AGM Statement

Chairman's Statement on Current Trading to the Annual General Meeting


Trading in the first quarter of 2006 has been broadly in line with
expectations at the time of our results statement in early March
2006. In the first 17 weeks of the year, we have seen a continuation
of the trends seen in 2005, i.e. a weaker passenger market and a
stronger freight market.

In the period to 30th April, our car volumes are down 9.0% compared
with the previous year.  In the first quarter, a period for which
statistics are available, our performance is ahead of the market. The
decline in the market generally reflects substantial increases in
competing air capacity, particularly to and from regional airports in
Ireland and the UK, and new destination options, particularly from
the UK.

The freight market remains strong.  In Irish Ferries, RoRo freight
volumes are up 4.0% broadly in line with the market while in our
Container & Terminal Division container freight volumes are in line
with 2005, with growth in door to door volumes offset by some
contract losses in the feeder market.

Fuel costs remained high during the period, approximately ¤2.5m more
than in the same period in 2005, part of which we are recovering by
way of fuel surcharges.  We have adjusted our passenger capacity
through a reduction in the frequency of our fast craft, Jonathan
Swift, from 3 round trips per day to 2 which will also mitigate the
effect of the higher world oil price. The schedule remains under
constant review.

The necessary restructuring of our cost base, announced in late 2005,
to take account of the difficult external environment is now
virtually complete. This process is on target to deliver the planned
level of savings and align our cost base more closely with our
international competitors.
                                                                  1/2
Capacity changes on the Irish Sea reflect market trends.  In tourism
there has been a reduction in capacity with one fast ferry operator
on the Dublin - Liverpool route ceasing trading and reductions in
fast ferry frequency by us and by our competitor on the Holyhead
route.  In the freight market the main freight operator on the Dublin
- Liverpool route has added some driver accompanied capacity and our
main competitor on the Dublin - Holyhead route is also adding freight
capacity in July.

In a development of our port activities I am pleased to say that we
have reached agreement with The Port of Belfast to develop a new
container terminal at Herdman Channel in Belfast.  The development,
which has already commenced will increase the Port's container
handling capacity by 40,000 units on an annual basis and will be
operational in Autumn 2006.  The new facility will handle vessels for
Eucon Shipping & Transport Limited and Eurofeeders Limited, both of
which are wholly owned subsidiaries of Irish Continental Group. This
development will complement our existing terminal activities in the
Port of Dublin



John B. McGuckian
Chairman
3rd May 2006
11.00am




---END OF MESSAGE---