Media Statement

Irish Continental Group PLC
19 September 2005


                          Irish Continental Group Plc


In our interim statement of September 8th 2005 Chairman John McGuckian stated
the following ;

'Given the changing patterns of travel behaviour and the new sustained higher
level of fuel costs we are developing and implementing proposals to bring (Irish
Ferries) cost base to the levels applying internationally'.  This followed the
outsourcing of crewing on our vessel serving our route to France, a step which
helped stabilise what was a loss making route.

We also reported that we were engaged in a review process, in an attempt to
progress a sustainable way forward in crewing our Irish Sea vessels.

Irish Ferries has now issued the following press release:


IRISH FERRIES OFFERS  IRISH SEA EMPLOYEES VOLUNTARY REDUNDANCY PACKAGES

Irish Ferries has now offered a voluntary severance package to its 543 seafaring
employees on its Irish Sea services between Dublin / Holyhead and Rosslare /
Pembroke. These offers of voluntary severance for those who wish to leave the
company are supported by packages to compensate staff who choose to continue in
employment on the ships for any changes in work practices required of them. Both
offers are open for acceptance until 2nd October next.

The decision taken by Irish Ferries results from its inability to continue
operations at its current high cost base in the face of low cost shipping
competition and increased capacity from low fares airlines. In 2002, the company
indicated to staff and unions that its costs position was untenable.  Since
then, the company has been unsuccessfully negotiating with SIPTU and the
Seaman's Union of Ireland (SUI) to achieve cost-reductions , both directly and
with the help of various third party intermediaries.

Corrective action on costs is now required if Irish Ferries is to avoid becoming
unprofitable. The operational context has deteriorated in 2005 with a 9% fall in
the Irish Sea Cars market and recent hikes in the cost of fuel (up 50% in 2005
alone).

All existing staff on the Irish Sea have the option of staying, on the rates of
pay tabled by both unions, at the Labour Relations Commission (LRC) in January
2005, for the retention of directly employed staff on the MV Normandy and on
crew ratios covering time off that are in line with the market. Compensation for
loss of income and time-off will be paid. Alternatively all staff can avail of a
voluntary redundancy package of up to 8 weeks pay per year of service (including
statutory of 2 weeks) provided there is agreement on the company's right to
replace departing staff with crew from an agency employing EU personnel.

Chief Executive, Eamonn Rothwell told staff he regretted having to write the
letter to them.

'For many years we have pointed out the major cost differences between us and
our competitors and told you about the threat they represent,' he said. ' If
action isn't taken, Irish Ferries will go the way of B&I except, that this time,
there'll be no bail-out by the Irish Government.'


END

19th September  2005



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