Tulip Holdings Ltd

Offer Update

Tulip Holdings Limited
20 June 2007



20 June 2007

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO OR
FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION


                       TULIP HOLDINGS LIMITED ('TULIP')

           CLARIFICATION STATEMENT REGARDING TULIP'S REVISED CASH OFFER 
                    OF 156p FOR TRACE GROUP PLC ('TRACE')



Tulip announced a Revised Cash Offer for Trace on 13 June 2007 (the 'Revised
Cash Offer').  The Tulip Directors wish to clarify the position regarding the
proposed sale and lease back of Trace's freehold property at 222-224 St John
Street, London (the 'St John Street Property') as referred to in that
announcement.



On 19 April 2007 Tulip entered into a conditional contract (the 'Sale &
Leaseback Agreement') to procure the sale of the St John Street Property
following implementation of the proposed Scheme of Arrangement in respect of
Trace which lapsed on 25 May 2007.  The Board of Tulip propose that the Sale &
Leaseback Agreement will be varied by agreement between Tulip and the
prospective purchaser of the St John Street Property so that Tulip will procure
the sale by Trace of its freehold interest in the St John Street Property,
subject to the Revised Cash Offer becoming or being declared wholly
unconditional.



Under the terms of the Sale & Leaseback Agreement, and subject to such variation
being agreed, Trace's freehold interest in the St John Street Property will be
sold to the Property Purchaser for £9.1 million in cash and the property will
then be leased back to Trace for a term of 15 years under a standard commercial
lease at an initial rental of £500,000 per annum with an option for Trace to
terminate after 10 years.



The proceeds from the conditional Sale & Leaseback Agreement will not
necessarily be used to repay the bridging loan from Fortis Bank Plc to finance
the Revised Cash Offer, as was set out in paragraph 10 of the announcement of 13
June 2007.





Enquiries:



Tulip Holdings Limited                       +44 (0) 20 7825 1000
Richard Wolfe
Peter Stolerman

Charles Stanley Securities                   +44 (0) 20 7149 6000
(Financial adviser to Tulip)
Russell Cook
Henry Fitzgerald-O'Connor



Terms used in this announcement shall have the same meaning as set out in
Tulip's Rule 2.5 Announcement dated 13 June 2007.



This Announcement does not, and is not intended to, constitute or form part of
any offer to sell, or an invitation to purchase, any securities or the
solicitation of any vote or approval in any jurisdiction.  The Revised Offer
will be made solely by means of the Tulip Offer Document, which will contain the
full terms and conditions of the Revised Offer. Trace Shareholders are advised
to read carefully the formal documentation in relation to the Revised Offer once
it has been despatched.



The availability of the Revised Offer and the release, publication or
distribution of this Announcement to persons who are not resident in the United
Kingdom may be affected by the laws of the relevant jurisdictions in which they
are located.  Persons who are not resident in the United Kingdom should inform
themselves of, and observe, any applicable requirements. Any failure to comply
with such applicable requirements may constitute a violation of the securities
laws of any such jurisdictions.  This Announcement has been prepared for the
purposes of complying with English law and the City Code and the information
disclosed may not be the same as that which would have been disclosed if this
Announcement had been prepared in accordance with the laws of jurisdictions
outside the United Kingdom.



The Revised Offer will not be made in or into any jurisdiction where to do so
would constitute a violation of the relevant laws of such jurisdiction.
Custodians, nominees and trustees should observe these restrictions and should
not send or distribute the document in or into any jurisdiction where to do so
would constitute a violation of the relevant laws of such jurisdiction.



Charles Stanley, which is authorised and regulated in the United Kingdom by the
Financial Services Authority, is acting exclusively for Tulip and no one else in
connection with the Revised Offer and will not be responsible to anyone other
than Tulip for providing the protections afforded to clients of Charles Stanley
nor for providing advice in relation to the Revised Offer, the content of this
Announcement or any matter referred to herein.




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