Offer Update

Montpellier Group PLC
17 December 2001

Montpellier Group plc announces that its cash offer for VHE Holdings plc 
('VHE'), which was declared wholly unconditional on 17 September 2001, closed at
3.00 pm on 14 December 2001.  At the close, Montpellier had received valid
acceptances in respect of 24,858,288 VHE shares, representing approximately
77.43 per cent. of VHE's issued share capital.  These shares, together with
the 6,410,950 VHE shares already held by Montpellier, mean that in aggregate
Montpellier controls 31,269,238 VHE shares, representing 97.4 per cent. of
VHE's issued share capital.


Montpellier now intends to apply the provisions of sections 428 to 430 of the
Companies Act 1985 to acquire compulsorily any VHE shares in respect of which
valid acceptances have not been received.