Montpellier Group

Offer Update

Montpellier Group PLC
7 November 2001

                    Montpellier Group plc ('Montpellier')

           Cash Offer for VHE Holdings plc ('VHE') (the 'Offer')

                                 Offer Update

Montpellier announces that as at 3.00 pm on 6 November 2001, it had received
valid acceptances of the Offer in respect of 13,829,333 VHE shares,
representing approximately 43.08 per cent. of VHE's issued ordinary share
capital.  This level of acceptances, together with the VHE shares already
owned by Montpellier, which represent 19.97 per cent. of VHE's issued ordinary
share capital, means that, in aggregate Montpellier controls 63.05 per cent.
of VHE's issued ordinary share capital.

The Offer will remain open for acceptance until 3.00 pm on 14 December 2001 at
which time it will close.

Montpellier has now requested that VHE cancels the listing of VHE shares on
the Official List.  An announcement by VHE regarding the cancellation is
expected to be made shortly.

This announcement, for which the Directors of Montpellier are responsible, has
been approved for the purpose of Section 57 of the Financial Services Act 1986
by Rowan Dartington & Co. Limited.

Rowan Dartington & Co. Limited, which is regulated by the Securities and
Futures Authority Limited, is acting as financial adviser to Montpellier and
no-one else in relation to the Offer and will not regard any other person as
its customer or be responsible to anyone other than Montpellier for providing
the protections afforded to customers of Rowan Dartington nor for providing
advice in relation to the Offer.