Richard Hartman (Europe,
    Middle East and Africa), Patrick Imbardelli (Asia Pacific), Peter Gowers
    (Global Brand Services) and Jim Claunch (Central Shared Services).</font></p>
<p align="left"><font size="2" face="serif">Steve Porter (the Americas), Richard
    Hartman and Patrick Imbardelli, our three regional presidents, have some
    80 years of experience in the hotel industry. Each of them has built a team
    around them with the right mix of ability and experience to match the particular
    challenges of their regions. We now have equally strong teams within each
    of the central functions.</font></p>
<p align="left"><font size="2" face="serif"><b>Reducing costs</b></font></p>
<p align="left"><font size="2" face="serif">In February last year we announced
    a radical cost reduction programme with a target versus our original budget
    for 2003 of reducing costs by at least $100 million, with actual savings
    for 2003 of $40 million and an annualised run rate by the end of the year
    of $75 million. I am pleased to say that we have exceeded each of these targets.
    Actual savings against budget for 2003 were $76 million and the run rate
    by the end of the year was $110 million. Our new target is a saving of $120
    million against the 2003 budget by the end of 2004. We currently expect total
    overheads in 2004 to be marginally down year on year at constant exchange
    rates.</font></p>
<p align="left"><font size="2" face="serif"><b>Reducing capital intensity</b></font></p>
<p align="left"><font size="2" face="serif">We said in the Listing Particulars
    that we are committed to optimising capital deployment. Assets will only
    be owned if they have strategic value or generate superior returns. We have
    now developed plans for each of our assets taking into account a wide range
    of different criteria, including where relevant the state of the local market
    and readiness of the asset to be sold. We have consequently begun a major
    disposal programme.</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">Over the past year we have sold 20
    hotels, raising net proceeds of over &pound;250 million. These have included
    the sale of the InterContinental Mayfair and 16 Staybridge Suites.</font></p>
<p align="left"><font size="2" face="serif">We currently estimate that the disposal
    programme will involve the further sale of assets with a net book value of
    between &pound;800 million and &pound;1 billion. The sheer scale and complexity
    of the programme means that it will take some considerable time to complete
    and is subject to no significant adverse changes in market conditions. </font></p>
<p align="left"><font size="2" face="serif">At the same time as disposing of
    assets, we have reduced hotels capital expenditure to less than &pound;300
    million in 2003, half that expended in 2001.</font></p>
<p align="left"><font size="2" face="serif"><b>Driving revenues</b></font></p>
<p align="left"><font size="2" face="serif">Another key area of focus during
    the year has been driving revenues. We have had a number of significant successes.</font></p>
<p align="left"><font size="2" face="serif">We have increased membership of our
    loyalty programme by 23% to over 19 million members; our call centre revenues
    are up 5% on 6% fewer calls; and our internet revenues are up 80% and now
    account for 10% of sales.</font></p>
<p align="left"><font size="2" face="serif">Other successes include the acquisition
    of the Candlewood Suites brand for $15 million; rapid growth of the Staybridge
    Suites brand, which is now on course to reach 100 properties; growth in market
    share of the Holiday Inn brand in the UK; and securing an outstanding InterContinental
    hotel in Bangkok.</font></p>
<p align="left"><font size="2" face="serif"><b>Britvic</b></font></p>
<p align="left"><font size="2" face="serif">I am delighted that we have signed
    a new bottling agreement with Pepsi for a further 15 years on broadly the
    same terms as the previous agreement. This is a huge vote of confidence in
    both the Britvic management team and our own portfolio of brands.</font></p>
<p align="left"><font size="2" face="serif">I am even more delighted that we
    have signed a separate agreement with Britvic&#8217;s other shareholders
    which allows us, subject to certain conditions, to proceed with an IPO of
    the business between 1 January 2005 and 31 December 2008. The decision to
    proceed will depend on market conditions at the time and the agreement of
    the other two major shareholders, Whitbread and Allied Domecq. </font></p>
<p align="left"><font size="2" face="serif"><b>Operating results</b></font></p>
<p align="left"><font size="2" face="serif">The combination of the actions we
    have taken, together with a small improvement in trading conditions in some
    markets for the second half of 2003 has led to some improvement in operating
    performance in the latter half of 2003. Hotel pro forma operating profits
    were up 6% in the third quarter and a further 11% in the fourth quarter of
    the year. In addition, Britvic has had another stunning year delivering record
    profits for the fourth year in a row.</font></p>
<p align="left"><font size="2" face="serif"><b>Return of capital</b></font></p>
<p align="left"><font size="2" face="serif">The success of our asset disposal
    programme, the reduced level of capital expenditure and the tight control
    over working capital has meant that we have generated substantial amounts
    of cash. Net debt at 31 December 2003 was &pound;569 million as compared
    with &pound;1,200 million at Separation. We are therefore able to announce
    a return of &pound;250 million of capital to shareholders by way of a share
    repurchase programme whilst at the same time seeking to maintain our investment
    grade rating.</font></p>
<p align="left"><font size="2" face="serif"><b>Commitment to service and staff
      development</b></font></p>
<p align="left"><font size="2" face="serif">Our commitment to delivering excellent
    service to our guests remains constant. Each brand offers a clearly differentiated
    experience to our guests, wherever they are. Our ability to do this depends
    on the dedication and hard work of our employees. They have responded magnificently
    this year &#150; in exceedingly difficult market conditions and at a time
    of huge change. I offer them my sincere thanks and a continued promise to
    strive to provide them with the right environment, motivation and support
    to develop their skills and abilities.</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>Current trading</b></font></p>
<p align="left"><font size="2" face="serif">We have for some time been cautious
    when commenting on current trading. However, trading over the last six months
    now gives us some confidence to say that we believe conditions are improving
    steadily in both the Americas and the UK. Furthermore trading in Asia Pacific
    has recovered substantially since the SARS scare. However continental Europe
    remains difficult and this is being exacerbated by the weakness of the US
    dollar.</font></p>
<p align="left"><font size="2" face="serif"><b>OPERATING AND FINANCIAL REVIEW</b></font></p>
<p align="left"><font size="2" face="serif">On 15 April 2003, following shareholder
    and regulatory approval, Six Continents PLC separated into two new groups,
    InterContinental Hotels Group PLC (&#8216;IHG&#8217;), comprising the Hotels
    and Soft Drinks businesses, and Mitchells &amp; Butlers plc (&#8216;MAB&#8217;),
    comprising the Retail and Standard Commercial Property Development businesses
    (&#8216;the Separation&#8217;). The Separation was accounted for under the
    principles of merger accounting which apply in the context of such group
    reconstructions. This Operating and Financial Review (&#8216;OFR&#8217;)
    focuses on the performance of the continuing operations of the businesses
    following the Separation. </font></p>
<p align="left"><font size="2" face="serif"><b>Change in accounting reference
      date</b></font></p>
<p align="left"><font size="2" face="serif">In order to bring our reporting timetable
    in line with the majority of comparable European and US hotel companies,
    IHG has changed its financial year end from 30 September to 31 December.
    The statutory financial period covered by these financial statements is therefore
    the 15 months ended 31 December 2003. During this period, IHG has made two
    interim results announcements as at 31 March 2003 and 30 September 2003.
    To assist shareholders, IHG is including in these financial statements an
    unaudited pro forma profit and loss account for the 12 months ended 31 December
    2003 and unaudited pro forma comparatives for the 12 months ended 31 December
    2002. This Operating and Financial Review principally comments on pro forma
    results for the 12 months ended 31 December 2003, as this will be the relevant
    period going forward.</font></p>
<p align="left"><font size="2" face="serif"><b>Overall Group results for the
      15 months ended 31 December 2003</b></font></p>
<p align="left"><font size="2" face="serif">Following the Separation IHG embarked
    on a clear strategy to significantly improve its return on capital and free
    cash flow, by focusing on revenue outperformance, reducing overheads and
    lowering capital intensity. As part of this strategy IHG has undertaken a
    fundamental reorganisation of its Hotels business. Management in the regions
    now concentrates on the key revenue and profit drivers of the regional businesses,
    whilst key global functions have been centralised to maximise the benefits
    of our scale and drive process efficiencies. As a result of these changes,
    the historical segmental analysis in the OFR has been restated to reflect
    the new organisational structure. Group turnover for the 15 months ended
    31 December 2003 was &pound;3,483m (&pound;3,615m for the 12 months ended
    30 September 2002).</font></p>
<p align="left"><font size="2" face="serif">Profit on ordinary activities before
    interest and exceptional items for the 15 months ended 31 December 2003 was &pound;483m
    (&pound;618m for the 12 months ended 30 September 2002).</font></p>
<p align="left"><font size="2" face="serif">Exceptional items after tax totalled &pound;336m
    and included an operating exceptional item of &pound;51m and non-operating
    exceptional items totalling &pound;213m. Details of the exceptional items
    are outlined in Exceptional Items below. </font></p>
<p align="left"><font size="2" face="serif">Group net cash flow for the 15 months
    ended 31 December 2003 was an outflow of &pound;22m (outflow of &pound;305m
    for the 12 months ended 30 September 2002). Cash flow from operations for
    the 15 months ended 31 December 2003 was &pound;795m, up &pound;75m (10.4%)
    from the 12 months ended 30 September 2002. Increased non-operating outflows
    during the 15 months included a &pound;136m premium on the early settlement
    of debt and &pound;66m of Separation costs. Offsetting these were a &pound;173m
    decrease in investment in tangible fixed assets and a &pound;131m increase
    in proceeds from the sale of tangible fixed assets.</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">Basic earnings per share for the
    15 months ended 31 December 2003 was 2.6p (62.5p for the 12 months ended
    30 September 2002). Adjusted earnings per share, after eliminating the distorting
    effect of exceptional items, was 48.4p for the 15 months ended 31 December
    2003 (51.4p for the 12 months ended 30 September 2002). Dividends for the
    15 months ended 31 December 2003 were 21.15p per share.</font></p>
<p align="left"><font size="2" face="serif">In conjunction with the Separation,
    the Group reorganised its debt financing. As a result, the majority of the
    Group&#8217;s existing debt was repaid and new facilities put in place for
    IHG. Subsequently, IHG issued a &euro;600m bond. </font></p>
<p align="left"><font size="2" face="serif">Subsequent to year end the Group
    has announced its intention to commence an on-market share repurchase programme.
    Details are outlined in Treasury Management below.</font></p>
<p align="left"><font size="2" face="serif"><b>Group Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2" align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Unaudited</font><font size="1"><br>
        <font face="serif">12 months ended</font><br>
        <font face="serif">31 Dec 2003</font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Unaudited</font><font size="1"><br>
        <font face="serif">12 months ended</font><br>
        <font face="serif">31 Dec 2002</font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Audited</font><font size="1"><br>
        <font face="serif">15 months ended</font><br>
        <font face="serif">31 Dec 2003</font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Unaudited</font><font size="1"><br>
        <font face="serif">3 months ended</font><br>
        <font face="serif">31 Dec 2002</font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Audited</font><font size="1"><br>
        <font face="serif">12 months ended</font><br>
        <font face="serif">30 Sept 2002</font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&pound;m</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&pound;m</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&pound;m</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&pound;m</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">&pound;m</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Hotels</font></td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,487</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,538</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,870</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">383</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,532</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr>
    <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="right"><font size="2" face="serif">674</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">611</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">820</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">146</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">602</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">IHG</font></td>
    <td align="right"><font size="2" face="serif">2,161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,149</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,690</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">529</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,134</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left"><font size="2" face="serif">MAB</font></td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">793</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">342</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1,481</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Group</font></td>
    <td align="right"><font size="2" face="serif">2,161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,149</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">3,483</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">871</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">3,615</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left"><font size="2" face="serif">Profit before interest
        and non-operating exceptional items:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Hotels</font></td>
    <td align="right"><font size="2" face="serif">203</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">252</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">251</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">48</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">266</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Pro forma adjustments</font></td>
    <td align="right"><font size="2" face="serif">(3</font></td>
    <td align="left"><font size="2" face="serif">)</font></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"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <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="right"><font size="2" face="serif">83</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">68</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">95</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">12</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">63</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Exceptional items &#150; Hotels</font></td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(51</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(77</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">IHG</font></td>
    <td align="right"><font size="2" face="serif">283</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">307</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">295</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">60</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">252</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">MAB</font></td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">137</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">52</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">289</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left"><font size="2" face="serif">Group</font></td>
    <td align="right"><font size="2" face="serif">283</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">307</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">432</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">112</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">541</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">EBITDA</font></td>
    <td align="right"><font size="2" face="serif">481</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">500</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">785</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">186</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">889</font></td>
    <td align="left">&nbsp;</td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Highlights for the 12 months ended
      31 December 2003</b></font></p>
<p align="left"><font size="2" face="serif">IHG&#8217;s businesses experienced
    varying trading conditions in the 12 months ended 31 December 2003. While
    the UK&#8217;s exceptionally long summer saw the overall market for soft
    drinks rise 8%, continuing global insecurity, SARS, depressed economies and
    laterly exchange rate movements presented one of the hotel industry&#8217;s
    most challenging years.</font></p>
<p align="left"><font size="2" face="serif">IHG turnover for the 12 months ended
    31 December 2003 was &pound;2,161m (12 months ended 31 December 2002 &pound;2,149m).
    During the period, Soft Drinks turnover rose &pound;63m (10.3%) to &pound;674m,
    while Hotels turnover fell &pound;51m (-3%) to &pound;1,487m.</font></p>
<p align="left"><font size="2" face="serif">Pro forma IHG profit before interest
    and exceptional items for the 12 months ended 31 December 2003 was &pound;283m
    (12 months ended 31 December 2002 &pound;307m). Soft Drinks operating profit
    increased &pound;15m (22.1%) to &pound;83m while Hotels, net of pro forma
    adjustments, fell &pound;39m (16.3%) to &pound;200m.</font></p>
<p align="left"><font size="2" face="serif">Pro forma adjustments totalled &pound;3m
    for the 12 months ended 31 December 2003 (&pound;13m for the 12 months ended
    31 December 2002). These adjustments relate principally to charges to MAB
    and pension credits.</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>
<p align="left"><font size="2" face="serif"><b>Strategy</b></font></p>
<p align="left"><font size="2" face="serif">The overall strategy for Hotels is
    clear. The Group will use the strength of its brands, the breadth of its
    hotels distribution, the diversity of its business models and the benefits
    of its scale to drive growth and returns for shareholders. Key to the implementation
    of this strategy are the following priorities:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td align="left" width="3%">&nbsp;</td>
    <td align="left" width="3%"><font size="2" face="serif">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">the continued development of
        high quality, strongly differentiated and preferred brands</font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">extending the network of hotels
        around the world that are attractive to international guests in the upscale
        and upper upscale brands, and in the domestic markets for the midscale
        brands</font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">using our scale to drive revenues
        and operating margins</font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">enhancing returns from the asset
        base by redeploying capital over time, and</font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">investing and training our staff
        to ensure that our brands and service levels are maintained and enhanced.</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Action has already been taken in
    several areas to improve returns to shareholders. The organisation has been
    redesigned to align behind the strategic priorities and to facilitate decision
    making. Changes have been made to ensure the right people are in the right
    jobs to drive the strategy, and the cost base has been reduced by eliminating
    unnecessary work, and streamlining ongoing processes. In addition a thorough
    asset by asset review has been undertaken to determine the appropriate level
    of hotel ownership.</font></p>
<p align="left"><font size="2" face="serif">Unaudited Pro Forma</font></p>
<p><font size="2" face="serif"><b>Hotels Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan="5" align="right" valign="bottom"><div align="center"><font size="1" face="serif"><b>12 months to</b></font></div></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan="7" align="right" valign="bottom"><div align="center"><font size="1" face="serif"><b>3 months to</b></font></div></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 Dec</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 align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 Dec</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 align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
      <font face="serif"><b>%</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 Mar</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 align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>30 Jun</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 align="left" valign="bottom">      <font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>30 Sept</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 align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 Dec</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 align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Americas</font></td>
    <td width="8%" align="right"><font size="2" face="serif">525</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">569</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">&#8211;8</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">127</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">139</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">133</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">126</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr 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="right"><font size="2" face="serif">807</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">800</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">175</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">198</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">217</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">217</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right"><font size="2" face="serif">114</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">128</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;11</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">29</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">19</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">28</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">38</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></td>
    <td align="right"><font size="2" face="serif">41</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">41</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">11</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">9</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">11</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">1,487</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1,538</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;3</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">341</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">367</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">387</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">392</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Profit before interest
        and exceptional items:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right"><font size="2" face="serif">161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">173</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;7</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">32</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">50</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">47</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">32</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right"><font size="2" face="serif">92</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">120</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;23</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">13</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">19</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">36</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">24</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right"><font size="2" face="serif">12</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">26</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;54</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">4</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(3</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">3</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">8</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></td>
    <td align="right"><font size="2" face="serif">(65</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(80</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;19</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(20</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(20</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(10</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(15</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">200</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">239</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;16</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">29</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">46</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">76</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">49</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif">Unaudited Pro Forma</font></p>
<p align="left"><font size="2" face="serif"><b>Hotels
  Results (continued)</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td colspan="7" align="center"><font size="1" face="serif"><b>3
          months to</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" 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" face="serif"><b>31 Mar</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 align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>30 Jun</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 align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>30 Sept</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 align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 Dec</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 align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" 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="8%" align="right"><font size="2" face="serif">135</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">156</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">142</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">136</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr 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"><font size="2" face="serif">183</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">210</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">204</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">203</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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"><font size="2" face="serif">34</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">32</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">28</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">34</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">11</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">362</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">408</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">385</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">383</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Profit before interest
        and exceptional items:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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"><font size="2" face="serif">38</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">54</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">47</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">34</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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"><font size="2" face="serif">21</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">35</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">42</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">22</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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"><font size="2" face="serif">6</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">5</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">5</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></td>
    <td align="left">&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"><font size="2" face="serif">(19</font></td>
    <td align="left"><font size="2" face="serif">)</font></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"><font size="2" face="serif">(22</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">48</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">75</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">72</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">44</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Performance</b></font></p>
<p align="left"><font size="2" face="serif">Trading was depressed in the first
    and second quarters by the threat and then outbreak of the war in Iraq and
    the outbreak of SARS in Asia and Canada. In Europe, Middle East and Africa
    (&#8216;EMEA&#8217;), in the third and fourth quarters there were early signs
    of recovery in the UK, whilst trading in Continental Europe remained flat.
    In the Americas and Asia Pacific, improved local currency trading was impacted
    on conversion to sterling by the fall in the US dollar.</font></p>
<p align="left"><font size="2" face="serif">Hotels turnover decreased &pound;51m
    (&#8211;3.3%) from &pound;1,538m for the 12 months ended 31 December 2002, to &pound;1,487m
    for the 12 months ended 31 December 2003. While revenue rose &pound;7m (0.9%)
    in EMEA, the Americas and Asia Pacific were negatively impacted by exchange
    rate movements. The decline of the US dollar against sterling by 9.7% from
    the first to fourth quarters resulted in sterling reported turnover in the
    Americas finishing the 12 months down 7.7% and Asia Pacific down 10.9%.</font></p>
<p align="left"><font size="2" face="serif">Hotels pro forma operating profit
    for the 12 months ended 31 December 2003 was &pound;200m, down 16.3% (12
    months ended 31 December 2002 &pound;239m).</font></p>
<p align="left"><font size="2" face="serif"><b>Reorganisation</b></font></p>
<p align="left"><font size="2" face="serif">As part of the drive to deliver the
    key strategic priorities, IHG has undertaken a fundamental review of the
    organisation. The key objectives of the review were to:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr>
    <td width="3%" align="left">&nbsp;</td>
    <td width="3%" align="left"><font size="2" face="serif">&#149;</font></td>
    <td align="left"><font size="2" face="serif">focus the organisation on the
        execution of its strategy</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#149;</font></td>
    <td align="left"><font size="2" face="serif">bring greater focus and establish
        clearer accountabilities</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="serif">&#149;</font></td>
    <td align="left"><font size="2" face="serif">streamline decision making</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#149;</font></td>
    <td align="left"><font size="2" face="serif">reduce unnecessary work and
        inefficient processes, and</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&#149;</font></td>
    <td align="left"><font size="2" face="serif">provide greater teamwork and
        integration.</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">The redesign of the organisation
    was completed by the end of January 2003 and has now been substantially implemented.
    What remains to be done will be completed, as planned, by the end of 2004.
    Regional executive teams had been established, led by well-respected hotel
    operators with at least 20 years of industry experience each. In addition,
    the key global functions have been centralised to allow maximum benefits
    of scale to be achieved and global process improvements to be progressed.</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">In March 2003, IHG announced that
    the reorganisation review would deliver annualised savings by December 2004
    of $100m, against the budgeted 2003 base. Of these, actual savings of $40m
    would be delivered by 31 December 2003, with an annualised run rate of $75m.</font></p>
<p align="left"><font size="2" face="serif">By 31 December 2003 IHG had achieved
    actual savings of $76m, with an annualised run rate of $110m. In view of
    progress to date, annualised savings of $120m are now anticipated to be delivered
    by December 2004.</font></p>
<p align="left"><font size="2" face="serif">Overheads in IHG comprise central
    and regional overheads, as discussed separately in this Report, together
    with regional costs that directly relate to regional income streams. In the
    year to 31 December 2003, these direct overheads totalled $119m compared
    to $141m for the year ended 31 December 2002; savings again being primarily
    driven from the reorganisation review.</font></p>
<p align="left"><font size="2" face="serif"><b>Asset Review and Investment</b></font></p>
<p align="left"><font size="2" face="serif">Following the Separation, IHG undertook
    a detailed review of its owned and leased portfolio to identify opportunities
    to lower capital intensity. Assets will only be owned if they have strategic
    value or generate superior returns. IHG have now developed plans for each
    owned asset taking into account a wide range of different criteria, including
    where relevant the state of the local market and readiness of the asset to
    be sold. It is currently estimated that the disposal programme will involve
    the further sale of assets with a net book value of between &pound;800m and &pound;1
    billion. The scale and complexity of the programme means that it will take
    some considerable time to complete and is subject to no significant adverse
    changes in market conditions. </font></p>
<p align="left"><font size="2" face="serif">In the 12 months to 31 December 2003
    IHG completed sales of fixed assets with proceeds of &pound;254m with an
    overall gain on sale of &pound;4m. IHG is in active negotiations on further
    sales and has a pipeline of disposals.</font></p>
<p align="left"><font size="2" face="serif">In July 2003, IHG completed the sale
    of a 16 property Staybridge Suite portfolio to Hospitality Properties Trust
    (&#8216;HPT&#8217;), one of the largest hotel real estate investment trusts,
    for $185m. Investment had been made into the Staybridge portfolio by IHG
    to enable rapid entry to the important US extended stay market. The disposal
    to HPT achieved a reduction in capital employed within the business while
    retaining management and branding of the hotels.</font></p>
<p align="left"><font size="2" face="serif">IHG&#8217;s strategic relationship
    with HPT expanded further with the conversion in September 2003 of 14 further
    HPT owned hotels to the Staybridge brand.</font></p>
<p align="left"><font size="2" face="serif">The sale of the InterContinental
    London May Fair for &pound;115m was completed in September 2003. With an
    alternative in London, and with this property in need of refurbishment, the
    opportunity was taken to reduce capital intensity in the business at a favourable
    price in excess of &pound;400,000 per room.</font></p>
<p align="left"><font size="2" face="serif">In October 2003, IHG announced the
    acquisition of the Candlewood Suites brand in the US for $15m from Candlewood
    Hotel Corporation. This brand&#8217;s positioning in the midscale extended
    stay segment will complement Staybridge&#8217;s upscale positioning. Candlewood
    is an established brand of purpose built hotels with 109 properties on average
    less than five years old. The major owner of Candlewood properties is HPT,
    which owned 64 at the time of announcement and which, in a related transaction,
    purchased an additional 12 properties. IHG will manage all 76 of HPT&#8217;s
    properties under 20-year agreements, with options to extend. The transaction
    concluded on 31 December 2003.</font></p>
<p align="left"><font size="2" face="serif"><b>Reservation Systems and Priority
      Club Rewards</b></font></p>
<p align="left"><font size="2" face="serif">The newly formed Global Brand Services
    continued to strengthen brand loyalty, to make it as easy as possible to
    book through IHG&#8217;s websites, call centres and travel agent relationships,
    and to provide supporting technology to deliver this. </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">Delivery through IHG&#8217;s reservations
    channels showed impressive growth during the year, across all IHG&#8217;s
    brands and regions. The percentage of total room nights booked through IHG&#8217;s
    reservation channels rose 2.6 percentage points, while net revenue booked
    rose 16.0%, in the 12 months ended 31 December 2003.</font></p>
<p align="left"><font size="2" face="serif">IHG&#8217;s global e-commerce team
    continued to pursue an aggressive strategy. In the last 12 months, IHG launched
    sites for the French, German, Spanish, New Zealand, Australian and Chinese
    markets and additional sites are planned. </font></p>
<p align="left"><font size="2" face="serif">The Priority Club Rewards programme
    continues to grow in importance to IHG, with membership increasing by 3.6
    million to over 19 million members by December 2003. </font></p>
<p align="left"><font size="2" face="serif"><b>Scale</b></font></p>
<p align="left"><font size="2" face="serif">There was a net increase in system
    size during the year of 187 hotels, comprising 21,445 rooms, with over 60%
    of these being new build properties. Included in this were the 109 hotels
    and 12,569 rooms of the Candlewood Suites brand, purchased on 31 December
    2003. Key growth areas have been the continued expansion of Express in the
    limited service sector, which looks set to exceed 1,500 hotels in 2004, and
    Staybridge, which finished the year with 71 hotels operating and more than
    40 in its pipeline.</font></p>
<p align="left"><font size="2" face="serif">IHG&#8217;s pipeline of hotels signed
    and waiting to enter the system grew to 544 hotels and 71,226 rooms by 31
    December 2003, up from 490 hotels and 65,975 rooms as at 31 December 2002.</font></p>
<p align="left"><font size="2" face="serif"><b>AMERICAS</b></font></p>
<p align="left"><font size="2" face="serif"><b>Americas
  Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td colspan="3" align="center" valign="bottom"><font size="1" face="serif"><b>12 months to</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December 2003<br>
    $m</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December 2002<br>
    $m</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
        <font face="serif"><b>%</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Owned and leased</font></td>
    <td width="8%" align="right"><font size="2" face="serif">481</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">481</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">&#151;</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right"><font size="2" face="serif">46</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">51</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;10</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Franchised</font></td>
    <td align="right"><font size="2" face="serif">327</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">325</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">854</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">857</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left"><font size="2" face="serif">Operating profit
        before exceptional items:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Owned and leased</font></td>
    <td align="right"><font size="2" face="serif">32</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">38</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;16</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right"><font size="2" face="serif">7</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">11</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;36</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Franchised</font></td>
    <td align="right"><font size="2" face="serif">279</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">269</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">4</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">318</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">318</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#151;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="3" align="left"><font size="2" face="serif">Regional overheads</font></td>
    <td align="right"><font size="2" face="serif">(56</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(58</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;3</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Total</font></td>
    <td width="50%" align="left"><font size="2" face="serif">&nbsp;</font><font size="2" face="serif">$m</font></td>
    <td align="right"><font size="2" face="serif">262</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">260</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Sterling equivalent</font></td>
    <td align="left"><font size="2" face="serif">&pound;m</font></td>
    <td align="right"><font size="2" face="serif">161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">173</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;7</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Revenue per available room (&#8216;RevPAR&#8217;)
    performance in the franchised estate finished the 12 months ended 31 December
    2003 0.3% down from the prior year at $46.61. The war in Iraq in the first
    half of the year caused franchised RevPAR to fall 2.6%. In the third and
    fourth quarters, the franchised estate recorded 1.5% and 2.7% RevPAR growth
    respectively. All brands recorded a stronger second half to the year, with
    InterContinental, Express and Staybridge franchises all recording over 3.5%
    year-on-year growth for the second six months.</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">RevPAR growth in the owned and managed
    estates followed a similar trend with the second half of the year significantly
    up on the first. The InterContinental owned estate, with its major gateway
    city exposure, grew year-on-year in each quarter as stability returned to
    the travel market. The InterContinental hotels in Chicago, New York, San
    Francisco and Miami all recorded strong growth in the second half of the
    year. </font></p>
<p align="left"><font size="2" face="serif">Managed results include the full
    profit and loss account for certain properties where IHG is responsible for
    the underlying operations. Operating profit in the managed estate fell due
    to RevPAR declines in the managed InterContinental and Crowne Plaza estates
    in North and Latin America, and the agreed payments made to HPT under our
    management contract.</font></p>
<p align="left"><font size="2" face="serif">In July 2003, IHG sold 16 Staybridge
    Suites to HPT for $185m, retaining management and branding. Subsequently,
    HPT has converted 14 other suite hotels to IHG&#8217;s Staybridge brand and
    management.</font></p>
<p align="left"><font size="2" face="serif">Total Americas overheads including
    direct costs, were down 10%, with the separately disclosed regional overheads
    down 3%. The region finished with pro forma operating profit for the 12 months
    ended 31 December 2003 of $262m, marginally ahead of 2002 ($260m 12 months
    ended 31 December 2002).</font></p>
<p align="left"><font size="2" face="serif">The weakening of the US dollar against
    sterling had a negative impact in the second half of the year and the Americas
    finished the 12 months ended 31 December 2003 with pro forma operating profit
    in sterling of &pound;161m, down 7% from the 12 months ended 31 December
    2002.</font></p>
<p align="left"><font size="2" face="serif"><b>EMEA</b></font></p>
<p align="left"><font size="2" face="serif"><b>EMEA
  Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td colspan="3" align="center" valign="bottom"><font size="1" face="serif"><b>12 months to</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December 2003<br>
      &pound;m</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December 2002<br>
      &pound;m</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
        <font face="serif"><b>%</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Owned and leased</font></td>
    <td width="8%" align="right"><font size="2" face="serif">746</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">739</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">1</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right"><font size="2" face="serif">38</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">37</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">3</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Franchised</font></td>
    <td align="right"><font size="2" face="serif">23</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">24</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;4</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">807</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">800</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left"><font size="2" face="serif">Operating profit
        before exceptional items:</font></td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Owned and leased</font></td>
    <td align="right"><font size="2" face="serif">77</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">115</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;33</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right"><font size="2" face="serif">19</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">21</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;10</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Franchised</font></td>
    <td align="right"><font size="2" face="serif">18</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">14</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">29</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="3" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">114</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">150</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;24</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">Regional overheads</font></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"><font size="2" face="serif">(30</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;27</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">Total</font></td>
    <td width="50%" align="left"><font size="2" face="serif">&pound;m</font></td>
    <td align="right"><font size="2" face="serif">92</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">120</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;23</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">Dollar equivalent</font></td>
    <td align="left"><font size="2" face="serif">$m</font></td>
    <td align="right"><font size="2" face="serif">149</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">180</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;17</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Turnover in EMEA totalled &pound;807m
    for the 12 months ended 31 December 2003, an increase of &pound;7m on 2002.
    Owned and leased turnover grew by &pound;7m with the reopening during the
    year of the refurbished InterContinental Le Grand Paris, and the opening
    of the newly built Crowne Plaza Brussels Airport, Holiday Inn Paris Disney,
    and three Express hotels in Germany. Euro denominated turnover rose 9%, but
    with exchange rate movements conversion to sterling eroded this to a 1% increase.</font></p>
<p align="left"><font size="2" face="serif">RevPAR in the region finished the
    12 months ended 31 December 2003 down 0.7% on the prior 12 months at $56.36.
    The trend in the first half of the year was similar to that experienced in
    the Americas, with trading depressed by the threat and then outbreak of the
    war in Iraq. In the second half of the year the UK market showed signs of
    recovery, although the picture was less clear in Europe, with both the German
    and French markets experiencing mixed trading conditions.</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">The Holiday Inn UK estate recorded
    five consecutive months of RevPAR growth to finish the year up 2.3%. The
    UK regions, with their domestic focus, recovered earlier than London and
    recorded seven consecutive months of growth. In London, December 2003 trading
    was particularly strong with the majority of the owned estate recording double
    digit RevPAR growth to end the month up 12.3%.</font></p>
<p align="left"><font size="2" face="serif">Across EMEA the InterContinental
    estate finished the year with an overall RevPAR decline of 5.7%. While the
    owned InterContinental estate finished down 8.0% due to its exposure to the
    main European gateways, the managed Middle East estate traded more positively
    with the comparable Middle East estate recording RevPAR growth of 2.7%.</font></p>
<p align="left"><font size="2" face="serif">Crowne Plaza finished the 12 months
    with RevPAR growth of 3.3% due to growth in the managed and franchised estates
    of 11.1% and 3.2% respectively. This performance was helped by the Middle
    East estate which finished the 12 months ended 31 December 2003 up 29.5%.</font></p>
<p align="left"><font size="2" face="serif">Franchise turnover fell due to a
    fall in RevPAR and exchange rate movements, offset by growth in system size.
    Franchise profits grew primarily due to savings in franchise overheads realised
    as part of the organisational review.</font></p>
<p align="left"><font size="2" face="serif">EMEA pro forma operating profit before
    exceptional items totalled &pound;92m for the 12 months ended 31 December
    2003. The conversion of revenue to operating profit was depressed by the
    owned and leased estate, where the combined effects of pre-opening costs,
    hotels opening towards the end of the period, and increased depreciation
    charges associated with prior year refurbishment, all negatively impacted
    costs.</font></p>
<p align="left"><font size="2" face="serif">Regional overheads fell &pound;8m
    to &pound;22m for the 12 months ended 31 December 2003 (&pound;30m for the
    12 months ended 31 December 2002) as a result of the reorganisation initiatives.</font></p>
<p align="left"><font size="2" face="serif">During the year the InterContinental
    Le Grand Paris reopened after a full refurbishment to widespread acclaim,
    firmly positioning the property at the top of the Paris market. The Holiday
    Inn Paris Disney opened giving representation at one of Europe&#8217;s leading
    family leisure destinations and the Crowne Plaza Brussels Airport opened
    at the end of the year, giving the brand another defining asset at a major
    European airport.</font></p>
<p align="left"><font size="2" face="serif">The managed and franchised estate
    in EMEA opened 40 hotels with over 6,500 rooms. Of these hotels, 78% were
    new build. As at 31 December 2003, there were a further 96 hotels with over
    18,000 rooms signed and under development.</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>ASIA PACIFIC</b></font></p>
<p align="left"><font size="2" face="serif"><b>Asia Pacific Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td colspan="4" align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="center"><font size="1" face="serif"><b>12 months to</b></font></td>
    <td align="left"><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="4" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="1" face="serif"><b>31 December 2003 $m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 December 2002 $m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
          <font face="serif"><b>%</b></font></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td colspan="4" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&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">&nbsp;</td>
    <td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Owned
        and leased</font></td>
    <td align="right">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">154</font></td>
    <td align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">156</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">&#8211;1</font></td>
    <td width="2%" align="left"><h5>&nbsp;</h5>
    </td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="3" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">26</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">30</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;13</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td align="left">&nbsp;</td>
    <td colspan="3" align="left"><font size="2" face="serif">Franchised</font></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"><font size="2" face="serif">6</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;17</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td colspan="4" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">185</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">192</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;4</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td colspan="4" align="left"><font size="2" face="serif">Operating profit
        before exceptional items:</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="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&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">&nbsp;</td>
    <td colspan="3" align="left"><font size="2" face="serif">Owned and leased</font></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"><font size="2" face="serif">27</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;33</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="3" align="left"><font size="2" face="serif">Managed</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">15</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">24</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;38</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td align="left">&nbsp;</td>
    <td colspan="3" align="left"><font size="2" face="serif">Franchised</font></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"><font size="2" face="serif">5</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;20</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td colspan="4" align="left"><font size="2" face="serif">&nbsp;</font></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"><font size="2" face="serif">56</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;34</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td colspan="4" align="left"><font size="2" face="serif">Regional overheads</font></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"><font size="2" face="serif">(17</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">6</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">Total</font></td>
    <td width="50%" align="left"><font size="2" face="serif">$m</font></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"><font size="2" face="serif">39</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;51</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td colspan="3" align="left"><font size="2" face="serif">Sterling equivalent</font></td>
    <td align="left"><font size="2" face="serif">&pound;m</font></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"><font size="2" face="serif">26</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">&#8211;54</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="4"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Turnover in Asia Pacific for the
    12 months ended 31 December 2003 was $185m, down $7m (4%) from the 12 months
    ended 31 December 2002.</font></p>
<p align="left"><font size="2" face="serif">In addition to the impact of the
    war in Iraq, trading in Asia Pacific was depressed by the Bali bombing and
    the SARS outbreak in Greater China.</font></p>
<p align="left"><font size="2" face="serif">Trading at the InterContinental Hong
    Kong fell sharply in March 2003, but recovery commenced in the third and
    fourth quarters. The opening of the award-winning Spoon restaurant in the
    InterContinental Hong Kong in October lifted non-rooms revenue. In Australia,
    the Rugby World Cup gave trading a boost in the second half of the year.</font></p>
<p align="left"><font size="2" face="serif">Initiatives to increase revenue within
    the region included the roll-out of local websites for China, Australia and
    New Zealand, and the opening of a Central Reservations Office based in Guangzhou,
    The People&#8217;s Republic Of China, supporting calls in Cantonese and Mandarin.
    The addition during the year of Air China as a Priority Club Rewards partner
    further strengthened our travel alliances in the region.</font></p>
<p align="left"><font size="2" face="serif">System growth continued in the region
    with a net increase of over 3,000 rooms operated under management agreements.
    Highlights of the new openings were five new InterContinental hotels in Thailand,
    Australia and India, and four Holiday Inns in Greater China. The new Holiday
    Inns in China brought the system size to 44 hotels, which together with the
    18 management agreements signed, but under development, extended IHG&#8217;s
    leadership in the key Greater China market.</font></p>
<p align="left"><font size="2" face="serif">The region continues to explore innovative
    deal structures, and was awarded the &#8216;Deal of the Year&#8217; award
    at the 2003 Asia Pacific Hotel Investment conference for securing the management
    of the new InterContinental Bangkok and a neighbouring hotel, to open as
    a Holiday Inn in 2005.</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>CENTRAL</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="center"><font size="1" face="serif"><b>12 months to</b></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 December 2003<br>
      &pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 December 2002<br>
      &pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
          <font face="serif"><b>%</b></font></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Turnover</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">41</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">41</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">&#151;</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Gross
        central costs</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(106</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(121</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;12</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Net central costs</font></td>
    <td width="50%" align="left"><font size="2" face="serif">&pound;m</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(65</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(80</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;19</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Dollar equivalent</font></td>
    <td align="left"><font size="2" face="serif">$m</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(105</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(121</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">&#8211;13</font></td>
    <td align="left">&nbsp;</td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Central overheads principally comprise
    the costs of global functions that were centralised following the reorganisation
    review, reduced by Holidex fee income. The reduction in gross central costs
    from &pound;121m for the year ended 31 December 2002 to &pound;106m for 2003,
    primarily reflects savings driven from the reorganisation review.</font></p>
<p align="left"><font size="2" face="serif"><b>SOFT DRINKS</b></font></p>
<p align="left"><font size="2" face="serif"><b>Soft Drinks Results</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="center"><font size="1" face="serif"><b>12 months to</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 December 2003<br>
      &pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>31 December 2002<br>
      &pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1" face="serif"><b>Change</b></font><font size="1"><br>
          <font face="serif"><b>%</b></font></font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Turnover</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">674</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">611</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">10</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Operating
        profit</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">83</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">68</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">22</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Strategy</b></font></p>
<p align="left"><font size="2" face="serif">Soft Drinks continues to grow its
    market share in a number of key segments in which it operates. In addition
    to a strong investment programme in its key brands, Soft Drinks is also committed
    to an active new product development programme, which has recently brought
    outstanding success to the business through its J2O and Fruit Shoot brands.
    Whilst this investment is driving top line revenue growth, Soft Drinks is
    also highly focused on effective cost and asset management to deliver an
    even higher level of earnings and Return on Capital Employed growth.</font></p>
<p align="left"><font size="2" face="serif">Subsequent to year end Soft Drinks
    has secured a new long-term Exclusive Bottling Agreement (&#8216;EBA&#8217;)
    with PepsiCo Inc. The new EBA is on broadly similar terms to those in the
    current agreement. The term of the new agreement is 15 years and will be
    automatically extended by a further 5 years on an Initial Public Offering
    (&#8216;IPO&#8217;). As part of the new EBA the shareholding of Britannia
    Soft Drinks Limited (&#8216;BSD&#8217;) has been restructured, with IHG&#8217;s
    shareholding in BSD reduced to 47.5%. IHG will continue to control and consolidate
    BSD. BSD&#8217;s shareholders have also agreed subject, inter alia, to market
    conditions, to consider an initial public offering of BSD, between 1 January
    2005 and 31 December 2008.</font></p>
<p align="left"><font size="2" face="serif"><b>Performance</b></font></p>
<p align="left"><font size="2" face="serif">As a result of favourable summer
    trading conditions the overall UK soft drinks market grew 8%. Soft Drinks
    turnover of &pound;674m was up 10% on the previous year. In the year ended
    31 December 2003, Soft Drinks grew its share of the carbonates market with
    Tango having an outstanding year, with volumes up 14%. Both Pepsi and 7UP
    also performed well with volumes up 3% and 6% respectively. Following good
    performance in 2002, Robinsons continued to grow with sales excluding Fruit
    Shoot up a further 4% in 2003. Investment was made in further capacity to
    support the success of Fruit Shoot and J2O, with both brands leading their
    respective market segments with volume growth in 2003 of 54% and 95% respectively.</font></p>
<p align="left"><font size="2" face="serif">The business continued its focus
    on effective cost control, which contributed to an overall operating profit
    increase of 22% to &pound;83m.</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>Cash Flow and Investment</b></font></p>
<p align="left"><font size="2" face="serif">Operating cash flow for the year
    ended 31 December 2003 was &pound;68m (&pound;74m year ended 31 December
    2002). Capital expenditure of &pound;58m was up &pound;19m on the previous
    year. The increasing level of capital expenditure was driven by expansionary
    investment in additional Fruit Shoot and J2O production capacity, together
    with significant investment in a business transformation programme. This,
    in addition to implementing new IT infrastructure, will significantly enhance
    operating efficiency.</font></p>
<p align="left"><font size="2" face="serif"><b>GROUP RESULTS THREE MONTHS TO
      31 DECEMBER 2002</b></font></p>
<p align="left"><font size="2" face="serif">Group turnover for the three months
    ended 31 December 2002 was &pound;871m.</font></p>
<p align="left"><font size="2" face="serif">Group operating profit before non-operating
    exceptional items for the three months ended 31 December 2002 was &pound;112m.</font></p>
<p align="left"><font size="2" face="serif">Group EBITDA for the three months
    ended 31 December 2002 was &pound;186m.</font></p>
<p align="left"><font size="2" face="serif"><b>MITCHELLS &amp; BUTLERS</b></font></p>
<p align="left"><font size="2" face="serif">Included within the audited Group
    results for the 15 months ended 31 December 2003 are the 28 weeks from 1
    October 2002 until the Separation on 15 April 2003 of MABoperations.
    For the 12 months ended 30 September 2002 MAB results are for the full fiscal
    year.</font></p>
<p align="left"><font size="2" face="serif">For the 28 weeks until Separation,
    turnover from MAB operations was &pound;793m, up 0.9% from the comparable
    period in the prior year (&pound;786m in the 28 weeks ended 13 April 2002).
    Underlying the 0.9% rise in turnover was a 1.0% fall in drink sales and a
    2.7% rise in food sales. These comparisons were adversely affected by the
    timing of the important Easter trading period, which fell after the 2003
    trading period but in the 2002 trading period. MAB turnover for the 12 months
    ended 30 September 2002 was &pound;1,481m.</font></p>
<p align="left"><font size="2" face="serif">MAB operating profit before exceptional
    items for the 28 weeks prior to the Separation was &pound;137m (&pound;146m
    in the 28 weeks ended 13 April 2002). Gross operating margins were maintained
    and EBITDA was down only 0.5% despite the shift in Easter, higher employment
    and property costs arising from regulatory changes, and an increase in the
    pension charge. The reduction in operating profit was largely due to higher
    depreciation costs. MAB operating profit for the 12 months 30 September 2002
    was &pound;289m.</font></p>
<p align="left"><font size="2" face="serif">Operating cash flow generated by
    MAB was &pound;152m for the 28 weeks prior to the Separation (&pound;72m
    in the 28 weeks ended 13 April 2002). The improvement over the 28 weeks ended
    13 April 2002 was attributable to a &pound;64m reduction in net capital expenditure
    and a favourable movement in working capital of &pound;17m. MAB operating
    cash flow for the 12 months ended 30 September 2002 was &pound;145m.</font></p>
<p align="left"><font size="2" face="serif"><b>EXCEPTIONAL ITEMS</b></font></p>
<p align="left"><font size="2" face="serif">Following a review of the hotel estate,
    tangible fixed assets have been written down by &pound;73m. &pound;51m has
    been charged as an operating exceptional item and &pound;22m reverses previous
    revaluation gains.</font></p>
<p align="left"><font size="2" face="serif">Provisions against fixed asset investments
    primarily comprises a charge for diminution in the value of the Group&#8217;s
    interest in FelCor Lodging Trust Inc, a US hotel real estate investment trust.
    This charge reflects the directors&#8217; view that the value of the investment
    is equivalent to market value at 31 December 2003. </font></p>
<p align="left"><font size="2" face="serif">A charge of &pound;67m was incurred
    related to the delivery of the fundamental reorganisation in Hotels.</font></p>
<p align="left"><font size="2" face="serif">The Group incurred &pound;228m of
    non-operating exceptional costs before tax associated with the Separation.
    The total cost of the Separation was &pound;124m. Of this figure, &pound;4m
    was charged in 2002 and &pound;28m related to bank facility fees that will
    be amortised to profit over the period of the facility. IHG&#8217;s share
    of the non-facility fee element of costs is &pound;51m, and of the facility
    fees is approximately &pound;13m. A premium of &pound;136m was paid on the
    repayment of the Group&#8217;s EMTN loans and &pound;250m 10<sup><font size="1">3</font></sup><font size="1">/<sub>8</sub></font>%
    debenture in January and February 2003, respectively.</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">These operating and non-operating
    exceptional items, together with their related tax credits, have been excluded
    in the calculation of adjusted earnings per share.</font></p>
<p align="left"><font size="2" face="serif"><b>INTEREST</b></font></p>
<p align="left"><font size="2" face="serif">During the 15 months ended 31 December
    2003, the majority of the Group&#8217;s debt funding was refinanced. This
    involved the repayment of most of the existing debt, establishment of new
    debt facilities and a euro bond issue.</font></p>
<p align="left"><font size="2" face="serif">The net interest charge for the 15
    months to 31 December 2003 was &pound;47m compared to &pound;60m for the
    12 months to 30 September 2002. The reduction in the interest charge was
    principally due to a weaker US dollar, lower average interest rates and lower
    average debt levels.</font></p>
<p align="left"><font size="2" face="serif">The pro forma interest charge in
    the 12 months to 31 December 2003 was &pound;39m.</font></p>
<p align="left"><font size="2" face="serif"><b>TAXATION</b></font></p>
<p align="left"><font size="2" face="serif">Excluding the impact of exceptional
    items, the Group&#8217;s tax charge for the 15 months to 31 December 2003
    represents an effective rate of 10.9%, compared with 30.0% for the 12 months
    to 30 September 2002. The equivalent effective rate excluding MAB was 3.3%
    for the 15 months to 31 December 2003 compared with 27.9% for the 12 months
    to 30 September 2002. The rates have been substantially reduced in 2003 due
    to the impact of provision releases relating to tax matters which have been
    settled during the year or in respect of which the relevant statutory limitation
    period has expired.</font></p>
<p align="left"><font size="2" face="serif">Excluding the effect of exceptional
    items and prior year items, the Group&#8217;s tax rate for the 15 months
    to 31 December 2003 was 35.9% (35.8% for the 12 months ended 30 September
    2002). The equivalent rate excluding MAB was 36.5% for the 15 months to 31
    December 2003 and for the 12 months to 30 September 2002 38.4%. The difference
    from the UK statutory rate of 30.0% arose primarily due to overseas profits
    being taxed at rates higher than the UK statutory rate.</font></p>
<p align="left"><font size="2" face="serif"><b>CAPITAL EXPENDITURE AND CASH FLOW</b></font></p>
<p align="left"><font size="2" face="serif">The Group&#8217;s operating cash
    flow for the 15 months ended 31 December 2003 increased by &pound;340m to &pound;547m
    (&pound;207m for the 12 months ended 30 September 2002). Group net capital
    expenditure was down &pound;265m to &pound;248m; including &pound;265m of
    proceeds from the sale of tangible assets for the 15 months ended 31 December
    2003 (&pound;134m for the 12 months ended 30 September 2002).</font></p>
<p align="left"><font size="2" face="serif">Net interest paid fell &pound;32m
    to &pound;30m for the 15 months ended 31 December 2003, down from &pound;62m
    for the 12 months ended 30 September 2002. </font></p>
<p align="left"><font size="2" face="serif">The reduction in tax paid of &pound;127m
    reflects, principally, tax repayments received during the year and the impact
    of exceptional costs.</font></p>
<p align="left"><font size="2" face="serif"><b>EARNINGS AND DIVIDEND</b></font></p>
<p align="left"><font size="2" face="serif">Earnings per share numbers have been
    restated using the aggregate of the weighted average number of shares of
    InterContinental Hotels Group PLC and Six Continents PLC adjusted to equivalent
    shares of InterContinental Hotels Group PLC. The comparatives have been restated
    accordingly.</font></p>
<p align="left"><font size="2" face="serif">For the 15 months ended 31 December
    2003, earnings available for shareholders totalled &pound;19m, compared with &pound;457m
    for the 12 months ended 30 September 2002. The equivalent earnings per share
    were 2.6p and 62.5p respectively.</font></p>
<p align="left"><font size="2" face="serif">Earnings per share for the 15 months
    ended 31 December 2003 and the 12 months ended 30 September 2002 have been
    adjusted to eliminate the distorting effect of exceptional items, with the
    result that adjusted earnings per share were 48.4p and 51.4p respectively.
    The 2002 number has been restated to exclude all exceptional items.</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">The Board has proposed a final dividend
    of 9.45p per share, bringing the total dividend since Separation to 13.5p
    per share in line with the amount detailed in the Listing Particulars. </font></p>
<p align="left"><font size="2" face="serif"><b>TREASURY MANAGEMENT</b></font></p>
<p align="left"><font size="2" face="serif">Treasury policy is to manage financial
    risks that arise in relation to underlying business needs. The activities
    of the treasury function are carried out in accordance with Board approved
    policies and are subject to regular internal audit. Following the Separation,
    a thorough review of treasury policy was conducted. The review concluded
    that, in general, the existing treasury policies were appropriate to manage
    the financial risks faced by the Group and that only relatively minor policy
    changes were required. Revised treasury policies were approved by the Board
    in November 2003.</font></p>
<p align="left"><font size="2" face="serif">The treasury function does not operate
    as a profit centre. Treasury activities include the use of spot and forward
    foreign exchange instruments, currency options, currency swaps, interest
    rate swaps and options, and forward rate agreements.</font></p>
<p align="left"><font size="2" face="serif">One of the primary objectives of
    the Group&#8217;s treasury risk management policy is to protect the financial
    covenant ratios in its loan documentation against the adverse impact of movements
    in interest rates and foreign exchange rates.</font></p>
<p align="left"><font size="2" face="serif">Movements in foreign exchange rates,
    particularly the US dollar and euro, can affect the Group&#8217;s reported
    profit, net assets, gearing and interest cover. To hedge this translation
    exposure as far as is reasonably practical, borrowings are taken out in foreign
    currencies (either directly or via currency swaps), which broadly match those
    in which the Group&#8217;s major net assets are denominated. The interest
    on these borrowings hedges foreign currency denominated income streams. During
    the 15 months to 31 December 2003, the interest on US dollar borrowings hedged
    around 50% of the profit generated in US dollars, while interest on euro
    borrowings hedged around 86% of profit generated in euro and related currencies.</font></p>
<p align="left"><font size="2" face="serif">Interest rate exposure is managed
    within parameters that stipulate that fixed rate borrowings should normally
    account for no less than 25%, and no more than 75%, of net borrowings for
    each major currency. This is achieved through the use of fixed rate debt,
    interest rate swaps and options (such as caps) and forward rate agreements.</font></p>
<p align="left"><font size="2" face="serif">Based on the period end net debt
    position, and given the underlying maturity profile of investments, borrowings
    and hedging instruments at that date, a one percentage point rise in US dollar
    interest rates or a similar rise in euro rates, would increase the net interest
    charge by approximately &pound;4m in each case. A similar movement in sterling
    rates would have the opposite effect, reducing the net interest charge by
    approximately &pound;13m.</font></p>
<p align="left"><font size="2" face="serif">Foreign exchange transaction exposure
    is managed by the forward purchase or sale of foreign currencies or the use
    of currency options. Most significant exposures of the Group are in currencies
    that are freely convertible.</font></p>
<p align="left"><font size="2" face="serif">Long-term borrowing requirements
    at 31 December 2003 were met through bonds denominated in euro. Short-term
    and medium-term borrowing requirements are principally met from drawing under
    committed bank facilities. </font></p>
<p align="left"><font size="2" face="serif">Credit risk on treasury transactions
    is minimised by operating a policy on the investment of surplus funds that
    generally restricts counterparties to those with an A credit rating or better,
    or those providing adequate security. Limits are also set with individual
    counterparties. Most of the Group&#8217;s surplus funds are held in the United
    Kingdom or United States and there are no material funds where repatriation
    is restricted as a result of foreign exchange regulations.</font></p>
<p align="left"><font size="2" face="serif">The Group&#8217;s current credit
    ratings from Standard and Poor&#8217;s and Moody&#8217;s for long-term debt
    are BBB and Baa2 respectively. The Group continues to comply with all of
    the financial covenants in its loan documentation, none of which represents
    a material restriction on funding or investment policy in the foreseeable
    future.</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif">Subsequent to the year end the Group
    has announced its intention to commence an on-market share repurchase programme
    for &pound;250m, representing approximately 6% of the issued share capital.
    The precise timing of purchases and length of the programme will be dependent
    upon, amongst other things, market conditions. Purchases will commence under
    the existing authority from shareholders to be reviewed at the Annual General
    Meeting. Any shares repurchased under this programme will be cancelled.</font></p>
<p align="left"><font size="2" face="serif"><b>ACCOUNTING POLICIES</b></font></p>
<p align="left"><font size="2" face="serif">Urgent Issues Task Force (&#8216;UITF&#8217;)
    Abstract 38 &#8216;Accounting for ESOP Trusts&#8217; applies for the first
    time this period. UITF 38 requires that ESOP shares should be deducted from
    shareholders&#8217; funds rather than being shown as an asset. This change
    in accounting policy has been accounted for as a prior year adjustment and
    previously reported figures have been restated accordingly. The effect has
    been to decrease the Group&#8217;s net assets by &pound;31m in 2002 with
    no impact on the profit and loss account.</font></p>
<p align="left"><font size="2" face="serif">Other than the above, the financial
    statements have been prepared using accounting policies unchanged from the
    previous year.</font></p>
<p align="left"><font size="2" face="serif"><b>IAS implementation</b></font></p>
<p align="left"><font size="2" face="serif">The Group will be required to produce
    financial statements in line with International Financial Reporting Standards
    (&#8216;IFRS&#8217;) for accounting periods starting after 1 January 2005.
    This will require an opening balance sheet to be prepared under IFRS as at
    1 January 2004, and a full Profit and Loss Account, Balance Sheet and Cash
    Flow Statement for the year ended 31 December 2004 for comparative purposes.
    A review of the impact of the change to IFRS is underway within the Group.
    At this point it is not yet possible to determine the quantitative impact
    of IFRS.</font></p>
<p align="left"><font size="2" face="serif"><b>PENSIONS</b></font></p>
<p align="left"><font size="2" face="serif">In April 2003, MAB became the sponsoring
    employer for the Six Continents Pension Plan and the Six Continents Executive
    Pension Plan. Approximately 30% of the assets and liabilities of these Plans
    were transferred to the new InterContinental Hotels UK Pension Plan and the
    Britvic Pension Plan, which were established with effect from 1 April 2003.
    On an FRS 17 basis, the Plans had a deficit of &pound;46m and &pound;76m
    respectively at 31 December 2003. The defined benefits sections of both Plans
    are closed to new members.</font></p>
<p align="left"><font size="2" face="serif">Additional Company contributions
    of &pound;4.5m to the InterContinental Hotels Plan and &pound;8.0m to the
    Britvic Plan were paid in April 2003. A further &pound;1.0m was paid into
    the Britvic Plan in January 2004.</font></p>
<p align="left"><font size="2" face="serif">The only other material defined benefit
    plan is the US based InterContinental Hotels Pension Plan. This Plan is closed
    to new members and pensionable service no longer accrues for current employee
    members. As at 31 December 2003 the assets at market value were $85m and
    the liabilities (on a &#8216;Projected Benefits Obligation&#8217; basis)
    $116m, showing a deficit of $31m.</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>Unaudited Pro Forma Financial
      Information</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">1.</font></td>
    <td colspan="2" align="left"><font size="2" face="serif"><b>Basis of preparation
          of unaudited pro forma financial information</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><p><font size="2" face="serif">The statutory results
          for the year reflect activity for the 15 months ended 31 December 2003
          including the discontinued operations of MAB for the period up until
          Separation. Given the scale of these events the statutory accounts do
          not readily facilitate an understanding of IHG on a stand alone basis.
          We have, therefore, prepared unaudited pro forma financial information
          which show the results for IHG as if it had been independent for the
          12 months ended 31 December 2003 and 2002, operating under the financing
          and taxation structure put in place at the time of the Separation.</font></p>
      <p><font size="2" face="serif">        The unaudited pro forma financial
          information comprises the results of those businesses that form IHG
          following the Separation. Because of the nature of unaudited pro forma
          financial information, they cannot give a complete picture of the financial
          position of the Group. The information is provided as guidance only;
      it is not audited.</font></p>
      <p><font size="2" face="serif">        Significant changes were made to
          the financing structure of the Group as part of the Separation making
          the Group results difficult to compare year-on-year as they include
          the results of MAB up to Separation. The unaudited pro forma financial
          information therefore represents the Group results as reported but
          after excluding the results of MAB and after having been adjusted to
          reflect the changes made to the financing and taxation structure as
          part of the Separation, on the assumption that this structure had been
          in place since 1 October 2001. The unaudited pro forma financial information
          has been prepared using accounting policies consistent with those used
      in the Group financial statements.</font></p>
      <p><font size="2" face="serif">        The IHG unaudited pro forma financial
          information does not comprise statutory accounts within the meaning
          of Section 240 of the Companies Act 1985. The audited IHG financial
      statements, including MAB to Separation follow.</font></p></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">2.</font></td>
    <td colspan="2" align="left"><font size="2" face="serif"><b>Pro forma adjustments</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">The following adjustments
        have been made to IHG Operating Profit:</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td width="3%" align="left"><font face="serif">&nbsp;</font></td>
    <td width="3%" align="left"><font size="2">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">reversal of cost
        recoveries from MAB</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td align="left"><font size="2">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">reversal of notional interest
        credit on the portion of the pension payment that relates to MAB, and</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td align="left"><font size="2">&#8226;</font></td>
    <td align="left"><font size="2" face="serif">exclusion of all exceptional
        items.</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">3.</font></td>
    <td colspan="2" align="left"><font size="2" face="serif"><b>Interest charge</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">The unaudited pro
        forma interest charge 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.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td width="3%" align="left"><font size="2" face="serif">4.</font></td>
    <td align="left"><font size="2" face="serif"><b>Taxation</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">The unaudited pro forma tax
        charge is based on a rate of tax for IHG of 25.0% (2002 27.4%) applied
        to unaudited pro forma profit before taxation.</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">5.</font></td>
    <td align="left"><font size="2" face="serif"><b>Earnings per share</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">The unaudited pro forma earnings
        per share calculation is based on unaudited pro forma profit divided
        by 734 million shares, being the issued share capital of InterContinental
        Hotels Group PLC on Separation.</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Unaudited Pro Forma Profit and
      Loss Account</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left" valign="bottom"><font size="1" face="serif"><b>InterContinental
          Hotels Group</b></font></td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>12 months to</b></font><font size="1"><br>
        <font face="serif"><b>31 December 2003</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>12 months to</b></font><font size="1"><br>
        <font face="serif"><b>31 December 2002</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Turnover:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" 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="right" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">525</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">569</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr 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="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">807</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">800</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">114</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">128</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></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"><font size="2" face="serif">41</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Total Hotels</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1,487</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">1,538</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Soft Drinks</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">674</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">611</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Total turnover</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">2,149</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td colspan="2" align="left"><font size="2" face="serif">Operation profit:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">161</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">173</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">92</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">120</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">12</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">26</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Central</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(65</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(80</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Total Hotels</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">200</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">239</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left"><font size="2" face="serif">Soft Drinks</font></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"><font size="2" face="serif">68</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Total operating
        profit </font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">283</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">307</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left"><font size="2" face="serif">Net interest charge</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(39</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(49</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Profit before taxation</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">244</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">258</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td colspan="2" align="left"><font size="2" face="serif">Tax charge</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(61</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(71</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Minority equity
        interests</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(30</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(26</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Retained profit
        for the period</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">153</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">161</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">EBITDA</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">481</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">500</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td colspan="2" align="left"><font size="2" face="serif">Earnings per share
        (pence)</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">20.8</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">21.9</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<br>
<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>Unaudited pro forma operating
      assets statement</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#FFFFFF">
    <td align="left" valign="bottom"><font size="1" face="serif"><b>InterContinental Hotels Group</b></font></td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December
          2003</b></font><font size="1"><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>31 December
          2002</b></font><font size="1"><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Intangible assets</font></td>
    <td width="2%" align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">158</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size="2" face="serif">157</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Tangible assets</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">3,951</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">4,138</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Investments</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">172</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">215</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Fixed assets</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">4,281</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">4,510</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Stocks</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">44</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Debtors</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">486</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">456</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Creditors &#150; amounts falling
        due within one year</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(597</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(521</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Creditors &#150; amounts falling
        due after one year</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(97</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(143</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Provisions for liabilities and
        charges</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(79</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(17</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Net operating assets</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size="2" face="serif">4,038</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2" face="serif">4,328</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
    <td><hr noshade size="1">
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"><b>Unaudited pro forma operating
      cash flow</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#FFFFFF">
    <td align="left" valign="bottom"><font size="1" face="serif"><b>InterContinental Hotels Group</b></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>12 months
          to</b></font><font size="1"><br>
        <font face="serif"><b>December 2003</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Operating profit</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">283</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Depreciation and amortisation</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">198</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">EBITDA</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">481</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Stocks</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(2</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Debtors</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(19</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">Creditors</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">61</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Provisions and other non-cash
        items</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(10</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Operating activities</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">511</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">Capital expenditure</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(354</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Disposal proceeds</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">254</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">Operating cash flow</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">411</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<div align="center"><font size="2" face="serif">INTERCONTINENTAL HOTELS GROUP
    PLC</font><br>
    <font size="2" face="serif">PRELIMINARY RESULTS</font> <br>
</div>
<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>GROUP PROFIT AND LOSS ACCOUNT<br>
</b></font><font size="2" face="serif"><b>For the 15 months ended 31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr>
<td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td colspan="3" align="right"><font size="1" face="serif"><b>2003</b></font><font size="1"><br><font face="serif"><b>15 months<br>
  <br>
</b></font></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
<td colspan="3" align="right"><font size="1" face="serif"><b>2002</b></font><font size="1"><br><font face="serif"><b>12 months</b></font><br><font face="serif"><b>restated</b></font></font></td>
<td align="left"><font size="1" face="serif"><b><br>
      <br>
*</b></font></td>
</tr>
<tr>
<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" valign="bottom"><font size="1" face="serif"><b>Before</b></font><font size="1"><br><font face="serif"><b>exceptional</b></font><br><font face="serif"><b>items</b></font></font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1" face="serif"><b>Total</b></font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1" face="serif"><b>Before</b></font><font size="1"><br><font face="serif"><b>exceptional</b></font><br><font face="serif"><b>items</b></font></font></td>
<td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
<td align="right" valign="bottom"><font size="1" face="serif"><b>Total</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
<td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td width="2%" align="left"><font size="1">&nbsp;</font></td>
<td align="right"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td width="2%" align="left"><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" face="serif"><b>&pound;m</b></font></td>
<td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Turnover (note 3)</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,483</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,483</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,615</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,615</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Costs and overheads, less other income</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(3,000</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(3,051</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(2,997</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(3,074</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating profit (note 4)</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>483</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>432</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>618</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>541</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Non-operating exceptional items (note 5)</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(213</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">53</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Profit on ordinary activities before interest (note 4)</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>483</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>219</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>618</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>594</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Net interest (note 6)</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(47</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(47</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(60</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(60</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Premium on early settlement of debt (note 5)</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"> (136</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">&#151;</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Profit on ordinary activities before taxation</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>436</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>36</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>558</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>534</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Tax on profit on ordinary activities (note 7)</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(47</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">17&nbsp;</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(157</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(52</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Profit on ordinary activities after taxation</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>389</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>53</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>401</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>482</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Minority equity interests</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(34</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(34</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(25</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(25</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Earnings available for shareholders</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>355</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>19</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>376</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>457</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Dividends on equity shares</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(156</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(156</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(305</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(305</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Retained profit/(loss) for the period</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>199</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(137</b></font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>71</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>152</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
<tr>
<td colspan="4" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Earnings per ordinary share (note 8):</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" 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 bgcolor="#eeeeee">
<td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Basic</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>2.6</b></font></td>
<td align="left"><font size="2" face="serif"><b>p</b></font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>62.5</b></font></td>
<td align="left"><font size="2" face="serif"><b>p</b></font></td>
</tr>
<tr>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Diluted</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>2.6</b></font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>p</b></font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>62.3</b></font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>p</b></font></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif"><b>Adjusted</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>48.4</b></font></td>
<td align="left"><font size="2" face="serif"><b>p</b></font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>51.4</b><b>p</b></font></td>
<td align="left"><font size="2" face="serif"><b>**</b></font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif"><b>Dividend per ordinary share</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>21.15</b></font></td>
<td align="left"><font size="2" face="serif"><b>p</b></font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>41.72</b></font></td>
<td align="left"><font size="2" face="serif"><b>p</b></font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
</table>
<br>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="3%"><font size="1" face="serif">*</font></td>
<td align="left"><font size="1" face="serif">Restated exceptional items for comparability with 2003 disclosures.</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="1" face="serif">**</font></td>
<td align="left"><font size="1" face="serif">Restated to exclude all exceptional items for comparability with 2003 disclosures.</font></td>
</tr>
</table>
<br>
<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>STATEMENT OF TOTAL RECOGNISED GROUP GAINS AND LOSSES<br>
</b></font><font size="2" face="serif"><b>For the 15 months ended 31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <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" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font></font></td>
    <td align="left"><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>12 months</b></font></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="middle"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left"><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" face="serif"><b>&pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif"><b>Earnings available for shareholders</b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif"><b>19</b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif"><b>457</b></font></td>
<td width="2%" align="left">&nbsp;</td>
</tr>
<tr bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Reversal of previous revaluation gains due to impairment</font></td>
<td align="left">&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"><font size="2" face="serif">(36</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Exchange differences on foreign currency denominated net assets*, borrowings and currency swaps</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(60</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(36</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Other recognised gains and losses</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(82</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(72</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif"><b>Total recognised gains and losses for the period</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(63</b></font></td>
<td align="left"><font size="2" face="serif"><b>)&nbsp;</b></font></td>
<td align="right"><font size="2" face="serif"><b>385</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
</table>
<p align="left"><font size="2" face="serif"><b>INTERCONTINENTAL HOTELS GROUP PLC<br>
</b></font><font size="2" face="serif"><b>RECONCILIATION
      OF MOVEMENT IN SHAREHOLDERS&#8217; FUNDS<br>
</b></font><font size="2" face="serif"><b>For the 15 months ended 31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr>
<td width="3" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
<td align="left" valign="top"><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>15 months<br>
  <br>
</b></font></font></td>
<td align="left"><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>12 months</b></font><br><font face="serif"><b>restated</b></font></font></td>
<td align="left"><font size="1" face="serif"><b><br>
      <br>
**</b></font></td>
</tr>
<tr>
<td align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
<td align="left" valign="top"><font size="1">&nbsp;</font></td>
<td align="right" valign="top"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left" valign="top"><font size="1">&nbsp;</font></td>
<td align="right" valign="top"><font size="1" face="serif"><b>&pound;m</b></font></td>
<td align="left" valign="top"><font size="1">&nbsp;</font></td>
</tr>
<tr>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Earnings available for shareholders</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>19</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>457</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Dividends</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(156</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(305</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(137</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">152</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td align="left"><font size="2" face="serif">Other recognised gains and losses</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(82</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(72</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Issue of Six Continents PLC ordinary shares</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">3</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td align="left"><font size="2" face="serif">Issue of InterContinental Hotels Group PLC ordinary shares</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">18</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Net assets of MAB eliminated on separation</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(2,777</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td align="left"><font size="2" face="serif">Goodwill in MAB eliminated on separation</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">50</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Minority interest on transfer of pension prepayment</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(7</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td align="left"><font size="2" face="serif">Movement in shares in ESOP trusts</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">15</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Movement in goodwill &#8212;    exchange
    differences*</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">139</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">98</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Net movement in shareholders&#8217; funds</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(2,781</b></font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>181</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Opening shareholders&#8217; funds as previously reported </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">5,366</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">5,185</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">Prior year adjustment on adoption of UITF 38</font></td>
<td align="left">&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"><font size="2" face="serif">(31</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Opening shareholders&#8217; funds as restated</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>5,335</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>5,154</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Closing shareholders&#8217; funds</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>2,554</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>5,335</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="3%" align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">*</font></td>
    <td colspan="5" align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Including
        exchange differences on goodwill purchased prior to 30 September 1998
        and eliminated against Group reserves.</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">**</font></td>
    <td colspan="5" align="left" valign="top" bgcolor="#FFFFFF"><font size="1" face="serif">Restated
        on the adoption of UITF 38 (see note 1).</font></td>
    <td align="left" valign="top" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<br>
<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>GROUP CASH FLOW STATEMENT<br>
</b></font><font size="2" face="serif"><b>For the 15 months ended 31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="3" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><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>15 months</b></font></font></td>
    <td align="left"><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>12 months</b></font></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="3" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><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" face="serif"><b>&pound;m</b></font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
<tr>
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating activities (note 9)</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>795</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>720</b></font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Interest paid</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(141</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(186</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#ffffff"><font size="2" face="serif">Costs associated with new facilities</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(20</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Premium on early settlement of debt</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(136</font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#ffffff"><font size="2" face="serif">Dividends paid to minority shareholders</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(22</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(13</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Interest received</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">111</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">124</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Returns on investments and servicing of finance</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(208</b></font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(75</b></font></td>
<td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif">UK corporation tax received/(paid)</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">25</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(96</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="3" align="left" bgcolor="#ffffff"><font size="2" face="serif">Overseas corporate tax paid</font></td>
<td align="left" bgcolor="#ffffff">&nbsp;</td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(21</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#ffffff"><font size="2" face="serif">(27</font></td>
<td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif"><b>Taxation</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>4</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(123</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td width="12%" align="left"><font size="2" face="serif">Paid:</font></td>
<td width="2%" align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">Intangible fixed assets</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(10</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Tangible fixed assets</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(475</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(648</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">Fixed asset investments</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(37</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(14</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Received:</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">Tangible fixed assets</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">265</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">134</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">Fixed asset investments</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">9</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">15</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif"><b>Capital expenditure and financial investment</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(248</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
<td align="right"><font size="2" face="serif"><b>(513</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif">Acquisitions</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left">&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>
<td colspan="3" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Disposals</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">9</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif">Separation costs</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(66</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif"><b>&#151;</b>&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Acquisitions and disposals</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(66</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
<td align="right"><font size="2" face="serif"><b>(15</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif"><b>Equity dividends</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(299</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
<td align="right"><font size="2" face="serif"><b>(299</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif"><b>Net cash flow</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(22</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
<td align="right"><font size="2" face="serif"><b>(305</b></font></td>
<td align="left"><font size="2" face="serif"><b>) </b></font></td>
</tr>
<tr bgcolor="#ffffff">
<td colspan="3" align="left"><font size="2" face="serif"><b>Management of liquid resources and financing</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>77</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>295</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="3" align="left"><font size="2" face="serif"><b>Movement in cash and overdrafts</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>55</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>(10</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
</tr>
<tr>
<td colspan="3"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
</table>
<br>
<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>GROUP BALANCE SHEET<br>
</b></font><font size="2" face="serif"><b>31 December 2003</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
    <font face="serif"><b>31 Dec</b></font></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>30 Sept</b></font><br>
    <font face="serif"><b>restated</b></font></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;<font face="serif"><b><br>
      <br>
    *</b></font></font></td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
    <td align="right" valign="top"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td align="left" valign="top"><font size="1">&nbsp;</font></td>
  </tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Intangible assets</font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">158</font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
<td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">173</font></td>
<td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Tangible assets</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">3,951</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">7,641</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Investments</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">172</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">218</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Fixed assets</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>4,281</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>8,032</b></font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Stocks</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">44</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">91</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Debtors</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">523</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">629</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Investments</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">377</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
<td align="right" bgcolor="#eeeeee"><font size="2" face="serif">218</font></td>
<td align="left" bgcolor="#eeeeee">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Cash at bank and in hand</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">55</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">84&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr 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"><font size="2" face="serif"><b>999</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>1,022</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Creditors &#150; amounts falling due within one year:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" 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 bgcolor="#ffffff">
<td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Overdrafts</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(5</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(66</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Other borrowings</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(8</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(782</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Other creditors</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(1,072</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(1,425</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr 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"><font size="2" face="serif"><b>(86</b></font></td>
<td align="left"><font size="2" face="serif"><b>)</b></font></td>
<td align="right"><font size="2" face="serif"><b>(1,251</b></font></td>
<td align="left"><font size="2" face="serif"><b>) </b></font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr 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"><font size="2" face="serif"><b>4,195</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>6,781</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Creditors &#150; amounts falling due after one year:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" 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 bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Borrowings</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(988</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(631</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Other creditors</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(97</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(100</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Provisions for liabilities and charges:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" 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 bgcolor="#eeeeee">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Deferred taxation</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(314</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(495</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td colspan="-1" align="left"><font size="2" face="serif">Other provisions</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(79</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(71</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif">Minority equity interests</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">(163</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right"><font size="2" face="serif">(149</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif"><b>Net assets (note 13)</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>2,554</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>5,335</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Capital and reserves</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" 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 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"><font size="2" face="serif">739</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">734</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Share premium account</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">14</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"><b>&#151;</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif">Revaluation reserve</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">258</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif">1,020</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Merger reserve</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">1,164</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">1,164</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr bgcolor="#eeeeee">
<td colspan="2" align="left"><font size="2" face="serif">Other reserve</font></td>
<td align="left">&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"><font size="2" face="serif">(31</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr>
<td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Profit and loss account</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">390</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">2,448</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
<td><hr noshade size="1"></td>
<td></td>
</tr>
<tr 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"><font size="2" face="serif"><b>2,554</b></font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"><b>5,335</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr>
<td colspan="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
<td><hr noshade size="2"></td>
<td></td>
</tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1" face="serif">*</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td colspan="11" align="left"><font size="1" face="serif">Restated on the
        adoption of UITF 38 and the reclassification of pension provisions (see
        note 1).</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<br>
<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 FINANCIAL STATEMENTS</b></font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr valign="top" bgcolor="#ffffff">
<td width="3%" align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>1.</b></font></td>
<td align="left"><font size="2" face="serif"><b>Basis of preparation</b></font></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><p><font size="2" face="serif">The preliminary financial statements comply with applicable accounting standards under UK GAAP and should be read in conjunction with the Six Continents PLC Annual Report and Financial Statements 2002.  They have been prepared using the accounting policies set out in that report on a consistent basis with that applied in 2002, except in respect of shares held in ESOP trusts and reclassification of pension provisions as detailed below.</font></p>
  <p><font size="2" face="serif">Urgent Issues Task Force (UITF) Abstract 38 &#8216;Accounting
      for ESOP Trusts&#8217; was adopted for the first time this period. UITF 38
      requires that ESOP shares should be deducted from shareholders&#8217; funds
      rather than being shown as an asset. This change in accounting policy has been
      accounted for as a prior year adjustment and previously reported figures have
      been restated accordingly. The effect has been to decrease the Group&#8217;s
      net assets by &pound;31m in 2002 with no impact on the profit and loss account.</font></p>
  <p><font size="2" face="serif">Pension provisions previously included in debtors
          and creditors &#150; amounts falling due after one year have been reclassified within other provisions for liabilities and charges.  Prior year comparatives have been restated.  There has been no overall impact on the Group&#8217;s
      net assets or profit and loss account.</font></p>
  <p><font size="2" face="serif"><b>Separation transaction</b></font></p>
  <p><font size="2" face="serif">On 15 April 2003, following shareholder and
          regulatory approval, Six Continents PLC separated into two new listed
          groups, InterContinental Hotels Group PLC
          (IHG) comprising the Hotels and Soft Drinks businesses and Mitchells &amp; Butlers
          plc (MAB) comprising the Retail and Standard Commercial Property Developments
          (SCPD) businesses. The mechanics of the Separation are detailed below.</font></p>  <p><font size="2" face="serif">The legal structure of the transaction was such
    that Mitchells &amp; Butlers plc acquired 100% of the issued share capital of Six Continents PLC following implementation of a Court approved Scheme of Arrangement under Section 425 of the Companies Act 1985.  Shareholders of Six Continents PLC were allotted one Mitchells &amp; Butlers plc share and an entitlement to a cash payment of 81p per share for each Six Continents PLC share held.  This resulted
    in the issue of 866,665,032 Mitchells &amp; Butlers plc ordinary shares of &pound;4.20 each plus an undertaking to pay &pound;702m
    in cash.</font></p>
  <p><font size="2" face="serif">On 12 April 2003, Six Continents PLC transferred
      the Retail and SCPD businesses to Mitchells &amp; Butlers plc for &pound;1,744m and also paid a dividend to Mitchells &amp; Butlers
      plc of the same amount.</font></p>
  <p><font size="2" face="serif">On 13 April 2003, the ordinary share capital of
    Mitchells &amp; Butlers plc was sub-divided and  consolidated on a 50 to 59 basis which resulted in a reduction of the number of ordinary shares in issue to 734,461,900 with each share having a nominal value of &pound;4.956.</font></p>  <p><font size="2" face="serif">On 15 April 2003, Mitchells &amp; Butlers plc investment in Six
      Continents PLC was revalued to its market value.  On the same day, the Court approved a reduction in the capital of Mitchells &amp; Butlers
      plc. An amount equivalent to the market value of Six Continents PLC was returned
      to shareholders by the transfer of Six Continents PLC to InterContinental
      Hotels Group PLC and the issue by InterContinental Hotels Group PLC of ordinary
      shares
    to the shareholders.</font></p></td>
</tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2"><div style="page-break-before:always"></div>
<page>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left"><p><font size="2" face="serif">The Company issued 734,461,900
          ordinary &pound;1 shares, which were recorded at nominal value. In accordance
          with Sections 131 and 133 of the Companies Act 1985, no premium was recognised
          on the shares issued. On consolidation, the difference between the nominal
          value of the Company&#8217;s shares issued and the amount of the share
          capital, share premium and capital redemption reserve of &pound;1,164m
          at the date of Separation has been credited to the merger reserve.</font></p>
      <p><font size="2" face="serif">          <b>Merger Accounting</b></font></p>
      <p><font size="2" face="serif">          The consolidated financial statements
          have been prepared in accordance with the principles of merger accounting
          as applicable to group reorganisations as set out in Financial Reporting
          Standard (FRS) 6 &#8216;Acquisitions and Mergers&#8217; as if the Group
          had been in existence throughout the periods presented. The financial
          statements have been prepared under merger accounting principles in
          order to present a true and fair view of the Group&#8217;s results
          and financial position, which has required the Group to utilise the
      overriding requirement of Section 227(6) of the Companies Act 1985.</font></p>
      <p><font size="2" face="serif">          The true and fair override requirement
          has been utilised as the Separation transaction has been accounted
          for using merger accounting principles as applicable to group reorganisations,
          although it does not satisfy all the conditions required under Schedule
          4A of the Companies Act 1985 and FRS 6. Mitchells &amp; Butlers plc
          acquired Six Continents PLC for consideration that included a non-share
          element equivalent to more than 10% of the nominal value of the share
          element of the consideration. Schedule 4A and FRS 6 require such transfers
          to be accounted for using acquisition accounting principles which would
          have resulted in the restatement at fair value of the assets and liabilities
          acquired, the recognition of goodwill and the consolidation of post
          acquisition results only. In the opinion of the directors, as the rights
          of shareholders were not affected by these internal company transfers,
          the financial statements would fail to give a true and fair view of
          the Group&#8217;s results and financial position if acquisition accounting
      had been used. The effects of this departure cannot reasonably be quantified.</font></p>
      <p><font size="2" face="serif">        The consolidated financial statements
          are therefore presented as if the Company had been the parent company
          of the Group throughout the periods presented. The results of Mitchells &amp; Butlers
          plc have been included in discontinued operations for all years up
      until the date of Separation.</font></p></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif"><b>2.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Exchange rates</b></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</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"><p><font size="2" face="serif">The results of overseas operations
          have been translated into sterling at weighted average rates of exchange
          for the period. In the case of the US dollar, the translation rate
          is &pound;1=$1.62
          (2002 &pound;1=$1.48). In the case of the euro, the translation rate
          is &pound;1 = &euro; 1.47 (2002 &pound;1 = &euro; 1.60).</font></p>
      <p><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=$1.78 (2002 &pound;1=$1.56). In the
          case of the euro, the translation rate is &pound;1 = &euro; 1.41 (2002 &pound;1
          = &euro; 1.59).</font></p></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#ffffff">
    <td width="3%" align="left"><font size="2" face="serif"><b>3.</b></font></td>
    <td colspan="16" align="left"><font size="2" face="serif"><b>Turnover</b></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="16" align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="16" align="left"><font size="2" face="serif">During the year
        IHG undertook a fundamental review of the Hotels organisation. Following
        this review, management in the Regions now concentrates on the key revenue
        and profit drivers of the regional businesses, whilst key global functions
        have been centralised to maximise the benefits of our scale and drive
        process efficiencies. As a result of these changes, the segmental analysis
        presented below has been restated to reflect the new organisational structures.</font></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months</b></font><br>
        </font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1" face="serif"><b>*<br>
    </b></font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
        <font face="serif"><b>12 months</b></font><br>
        </font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1" face="serif"><b>*</b></font></td>
  </tr>
  <tr>
    <td align="left"><div align="right"><font size="1">&nbsp;</font></div></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><div align="right"><font size="1">&nbsp;</font></div></td>
    <td align="left" bgcolor="#FFFFFF"><div align="right"><font size="1" face="serif"><b>&pound;m </b></font></div></td>
    <td align="left" bgcolor="#FFFFFF"><div align="right"><font size="1">&nbsp;</font></div></td>
    <td align="left" bgcolor="#FFFFFF"><div align="right"><font size="1" face="serif"><b>&pound;m</b></font></div></td>
    <td align="left" bgcolor="#FFFFFF"><div align="right"><font size="1">&nbsp;</font></div></td>
  </tr>
  <tr>
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Americas</font></td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">661</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">570</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">EMEA</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">1,010</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">794</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Asia Pacific</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">148</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">128</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Corporate</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">51</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">40</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,870</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,532</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Soft Drinks</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">820</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">602</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">InterContinental
        Hotels Group PLC**</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">2,690</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">2,134</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Discontinued operations**</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">793</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">1,481</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,483</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>3,615</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">*</font></td>
    <td colspan="7" align="left"><font size="1" face="serif">Other than for Soft
        Drinks which reflects the 64 weeks ended 20 December (2002 52 weeks ended
        28 September) and Mitchells &amp; Butlers plc which reflects the 28 weeks
        ended 12 April (2002 52 weeks ended 28 September).</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">**</font></td>
    <td colspan="7" align="left"><font size="1" face="serif">InterContinental
        Hotels Group PLC relates to continuing operations. Discontinued operations
        relate to Mitchells &amp; Butlers plc.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#ffffff">
    <td width="3%" align="left"><font size="2" face="serif"><b>4.</b></font></td>
    <td colspan="22" align="left"><font size="2" face="serif"><b>Profit</b></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td colspan="22" align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="22" align="left"><font size="2" face="serif">During the year
        IHG undertook a fundamental review of the Hotels organisation. Following
        this reorganisation, management in the Regions now concentrates on the
        key revenue and profit drivers of the regional businesses, whilst key
        global functions have been centralised to maximise the benefits of our
        scale and drive process efficiencies. As a result of these changes, the
        segmental analysis presented below has been restated to reflect the new
        organisational structures.</font></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right" valign="bottom">&nbsp;</td>
    <td colspan="2" align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>*</b></font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
        <font face="serif"><b>12 months</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>*</b></font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan="2" align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Operating profit before
          exceptional items</b></font><font size="1"><br>
      <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Profit on ordinary activities
          before interest</b></font><font size="1"><br>
      <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b><br>
          <br>
          <br>
    </b></font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Operating profit
          before exceptional items</b></font><font size="1"><br>
      <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>Profit on ordinary
          activities before interest</b></font><font size="1"><br>
      <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b><br>
&nbsp;<br>
<br>
</b></font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Hotels</font></td>
    <td width="8%" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td width="8%" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" align="right">&nbsp;</td>
    <td width="3%" align="left" bgcolor="#EEEEEE"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#EEEEEE"><font size="2" face="serif">Americas</font></td>
    <td width="8%" align="right" bgcolor="#EEEEEE"><font size="2" face="serif">195</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#EEEEEE"><font size="2" face="serif">176</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#EEEEEE"><font size="2" face="serif">173</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#EEEEEE"><font size="2" face="serif">127</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">EMEA</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">114</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">50</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">125</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">110</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td align="left" bgcolor="#EEEEEE"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#EEEEEE"><font size="2" face="serif">Asia Pacific</font></td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">22</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">19</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">23</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">9</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Corporate</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(80</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(215</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(55</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(59</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#EEEEEE"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">251</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">30</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">266</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">187</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Soft Drinks</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">95</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">95</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">63</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">63</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#EEEEEE"><font size="2" face="serif">InterContinental
        Hotels Group PLC**</font></td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">346</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">125</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">329</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif">250</font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Discontinued operations**</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">137</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">94</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">289</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">344</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
    <td colspan="2" align="left" bgcolor="#EEEEEE"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif"><b>483</b></font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif"><b>219</b></font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif"><b>618</b></font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
    <td align="right" bgcolor="#EEEEEE"><font size="2" face="serif"><b>594</b></font></td>
    <td align="left" bgcolor="#EEEEEE">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">*</font></td>
    <td colspan="22" align="left"><font size="1" face="serif">Other than for
        Soft Drinks which reflects the 64 weeks ended 20 December (2002 52 weeks
        ended 28 September) and Mitchells &amp; Butlers plc which reflects the
        28 weeks ended 12 April (2002 52 weeks ended 28 September).</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">**</font></td>
    <td colspan="22" align="left"><font size="1" face="serif">InterContinental
        Hotels Group PLC relates to continuing operations. Discontinued operations
        relate to Mitchells &amp; Butlers plc and in 2002 also included a profit
        on disposal of Bass Brewers of &pound;57m.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left" valign="top"><font size="2" face="serif"><b>5.</b></font></td>
    <td colspan="2" align="left" valign="top" bgcolor="#ffffff"><font size="2" face="serif"><b>Exceptional items</b></font></td>
    <td align="right" valign="top" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#ffffff">&nbsp;</td>
    <td align="left" valign="top" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#ffffff">&nbsp;</td>
    <td align="left" valign="top" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td colspan="2" align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" valign="top" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan="2" align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
    <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
    <font face="serif"><b>12 months</b></font></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#FFFFFF"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td align="left" valign="bottom" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Operating exceptional
          item:</b></font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Continuing operations &#150; Hotels
        impairment charge (note a)</font></td>
    <td width="2%" align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(51</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(77</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">) </font></td>
  </tr>
  <tr>
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif"><b>Non-operating
          exceptional items:</b></font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Continuing operations:</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Cost of fundamental
        reorganisation (note b)</font></td>
    <td align="right" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(67</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff">&#8212;</td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Separation costs
        (note c)</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(51</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(4</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Profit on disposal
        of fixed assets</font></td>
    <td align="right" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">4</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">2</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Provision against
        fixed asset investments (note d)</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(56</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee">&#8212;</td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(170</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(2</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Discontinued operations:*</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Separation costs
        (note c)</font></td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(41</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#FFFFFF">&#8212;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Loss on disposal
        of fixed assets</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(2</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(2</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Profit on disposal
        of Bass Brewers (note e)</font></td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&#8212;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">57</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(43</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">55</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Total non-operating
        exceptional items</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(213</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">53</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Total exceptional
          items before interest and taxation</b></font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(264</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(24</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Premium on early
        settlement of debt (note f)</font></td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(136</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#FFFFFF">&#8212;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Tax credit/(charge)
        on above items</font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">64</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(9</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">) </font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Exceptional tax
        credit (note g)</font></td>
    <td align="right" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF">&#8212;</td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">114</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Total exceptional
          items after interest and taxation</b></font></td>
    <td align="right" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(336</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>81</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td>&nbsp;</td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">a.</font></td>
    <td align="left"><font size="1" face="serif">Tangible fixed assets
        were written down by &pound;73m (2002 &pound;113m) following an impairment
        review of the hotel estate. &pound;51m (2002 &pound;77m) was charged
        above as an operating exceptional item and &pound;22m (2002 &pound;36m)
        reversed previous revaluation gains.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">b.</font></td>
    <td align="left"><font size="1" face="serif">Relates to a fundamental
        reorganisation of the Hotels business. The cost includes redundancy entitlements,
        property exit costs and other implementation costs.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">c.</font></td>
    <td align="left"><font size="1" face="serif">On 15 April 2003,
        the Separation of Six Continents PLC was completed. Costs of the Separation
        and bid defence total &pound;96m. &pound;4m of costs were incurred in
        the year to 30 September 2002, the remainder in the period to 31 December
        2003.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">d.</font></td>
    <td align="left"><font size="1" face="serif">Relates to a provision
        for diminution in value of the Group&#8217;s investment in FelCor Lodging
        Trust Inc. and other fixed asset investments and reflects the directors&#8217; view
        of the fair value of the holdings.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">e.</font></td>
    <td align="left"><font size="1" face="serif">Bass Brewers was
        disposed of in 2000. The profit in 2002 comprised &pound;9m received
        in respect of the finalisation of completion account adjustments, together
        with the release of disposal provisions no longer required of &pound;48m.</font></td>
  </tr>
  <tr valign="middle" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">f.</font></td>
    <td align="left"><font size="1">Relates to the premiums paid on the repayment
        of the Group&#8217;s
      &pound;250m 10<sup>3</sup>/<sub>8</sub> per cent debenture and EMTN loans.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">g.</font></td>
    <td align="left"><font size="1" face="serif">Represents the release of over
    provisions for tax in respect of prior years. </font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">*</font></td>
    <td align="left"><font size="1" face="serif">Discontinued operations relate
    to Mitchells &amp; Butlers plc and Bass Brewers.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif"><b>6.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Net interest</b></font></td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td 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" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
        <font face="serif"><b>12 months</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td width="3%" align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <td width="2%" align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td width="8%" align="right" valign="bottom"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td width="2%" align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td width="8%" align="right" valign="bottom"><font size="1" face="serif"><b>&pound;m</b></font></td>
    <td width="2%" align="left" valign="bottom"><font size="1">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Interest receivable</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">104</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">116</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">Interest payable and similar
        charges</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(151</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(176</font></td>
    <td align="left"><font size="2" face="serif">) </font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr 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"><font size="2" face="serif"><b>(47</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right"><font size="2" face="serif"><b>(60</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td align="left" valign="top"><font size="2" face="serif"><b>7.</b></font></td>
    <td colspan="10" align="left" valign="top"><font size="2" face="serif"><b>Tax on profit
          on ordinary activities</b></font></td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left" valign="bottom">&nbsp;</td>
    <td colspan="2" align="left" valign="bottom">&nbsp;</td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months </b></font></font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
        <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
        <font face="serif"><b>12 months</b></font></font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left" valign="bottom"><font size="1" face="serif">&nbsp;</font></td>
    <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"><font face="serif"><b>Before exceptional
            items</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1"><font face="serif"><b>Exceptional</b></font><br>
        <font face="serif"><b>items</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1"><font face="serif"><b>Total</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1"><font face="serif"><b>Total</b></font><br>
        <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Current tax:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">UK corporation tax
        at 30% (2002 30%)</font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="8%" align="right"><font size="2" face="serif">(38</font></td>
    <td width="2%" align="left"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right"><font size="2" face="serif">(38</font></td>
    <td width="2%" align="left"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right"><font size="2" face="serif">(76</font></td>
    <td width="2%" align="left"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right"><font size="2" face="serif">(23</font></td>
    <td width="2%" align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr 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">Foreign tax</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">52</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(3</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">49</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">64</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr 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"><font size="2" face="serif">14</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(41</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(27</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">41</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#ffffff">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Deferred tax</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">33</font></td>
    <td align="left">&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"><font size="2" face="serif">10</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">11</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr 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"><font size="2" face="serif"><b>47</b></font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif"><b>(64</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right"><font size="2" face="serif"><b>(17</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right"><font size="2" face="serif"><b>52</b></font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Further analysed
        as tax relating to:</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#eeeeee">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Profit before exceptional
        items</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">47</font></td>
    <td align="left">&nbsp;</td>
    <td align="right">&#8212;</td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">47</font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">157</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left"><font size="2" face="serif">Exceptional items
        (note 5):</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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">Non-operating</font></td>
    <td align="left">&nbsp;</td>
    <td align="right">&#8212;</td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(64</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">(64</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
    <td align="right"><font size="2" face="serif">9</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr 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">Tax credit</font></td>
    <td align="left">&nbsp;</td>
    <td align="right">&#8212;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&#8212;</td>
    <td align="left">&nbsp;</td>
    <td align="right">&#8212;</td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif">(114</font></td>
    <td align="left"><font size="2" face="serif">)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr 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"><font size="2" face="serif"><b>47</b></font></td>
    <td align="left">&nbsp;</td>
    <td align="right"><font size="2" face="serif"><b>(64</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right"><font size="2" face="serif"><b>(17</b></font></td>
    <td align="left"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right"><font size="2" face="serif"><b>52</b></font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="2" face="serif"><b>8.</b></font></td>
    <td colspan="5" align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>Earnings
          per ordinary share</b></font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td colspan="6" align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="6" align="left" bgcolor="#FFFFFF"><p><font size="2" face="serif">Basic
          earnings per ordinary share is calculated by dividing the earnings
          available for shareholders of &pound;19m (2002 &pound;457m) by 733m
          (2002 731m), being the weighted average number of ordinary shares,
          excluding investment in own shares, in issue during the period. The
          weighted average number of shares in issue has been based on the aggregate
          of the weighted average number of shares of InterContinental Hotels
          Group PLC and Six Continents PLC adjusted to equivalent shares of InterContinental
          Hotels Group PLC. The comparatives have been restated accordingly.</font></p>
        <p><font size="2" face="serif"> Diluted earnings per ordinary share is
            calculated by adjusting basic earnings per ordinary share to reflect
            the notional exercise of the weighted average number of dilutive
            ordinary share options outstanding during the period. The resulting
            weighted average number of ordinary shares is 733m (2002 734m).</font></p>
        <p><font size="2" face="serif">                    Adjusted earnings
            per ordinary share is calculated as follows:</font></p></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font></font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>12 months</b></font><br>
          <font face="serif"><b>restated</b></font></font></td>
    <td width="2%" align="left" bgcolor="#FFFFFF"><font size="1" face="serif"><b><br>
          <br>
*</b></font></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>pence
          per ordinary share</b></font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="1" face="serif"><b>pence
          per ordinary share</b></font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="middle" bgcolor="#eeeeee"><font size="2">Basic earnings</font></td>
    <td width="2%" align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" valign="middle" bgcolor="#eeeeee"><font size="2" face="serif">2.6</font></td>
    <td width="2%" align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" valign="middle" bgcolor="#eeeeee"><font size="2" face="serif">62.5</font></td>
    <td align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="middle" bgcolor="#ffffff"><font size="2">Exceptional items, less
        tax thereon (notes 5, 7)</font></td>
    <td align="left" valign="middle" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" valign="middle" bgcolor="#ffffff"><font size="2" face="serif">45.8</font></td>
    <td align="left" valign="middle" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" valign="middle" bgcolor="#ffffff"><font size="2" face="serif">(11.1</font></td>
    <td align="left" valign="middle" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td valign="middle"><font size="2">&nbsp;</font></td>
    <td valign="middle"></td>
    <td valign="middle"><hr noshade size="1">
    </td>
    <td valign="middle"></td>
    <td valign="middle"><hr noshade size="1">
    </td>
    <td valign="middle"></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="middle" bgcolor="#eeeeee"><b><font size="2">Adjusted earnings</font></b></td>
    <td align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" valign="middle" bgcolor="#eeeeee"><font size="2" face="serif"><b>48.4</b></font></td>
    <td align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" valign="middle" bgcolor="#eeeeee"><font size="2" face="serif"><b>51.4</b></font></td>
    <td align="left" valign="middle" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td></td>
    <td><font size="2">&nbsp;</font></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="5" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Adjusted
        earnings per ordinary share is disclosed in order to show performance
        undistorted by exceptional items. </font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left"><font size="1" face="serif">*</font></td>
    <td colspan="5" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">Restated
        to exclude all exceptional items for comparability with 2003 disclosures.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td align="left"><font size="2" face="serif"><b>9.</b></font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>Net cash
          flow</b></font></td>
    <td align="left" 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="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="1" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>12 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="middle">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating
          profit before exceptional items</b></font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>483</b></font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>618</b></font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Depreciation
        and amortisation</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">303</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">271</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Earnings
          before interest, taxation, depreciation and amortisation and exceptional
          items</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>786</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>889</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Other non-cash
        items</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(2</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(4</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Increase in
        stocks</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(1</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(1</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Increase in
        debtors</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(10</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(92</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Increase/(decrease)
        in creditors</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">69</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(37</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Provisions
        expended</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(10</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(18</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating
          activities before expenditure relating to exceptional items</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>832</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>737</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Cost of fundamental
        reorganisation</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(37</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff">&#8212;</td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Operating
        exceptional expenditure</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee">&#8212;</td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(17</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating
          activities</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>795</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>720</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Net capital
        expenditure (note 10)</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(248</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(513</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Operating
          cash flow (note 11)</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>547</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>207</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td align="left"><font size="2" face="serif"><b>10.</b></font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>Net capital
          expenditure</b></font></td>
    <td align="left" 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="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <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"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>12 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Hotels</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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="middle">
    <td width="3%" align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"> Americas</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(42</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">92</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"> EMEA</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">103</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">121</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"> Asia Pacific</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">37</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">4</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"> Corporate</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">24</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">39</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">122</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">256</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Soft Drinks</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">65</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">31</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">InterContinental
        Hotels Group PLC*</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">187</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">287</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Discontinued
        operations*</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">61</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">226</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>248</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>513</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left"><font size="1" face="serif">*</font></td>
    <td colspan="5" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">InterContinental
        Hotels Group PLC relates to continuing operations. Discontinued operations
        relate to Mitchells &amp; Butlers plc.</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<br>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="2" face="serif"><b>11.</b></font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>Operating
          cash flow</b></font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>12 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Hotels</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">336</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(15</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Soft Drinks</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">59</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">77</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">InterContinental
        Hotels Group PLC*</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">395</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">62</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Discontinued
        operations*</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">152</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">145</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>547</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>207</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="left"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left"><font size="1" face="serif">*</font></td>
    <td colspan="5" align="left" bgcolor="#FFFFFF"><font size="1" face="serif">InterContinental
        Hotels Group PLC relates to continuing operations. Discontinued operations
        relate to Mitchells &amp; Butlers plc.</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left" valign="top"><font size="2" face="serif"><b>12.</b></font></td>
    <td colspan="2" align="left" valign="top" bgcolor="#ffffff"><font size="2" face="serif"><b>Net
          debt</b></font></td>
    <td align="left" 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="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" align="left" valign="top"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" valign="top" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2003</b></font><font size="1"><br>
          <font face="serif"><b>15 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>12 months</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Opening
        net debt</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(1,177</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">(1,001</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Net
        cash flow (note 9)</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(22</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(305</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Debt
        assumed by MAB</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">577</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee">&#8212;</td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Ordinary
        shares issued by InterContinental Hotels Group PLC and Six Continents
        PLC respectively</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">18</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">3</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Separation
        of MAB</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(10</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee">&#8212;</td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#ffffff"><font size="2" face="serif">Exchange
        and other adjustments</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">45</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">126</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>Closing
          net debt</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(569</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(1,177</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Comprising:</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Cash
        at bank and in hand</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">55</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">84</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Overdrafts</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(5</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(66</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">Current
        asset investments</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">377</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">218</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Other
        borrowings:</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Due
        within one year</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(8</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(782</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Due
        after one year</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(988</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">(631</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td colspan="2" align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(569</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>(1,177</b></font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"><b>)</b></font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan="2"></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left" valign="top"><font size="2" face="serif"><b>13.</b></font></td>
    <td align="left" valign="top" bgcolor="#ffffff"><font size="2" face="serif"><b>Net
          assets</b></font></td>
    <td align="left" valign="top" 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="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" align="left" valign="top"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="top" bgcolor="#ffffff"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" valign="top" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b><br>
      2003</b></font><font size="1"><br>
      <font face="serif"><b>31 Dec</b></font><br>
      <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#ffffff"><font size="1" face="serif"><b>2002</b></font><font size="1"><br>
          <font face="serif"><b>30 Sept</b></font><br>
          <font face="serif"><b>restated</b></font><br>
          <font face="serif"><b>&pound;m</b></font></font></td>
    <td align="left" bgcolor="#ffffff"><font size="1" face="serif"><b><br>
      *</b></font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Hotels</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" 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="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"> Americas</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">859</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#eeeeee"><font size="2" face="serif">1,134</font></td>
    <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif"> EMEA</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">2,422</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">2,502</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif"> Asia
        Pacific</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">457</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">448</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">3,738</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">4,084</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#ffffff"><font size="2" face="serif">Soft
        Drinks</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">300</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
    <td align="right" bgcolor="#ffffff"><font size="2" face="serif">246</font></td>
    <td align="left" bgcolor="#ffffff">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">InterContinental
        Hotels Group PLC**</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">4,038</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">4,330</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Discontinued
        operations**</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee">&#8212;</td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">3,493</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">4,038</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">7,823</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Net
        debt</font></td>
    <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(569</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">(1,177</font></td>
    <td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">Other
        net non-operating liabilities</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(915</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif">(1,311</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">)</font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
    <td><hr noshade size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="middle">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>2,554</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
    <td align="right" bgcolor="#eeeeee"><font size="2" face="serif"><b>5,335</b></font></td>
    <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td></td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
    <td><hr noshade size="2">
    </td>
    <td></td>
  </tr>
</table>
<br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td width="3%" align="left"><font size="1">&nbsp;</font></td>
    <td width="3%" align="left"><font size="1" face="serif">*</font></td>
    <td colspan="8" align="left"><font size="1" face="serif">Restated on the
        adoption of UITF 38 (see note 1).</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1" face="serif">**</font></td>
    <td colspan="8" align="left"><font size="1" face="serif">InterContinental
        Hotels Group PLC relates to continuing operations. Discontinued operations
        relate to Mitchells &amp; Butlers plc.</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top" bgcolor="#ffffff">
    <td width="3%" align="left" bgcolor="#ffffff"><font size="2" face="serif"><b>14.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Pensions</b></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</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"><p><font size="2" face="serif">On 1 April 2003, two new
          pension schemes were created for InterContinental Hotels Group PLC
          in the UK when Mitchells &amp; Butlers Retail Limited became the sponsoring
          employer for the Six Continents Pension Plan and the Six Continents
          Executive Pension Plan. Approximately 30% of the assets and liabilities
          of these plans was transferred to the new InterContinental Hotels UK
          Pension Plan and the Britvic Pension Plan, which were established with
          effect from 1 April 2003.</font></p>
        <p><font size="2" face="serif"> The Group continues to account for pensions
            under SAAP 24 &#8216;Accounting for pension costs&#8217;. FRS 17 &#8216;Retirement
            benefits&#8217; requires additional disclosures in the notes to the
            accounts including the surplus or deficit in the pension schemes
            measured on a market value basis at the balance sheet date. At 31
            December 2003, the FRS 17 deficit in the Group&#8217;s pension schemes
            was &pound;176m (2002 &pound;370m), reduced to &pound;118m (2002 &pound;254m)
            after tax.</font></p>
    </td>
  </tr>
</table>
<br>
<br>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top" bgcolor="#ffffff">
    <td width="3%" align="left"><font size="2" face="serif"><b>15.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Contingent liabilities</b></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</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">At 31 December 2003, the Group
        had contingent liabilities of &pound;11m (2002 &pound;16m), mainly comprising
        guarantees given in the ordinary course of business.</font></td>
  </tr>
</table>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr bgcolor="#ffffff">
    <td width="3%" align="left"><font size="2" face="serif"><b>16.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Group financial statements</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="serif">This preliminary statement of
        results was approved by the Board on 10 March 2004. It does not represent
        the full Group financial statements of InterContinental Hotels Group
        PLC and its subsidiary undertakings which will be delivered to the Registrar
        of Companies in due course. Other than the restatements referred to in
        note 1 above, the financial information for the year ended 30 September
        2002 has been extracted from the Six Continents PLC published financial
        statements for that year as filed with the Registrar of Companies.</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif"><b>17.</b></font></td>
    <td align="left"><font size="2" face="serif"><b>Auditors&#8217; review</b></font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="serif">The auditors, Ernst &amp; Young
        LLP, have given an unqualified report under Section 235 of the Companies
        Act 1985, as amended, in respect of the full Group financial statements
    for both years referred to above.</font></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left"><hr align="left" width="100" size="1" noshade></td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left"><p><font size="2" face="serif">This announcement of the
          preliminary results for the 15 months ended 31 December 2003 contains
          certain forward-looking statements as defined under US legislation
          (Section 21E of the Securities Exchange Act of 1934) with respect to
          the financial condition, results of operations and business of InterContinental
          Hotels Group and certain plans and objectives of the board of directors
          of InterContinental Hotels Group with respect thereto. Such statements
          include, but are not limited to, statements made in the Chairman&#8217;s
          statement and the Executive Directors&#8217; Review. These forward-looking
          statements can be identified by the fact that they do not relate only
          to historical or current facts. Forward-looking statements often use
          words such as &#8216;anticipate&#8217;, &#8216;target&#8217;, &#8216;expect&#8217;, &#8216;estimate&#8217;, &#8216;intend&#8217;, &#8216;plan&#8217;, &#8216;goal&#8217;, &#8216;believe&#8217;,
          or other words of similar meaning. These statements are based on assumptions
          and assessments made by InterContinental Hotels Group&#8217;s management
          in light of their experience and their perception of historical trends,
          current conditions, expected future developments and other factors
          they believe to be appropriate.</font></p>
<p><font size="2" face="serif"> By their nature, forward-looking statements
            are inherently predictive, speculative and involve risk and uncertainty.
            There are a number of factors that could cause actual results and
            developments to differ materially from those expressed, in or implied
            by, such forward-looking statements, including, but not limited to:
            events that impact domestic or international travel; levels of consumer
            and business spending in major economies where InterContinental Hotels
            Group does business; changes in consumer tastes and preferences;
            levels of marketing and promotional expenditure by InterContinental
            Hotels Group and its competitors; changes in the cost and availability
            of raw materials, key personnel and changes in supplier dynamics;
            significant fluctuations in exchange, interest and tax rates; the
            availability and effects of future business combinations, acquisitions
            or dispositions; the impact of legal and regulatory actions or developments;
            the impact of the European Economic and Monetary Union; the ability
            of InterContinental Hotels Group to maintain appropriate levels of
            insurance; exposures relating to franchise or management contract
            operations; the maintenance of InterContinental Hotels Group&#8217;s
            IT structure, including its centralised reservation system; the development
            of new and emerging technologies; competition in the markets in which
            InterContinental Hotels Group operates; political and economic developments
            and currency exchange fluctuation; economic recession; management
            of InterContinental Hotels Group&#8217;s indebtedness and capital
            resource requirements; material litigation against InterContinental
            Hotels Group; substantial trading activity in InterContinental Hotels
            Group shares; the reputation of InterContinental Hotels Group&#8217;s
            brands; the level of costs associated with leased properties; and
            the weather.</font></p>
        <p><font size="2" face="serif"> Other factors that could affect the business
            and the financial results are described in Item 3 Key Information &#150; Risk
            Factors in the Six Continents Form 20-F for the financial year ended
            30 September 2002 filed with the United States Securities and Exchange
            Commission.</font></p>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>b742577ex99-2.htm
<TEXT>
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<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF"> <p align="right"><font size="2" face="serif"><b>Exhibit 99.2</b></font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p align="center"><font size="2" face="serif"><b>InterContinental Hotels Group PLC</b></font></p>
<p align="center"><font size="2" face="serif"><b>Britannia Soft Drinks &#150; Signing of Agreements</b></font></p>
<p align="left"><font size="2" face="serif">InterContinental Hotels Group PLC (&#8220;IHG&#8221;) is pleased to announce that its soft drinks subsidiary, Britannia Soft Drinks Limited (&#8220;BSD&#8221;), has signed agreements with PepsiCo, Inc. (&#8220;PepsiCo&#8221;) that secure new long-term Exclusive Bottling Agreements. BSD&#8217;s existing shareholders have also signed an agreement with BSD and PepsiCo which creates an opportunity to undertake an initial public offering (&#8220;IPO&#8221;) of BSD.</font></p>
<p align="left"><font size="2" face="serif"><b>Renewal of Exclusive Bottling Agreement</b></font></p>
<p align="left"><font size="2" face="serif">BSD has successfully renewed its Exclusive Bottling Agreement with PepsiCo on broadly similar terms to those of the current agreement. This maintains BSD&#8217;s exclusive rights in the Great Britain to the Pepsi and 7UP brands. The agreement has a term of 15 years and will be automatically extended by a further 5 years on IPO.</font></p>
<p align="left"><font size="2" face="serif"><b>Opportunity for Initial Public Offering</b></font></p>
<p align="left"><font size="2" face="serif">BSD&#8217;s existing shareholders have agreed to exchange PepsiCo&#8217;s 10% shareholding in Britvic Holdings Limited, a subsidiary of BSD, for a 5% share in BSD.  The existing shareholders will reduce their holdings in BSD on a pro rata basis.</font></p>
<p align="left"><font size="2" face="serif">The ownership of BSD is now as follows:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">InterContinental Hotels Group&nbsp;</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="22%" align="right"><font size="2" face="serif">47.50</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">Allied Domecq </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">23.75</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">Whitbread</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">23.75</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">PepsiCo&nbsp;&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">5.00</font></td>
<td align="left"><font size="2" face="serif">%</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">BSD&#8217;s shareholders have also agreed subject, inter alia, to market conditions, to consider an initial public offering of BSD,  between 1 January 2005 and 31 December 2008. </font></p>
<p align="left"><font size="2" face="serif">IHG will continue to control and consolidate BSD.</font></p>
<p align="left"><font size="2" face="serif">Richard North, chief executive of IHG and chairman of BSD said, &#8220;This is great news for Britvic, its employees, owners and customers.  Renewal of the bottling agreement with PepsiCo ensures a steady stream of revenue, assuring Britvic's long term future.&#8221;</font></p>
<p align="left"><font size="2" face="serif">He continued,  &#8220;The option to IPO the business is great news for IHG as it offers us the opportunity, should market conditions allow,  to realise in full a very valuable asset and enable us to focus entirely on hotels.&#8221;</font></p>
<p align="center"><font size="2" face="serif">-ends-</font></p>
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<div style="page-break-before:always"></div>
<page>
<p><a name="p?"></a>    </p>
<p>&nbsp;</p>
<p align="left"><font size="2" face="serif">For further information , please contact:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Karen Whitworth, Investor Relations</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="31%" align="right"><font size="2" face="serif">+44 (0)1753 410177</font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Dee Cayhill, Corporate Affairs</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">+44 (0)1753 410423</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">Kathryn Holland, Corporate Affairs</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">+44 (0)1753 410425</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="left"><font size="2" face="serif"><b>Notes to Editors:</b></font></p>
<p align="left"><font size="2" face="serif">Prior to the introduction of the new agreements, BSD&#8217;s shareholders were IHG (50% plus one share), Allied Domecq (25% less half a share) and Whitbread (25% less half a share).  BSD in turn owned 90% of Britvic Holdings Ltd, with the remaining 10% (having a net asset value of &pound;22.9 million) held by PepsiCo. </font></p>
<p align="left"><font size="2" face="serif">Diagrams of the previous and new structures of Britannia Soft Drinks are available on our website at <u>http://www.ihgplc.com/britannia</u> .</font></p>
<p align="left"><font size="2" face="serif">The Britvic Group is the second largest manufacturer of soft drinks, by volume, in the UK. The Britvic Group owns an impressive portfolio of soft drinks that includes Robinsons, Tango, Britvic (juice and mixers), R Whites, Ame, J2O, Purdey&#8217;s and Aqua Libra and the exclusive rights in perpetuity to Red Devil (in the UK and the Republic of Ireland.) The Group also holds the exclusive franchise rights in Great Britain for the Pepsi and 7UP brands.</font></p>
<p align="left"><font size="2" face="serif">The franchise has historically been very successful with Pepsi brand volume having trebled from 172 million litres in 1987 to 580 million litres in 2003 making Great Britain one of PepsiCo&#8217;s most successful regions for its Pepsi and 7UP brands. BSD believes there is significant scope for further growth from the partnership with PepsiCo under the new agreements.</font></p>
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