1. BACKGROUND Further to the Company's announcement of 22 January 2001, Bill Grimsey (Chief Executive) and Bill Hoskins (Finance Director), having recently joined the Iceland Group, have completed their initial evaluation of the progress made following the Booker acquisition in June 2000. This announcement is being made to reflect the findings of this evaluation and to provide a fuller understanding of the trading issues surrounding the Iceland Group during the accounting period ending 31 March 2001. This period covers a fifteen month trading period for Iceland and a nine month trading period for Booker.