Statement re Possible Offer

Montpellier Group PLC
31 July 2001



Montpellier Group plc ('Montpellier') announces that it is considering making
a cash offer to acquire VHE Holdings plc ('VHE').  It has not yet approached
the board of VHE but intends to do so with a view to seeking a recommendation,
however, this is not a pre-condition to making any offer.

Montpellier has received an irrevocable undertaking dated 31 July 2001 from Mr
B M Thomson under the terms of which Mr Thomson has undertaken that should
Montpellier make a cash offer at a value of 28p per ordinary share to acquire
the whole of the issued and, to be issued ordinary share capital of VHE, other
than the ordinary shares already held by Montpellier, he will accept such an
offer in respect of his own shares and procure acceptance in respect of shares
held by his related family trusts amounting in aggregate to 10,160,773
ordinary shares, representing approximately 31.65 per cent. of VHE's ordinary
share capital.  The undertaking will lapse on 31 August 2001 unless an offer
document setting out the terms of an offer by, or on behalf of, Montpellier
has by that time been sent to VHE shareholders.

These shares in respect of which rights have been granted to Montpellier by
the irrevocable undertaking from Mr Thomson taken together with the 6,435,950
shares already held by Montpellier represent 51.70 per cent. of VHE's existing
issued share capital.