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Subdivision of shares What is the subdivision and why has it been done? At the company's AGM held on 11 July 2006, Shareholders approved the Board's proposal to sub- divide the ordinary share capital with the aim of proportionately reducing the market price of the company's shares which can facilitate trading in the Company's shares and enhance liquidity. For each Ordinary Share of 18 US cents held at the close of business on Friday 11 August 2006 you now hold 6 Ordinary Shares of 3 US cents each. How many shares do I hold after the sub-division? You now hold 6 New Ordinary Shares with a nominal value of 3 US cents, for each Existing Ordinary Share of 18 US cents held at the close of business on 11 August 2006. Therefore you now hold six times the number of shares you held before the sub-division but the nominal value of your holding and your percentage interest in the Company's share capital have not changed. What effect has the sub-division had on the value of my investment? It is expected that the market price of each New Ordinary Share will be approximately one sixth of the market price of an Existing Ordinary Share before the sub-division. Subject to market movements, the value of your shareholding in the Company at the date of the sub-division should remain the same, however the share price can go down as well as up. You can find the share price on the Company's web site, in the Financial Press or on Ceefax or Teletext. Has the sub-division affected shareholder rights? No, your rights as a shareholder are unchanged. Each Shareholder will maintain the same percentage interest in the issued share capital of the Company; the financial position of the Company will not be affected; and there will be no reduction in the Company's assets, liabilities or overall shareholder funds, as a result of the sub-division. Will I receive a new share certificate? No new certificates for the sub-divided Ordinary Shares are being issued. Instead, a letter confirming that the sub-division has become effective will be / was sent to shareholders holding Ordinary Shares in certificated form by 18 August 2006 along with adhesive labels and instructions as to how such labels should be affixed by Shareholders onto existing certificates, which remain valid (whether the nominal value is shown as 18 US cents shares or 10 pence (if issued before 29 July 2004)). When will / were CREST accounts be adjusted to reflect the subdivision? CREST accounts were adjusted on Monday 14 August 2006, the day on which the subdivision became effective. Has the sub-division affected my tax position? The sub-division should not give rise to any liability for UK capital gains tax purposes. For UK capital gains tax purposes the sub-divided Ordinary Shares should be treated as the same asset as the original holding before the subdivision happened. We are not able to advise you on taxation, other than to confirm the information already contained within the AGM notice. If you are in any doubt about your individual tax position you should consult an authorised financial adviser. How does the sub-division affect employee share schemes? As a consequence of the sub-division, all current and future options and awards granted under the Company's employee share schemes (the 'Share Schemes') will relate to sub-divided Ordinary Shares. This change does not require any amendments to be made to the rules of the Share Schemes although option prices and number of shares over which grants/awards have been made will be adjusted to reflect the sub-division. The Inland Revenue have confirmed that the sub-division will not affect the tax status of the UK tax approved Share Schemes.
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