Response to Press Speculation

25 April 2005                                                                  

The Board of Chesnara notes the recent press speculation regarding the
potential acquisition by Chesnara of City of Westminster Assurance Company
Limited, the closed life assurance subsidiary of Irish Life & Permanent plc
('Irish Life & Permanent').

As previously stated, Chesnara has looked at a number of potential acquisition
targets. Chesnara confirms that it is in discussions with Irish Life &
Permanent regarding this particular potential transaction but no agreement has
been reached and the outcome of these discussions is not certain. A further
announcement will be made when appropriate.

Chesnara plc                                  Tel: [phone]                
                                                                               
Graham Kettleborough, Chief Executive                                          
                                                                               
Cubitt Consulting                             Tel: [phone]               
                                                                               
(public relations advisers to Chesnara)                                        
                                                                               
Michael Henman/Selena Hedley Lewis