AGM Statement

TBI PLC
3 August 2001


                                      03 August 2001





TBI plc

                       AGM Statement & Current Trading





The acquisition of a controlling interest in London Luton Airport Group
Limited, and the more recent disposal of our interests in Australian airports
(Perth, Hobart and three airports in the Northern Territory), have further
focused TBI as a leading international owner, operator and manager of
airports.



The remaining Australian interests and assets were sold for £30 million, a
profit of some £5 million on the price paid for the assets when we acquired
them as part of the Airport Group International transaction. These interests
were minority holdings, where our ability to influence the management of the
businesses was restricted.



Until 21st March 2001, our shareholding in London Luton was also a minority
one. But we have now taken control and have in the first three months of
ownership identified the steps to be taken to realise Luton's potential as the
fourth London airport.



Overall in the first three months of the current financial year, the Group's
trading performance has been in line with expectations and passenger numbers
during this period have again shown impressive gains. Our main profit
generators in the UK demonstrated good growth in passenger numbers: 15% at
Belfast, 9% at Luton and 8% at Cardiff.



In connection with Belfast, I regret that bmi British Midland has announced
that it will be withdrawing its Heathrow and East Midlands services from
Belfast International Airport with effect from 28th October 2001. We have yet
to confirm with British Midland the detail of its plans. In the worst case,
the direct financial impact on Belfast International Airport would be a
reduction in profit before tax of £2 million for the financial year to 31st
March 2002 and £6 million for the year to 31st March 2003. Obviously, we are
very disappointed by British Midland's decision, which we find somewhat
surprising, given the passenger number, operational and environmental
restrictions at Belfast City Airport and the necessarily detrimental impact
for the business traveller between Northern Ireland and London, by removing
choice from the passenger.  Even though the number of passengers travelling
with British Midland into Northern Ireland has been declining over the past
two years, we have bent over backwards to offer British Midland a very
attractive deal at Belfast International.  Sadly, they have chosen to ignore
us. However, we will now take aggressive action to restore the level of
profitability to which Belfast International has grown, and a number of
initiatives have already begun.



Profitability at Belfast during the first quarter of the financial year
continued to be driven by increased passenger numbers, particularly on new
routes introduced by low-fare airlines, together with improvements in the
retail offering, newly installed car park technology and other commercial
initiatives.



At Cardiff, charter operations are performing well, with volumes which clearly
justify the provision of greater capacity by the tour operators, who have
responded positively to our initiative for two-centre holidays to Florida and
Mexico.




Luton is trading in line with expectations as a result of the increased
passenger numbers and reductions in the cost base. The cost-saving process has
continued during the quarter with the announcement of the redundancy of around
forty managers. Also significant is the recent announcement, made jointly with
easyJet, that we have extended the existing interim arrangement on charges
until 31st August 2001. We are confident that we will succeed in negotiating a
mutually acceptable deal with easyJet.



Stockholm Skavsta continues to face challenging circumstances, but a
combination of further organisational changes and the anticipated winter
scheduled service to Thailand should improve the position.



Orlando Sanford has seen an 11% increase in passenger numbers for the first
quarter of this financial year. This reflects the growth of PanAm's domestic
traffic there, although the strength of the US Dollar relative to sterling has
adversely affected international traffic to Central Florida this year.



In spite of further weakening in the Bolivian economy, our airports at La Paz,
Santa Cruz and Cochabamba are performing in line with expectations and we are
optimistic about the medium term potential for traffic growth, particularly on
international routes.



In the USA, our Airport Services and Airport Management businesses continue to
trade according to plan.



We have an increasingly focused portfolio of high-quality airport assets, all
capable of further improvement in performance in the hands of TBI's
experienced, able and enthusiastic management team. This, together with a
strong balance sheet, places TBI on a sure footing for the future.







For further information, please contact:


TBI plc
Keith Brooks, Chief Executive                           020 7408 7300
Caroline Price, Finance Director

Buchanan Communications
Richard Oldworth                                        020 7466 5000
Nicola Cronk                                            07973 313365