Capital Reorganisation

Monteagle Holdings Société Anonyme                       

           (Incorporated in Luxembourg - RC Luxembourg No. B 19600)            

                                ('the Company')                                

Registered Office

6 rue Adolphe Fischer,

L-1520, Luxembourg

                            Cancellation of Shares                             

Following the holding of the Company's Annual General Meeting in Luxembourg,
the 236,542 shares of US$1.50 each in the Company that were held in treasury
have been cancelled with effect from 14th April 2004.

In 1999 the Company received shareholder approval to purchase up to 653,650 of
its own shares and it subsequently purchased 236,543 shares, which were then
held in treasury. At the time of the transaction it was stated that the shares
would be held in treasury pending resale or, failing which, a reduction of
capital and cancellation of the shares so bought. The Directors decided that
the shares should be cancelled and a resolution was proposed at the Annual
General Meeting to deal with the cancellation and the subsequent amendment of
Article 6.2 of the Company's Articles of Incorporation to reflect the reduction
in the issued capital of the Company.

As a result of the cancellation of these shares, the issued capital of the
Company is now US$9,450,000 represented by 6,300,000 shares of US$1.50 each.

Bt Order of the Board

City Group P.L.C.

Group Secretaries

21st April 2004