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Leeds United PLC (LUFC)

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Thursday 04 December, 2003

Leeds United PLC

Re: Standstill Agreement

Leeds United PLC
04 December 2003

4 December 2003


                                LEEDS UNITED PLC

                 Financial Restructuring: Standstill Agreement


London, 4 December 2003 - Leeds United plc ('Leeds United') announces that it
today has signed a formal standstill agreement ('Standstill') with its principal
finance creditors for the period until 19 January 2004 to provide the Group with
sufficient working capital until that date to allow it time to seek to identify
parties who would be prepared to make a substantial investment in, or offer for,
the business as part of an overall financial and balance sheet restructuring.
The Standstill is the culmination of negotiations between Leeds United and,
among others, the providers of £60 million of senior secured notes (the 
'Noteholders') and Gerling General Insurance Co ('Gerling'), the credit insurer
of Registered European Football Finance Ltd ('REFF') who is the provider of
Leeds United's football player finance lease arrangements.

In summary, the key points of the Standstill are as follows:

• The Noteholders have agreed to allow £4.1 million of accumulated cash
  which is currently held for them as part of their security to be used to fund
  certain working capital requirements of the Group.

• REFF and Gerling have agreed to defer approximately £1.7 million of
  capital and certain interest repayments due in the period to 19 January 2004.
  
• HSBC, the Group's banker, has agreed to provide a new term loan
  facility.

The board will seek to identify parties who would be prepared to make a
substantial investment in, or offer for, the business, working in conjunction
with the Group's restructuring advisors.  However, the Directors believe that
these discussions, if they lead to an offer, may not realize value for the
equity at the current share price.  In addition, there can be no guarantee that
this process will be concluded satisfactorily and, if unsuccessful, the
Directors may be forced to seek the protection of an administration order.

In addition, Allan Leighton has resigned from the Board with immediate effect to
avoid any conflict of interest should he decide to become involved in any future
funding or purchase of the business.  Allan Leighton has not provided any
funding as part of this Standstill arrangement although it may still be
available as part of any future financing proposal.

Finally, the Board also confirms that it has now had an approach from a third
party, being a company associated with Sheikh Abdulrahman Bin Mubarak Al
Khalifa, which may or may not lead to an offer being made for the business.  The
Board, which is being advised by KBC Peel Hunt, will issue a further statement
in due course.

Contacts

Trevor Birch          Chief Executive, Leeds United plc     Tel: 0113 367 6000
Neil Robson           Finance Director, Leeds United plc    Tel: 0113 367 6000
David Davies          KBC Peel Hunt Limited                 Tel: 0207 418 8906

Holborn PR                                                  Tel: 020 7929 5599
David Bick                                                  Tel: 07831 381 201
Chris Steele                                                Tel: 07979 604 687
Trevor Phillips                                             Tel: 07889 153 628



                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                          

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