Sale of The De Vere Belfry to the Irish based Quinn Group for £186 million and Return of £183 million cash to De Vere shareholders and Share Consolidation

The Board of De Vere today announces that De Vere has agreed terms, subject to shareholder approval, to sell The De Vere Belfry to Quinn Group for £186 million and to enter into a contract to manage the hotel for the next 25 years.

The highlights of the agreements are:

Quinn Group will acquire The De Vere Belfry for £186 million in cash, payable on completion

De Vere will continue to operate The De Vere Belfry under the De Vere Hotels brand pursuant to a 25 year management contract

The price is at a 47 per cent premium to the hotel's net book value of £126.2 million, which itself includes a £54.0 million revaluation surplus

The transaction is conditional on the approval of De Vere shareholders

Completion of the sale is expected to take place before the end of March 2005.

De Vere also announces today that, subject to completing the sale of The De Vere Belfry, it intends to return approximately £183 million of cash to shareholders, representing the net proceeds of the sale.

The cash return of approximately £183 million will be made by way of a special dividend of 159 pence per share

In order to maintain comparability of De Vere's share price and earnings and dividend per share before and after the payment of the special dividend, the Board will seek shareholder approval to implement a share consolidation of De Vere's issued share capital

The payment of the special dividend is expected to be made before the end of March 2005.

A circular will shortly be posted to shareholders setting out details of the proposed sale, the special dividend and the share consolidation.

Enquiries:

Close Brothers

Richard Grainger

Christopher Lewey

020 7655 3100