Eurotunnel PLC/Eurotunnel S.A. 27 October 2005 27 October 2005 PROGRESS REPORT Eurotunnel update on debt negotiations Following the presentation by the Group, in June 2005, of its Business Plan to lenders, debt negotiations started on 13 July 2005. At the halfway stage of the negotiation process (the waiver comes to an end on 31 January 2006), Eurotunnel is negotiating solely with the "Ad hoc Committee" of creditors, formed in 2003 and representing c45% of the debt. Eurotunnel first presented its initial reflections for restructuring in July. Since then there have been numerous exchanges between the company and the committee. Two other creditor committees have been formed in the meantime, each representing approximately 10% of the debt. The representatives of these other committees, the bank Close Brothers and the solicitors, Allen & Overy respectively, have been given access to the Business Plan, but have not been presented with any proposals. As the members of these two Committees wish to keep their option to trade the debt, they have not been informed of any of the discussions with the Ad hoc committee and are therefore not yet involved in negotiations. After just three and a half months of negotiation between the Company and the Ad Hoc Committee, real progress has been made and the process is proceeding in line with Eurotunnel's timetable. On the basis of information provided in the Business Plan and from the detailed due diligence work carried out by the creditors, both parties are diligently working to reach agreement on both Eurotunnel debt capacity and on the total enterprise value. Eurotunnel would like to simplify its future debt structure, to move away from the project finance approach, with the constraints that this entails, to one more suited to a concession manager with prospects for development. To this end, negotiations are underway on a number of different options which could eventually make up the future structure. In late September 2005, the Joint Board of Eurotunnel took the decision not to convert the Stabilisation Advances and Notes into Units. The Joint Board took the view that the debt should be considered as a whole and that conversion of 9% of the total debt and furthermore very junior debt was not currently in line with the Group's interests. As a protective measure, Eurotunnel has proposed that the option to convert the Stabilisation Advances and Notes be extended until September 2006; it is now up to the creditors to decide whether this is acceptable. The next stage of the negotiation will be to agree the mechanism for the restructuring, taking into account the different views of all stakeholders, firstly with the Ad Hoc Committee and then with the other creditors committees at the moment that they enter into the discussions. Eurotunnel Chief Executive, Jacques Gounon, said "In just a short time we have made encouraging progress. The negotiations with the Ad Hoc Committee are intense and constructive and are in line with our original timetable. I consider that the dialogue we have established with the Ad Hoc Committee should enable us to arrive at a viable and long term solution for the Group". For media enquiries contact the Eurotunnel Press Office on + 44 (0) 1303 288728 or + 44 (0) 1303 288737. Email: press.uk@eurotunnel.com For investor enquiries contact Xavier Clement on + 33 1 55 27 36 27. Email: xavier.clement@eurotunnel.com This information is provided by RNS The company news service from the London Stock Exchange