Offer Update

Irish Continental Group PLC
31 July 2007



                                  31 July 2007
                                        
              Irish Continental Group plc ('ICG' or the 'Company')
                                        
                            Offer Update Announcement
                                        

On 23 July 2007 the independent directors of ICG (the 'Independent Directors')
announced that on 19 July 2007 the Independent Directors had written to both
Moonduster Limited ('Moonduster') and Aella plc ('Aella') requesting them to
confirm to the Independent Directors, by no later than 12.00 p.m. on 26 July
2007, the highest price per ICG Unit which they were prepared to offer to
acquire the Company and also their intentions in the event that a higher offer,
other than their own offer, was made. Subsequently, on 27 July 2007 the
Independent Directors announced that this deadline had been extended until 5.00
p.m. on Monday 30 July 2007.


Moonduster has confirmed to the Independent Directors that in respect of
approximately 20.38 per cent. of the issued share capital of the Company which
it controls, it would vote against an Aella Offer of €22.00 per ICG Unit. Aella
and its concert parties have confirmed to the Independent Directors that, in
respect of approximately 19.14 per cent. of the issued share capital of the
Company in which they have an interest, they would vote against a Moonduster
Offer of €22.00 per ICG Unit. Furthermore, neither Moonduster nor Aella have
confirmed the highest price per ICG Unit which they are willing to offer to
acquire the Company.


The Independent Directors also note that a third party has acquired a
significant interest, thought to be up to 11.40 per cent., in the Company
through contract for differences (CFD) instruments. This third party, as of yet,
has not formally confirmed its identity to the Independent Directors nor have
they indicated what their intentions are towards the Company.


Taking all these facts into account together with the Independent Directors
concerns regarding the ongoing uncertainty surrounding the Company as a result
of the protracted offer period the Independent Directors wish to resolve the
current uncertainty in the shortest timeframe possible. Therefore the
Independent Directors will now consult with the Irish Takeover Panel (the
'Panel') in order for the Independent Directors to determine the most
appropriate manner of seeking to resolve the current uncertainty which may
include progressing with either the Aella or Moonduster scheme or withdrawing
from both schemes. In the event that the Independent Directors withdraw from, or
abandon, the Aella or Moonduster schemes then, except with the consent of the
Panel, both Aella and Moonduster will be precluded from announcing or making an
offer for the Company for 12 months thereafter.


Shareholders should note that there is no guarantee that an offer with an
improved certainty of execution will be forthcoming as a result of the current
process.


A further announcement will follow in due course.


Enquiries

Irish Continental Group plc Telephone [phone]
Independent Directors
John B McGuckian


NCB Corporate Finance Telephone [phone]
Liam Booth
Jonathan Simmons
Shane Lawlor


Drury Communications Telephone [phone]
Billy Murphy
Paddy Hughes


The Independent Directors of Irish Continental Group plc accept responsibility
for the information contained in this announcement. To the best of their
knowledge and belief (having taken all reasonable care to ensure that such is
the case), the information contained in this announcement for which they take
responsibility is in accordance with the facts and does not omit anything likely
to affect the import of such information.


NCB Corporate Finance Limited, which is authorised in Ireland by the Financial
Regulator under the Investment Intermediaries Act 1995, is acting exclusively
for Irish Continental Group plc and no one else in connection with the
acquisition and will not be responsible to anyone other than Irish Continental
Group plc for providing the protections afforded to clients of NCB Corporate
Finance Limited nor for providing advice in relation to the acquisition.




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