Re: Tower Hotel Group

FBD Holdings PLC
11 October 2002

FBD Holdings plc



                              COMPANY ANNOUNCEMENT

         FBD HOLDINGS PLC INCREASES ITS STAKE IN THE TOWER HOTEL GROUP


FBD Holdings plc is pleased to announce that it has reached agreement to
increase its holding in the Tower Hotel Group Limited from 50% to 75.0005%.

The Tower Hotel Group, which operates a chain of hotels, commenced trading in
1981 when FBD Insurance plc and Travelplan Limited came together to acquire the
Tower Hotel, Waterford. Since then, the Castlerosse Hotel in Killarney, Temple
Bar Hotel, Dublin, Tower Hotel, Sligo, Faithlegg House Hotel, Waterford and the
recently opened Tower Hotel in Derry City have been added to the Group.

Travelplan Ltd is a holding company which has a 50% shareholding in the Tower
Hotel Group Limited. FBD Holdings plc is increasing its holding in the Tower
Hotel Group Limited by the acquisition of 50.001% of issued share capital in
Travelplan Limited.

The net assets of the Tower Hotel Group Limited at 31st December 2001 amounted
to €27.3 million and the Group recorded a profit, after tax, of €2.3 million for
the year ended on that date.

The consideration for the acquisition is €9.0 million and will be satisfied by
cash on completion.

The consolidation of the Tower Hotel Group figures into FBD Holdings plc as a
result of this transaction will enhance FBD's hotel and leisure interests in
Ireland and complements the Group's existing property and hotel/leisure
interests in Ireland and Spain.



ENDS                                                11th October   2002


For Reference                                       Telephone No.

Paul O'Callaghan                                    01 4093200
Chief Executive


This announcement has been issued through the Companies Announcement Service of

                           the Irish Stock Exchange.




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