Statement re EGM

RNS Number:1659L
Host Europe PLC
15 May 2003



From the Board of Directors of Host Europe Plc. 

Extraordinary General Meeting convened for 16 May 2003


In the letter of 28 April 2003 that accompanied the announcement of the
requisition of an Extraordinary General Meeting to be held on Friday 16 May 2003
("Extraordinary General Meeting"), we had anticipated the possibility that
further discussions with Messrs Hardoon, Gareh and Lauder ("the
Requisitionists") may have occurred before the date fixed for the Extraordinary
General Meeting.


We are pleased to inform you that following negotiations, an amicable
arrangement has been reached between the Company and the Requisitionists which
recognises that it is for the benefit of the Company and the shareholders as a
whole that the Company be led by a unified Board. In view of this, it has been
agreed that the current Board, with the exception of Mr Hardoon, shall resign
with immediate effect and Victor Gareh, Uwe Braun, Garry Southern and Jonathan
Willis-Richards be appointed to the Board as directors. Accordingly, Maurice
Benisty, Shalom Benaim, Timothy Beresford, Jonathan Brealey, Stephen Halstead
and Frank Rejwan have duly resigned as directors, with Garry Southern to take
over as chairman from Maurice Benisty.


The Company has reached a fair and reasonable settlement with those directors
who have resigned and who do not remain employed by the Company.


It is proposed that the Extraordinary General Meeting be adjourned indefinitely
as the resolutions scheduled to be considered at that meeting will no longer be
required. Each of the departing directors who holds shares in the Company and
the Requisitionists have agreed to vote in favour of the adjournment. 


The Board wishes it to be recognised that Mr Hardoon has had an influence on the
performance of the Company which the Board considers to be of value. The Board
and the Requisitionists regret that an amicable settlement between the parties
was not reached prior to the dispatch by the Company of the notice convening the
Extraordinary General Meeting, and regret any distress caused to any party
through attention from the press. 

We believe that the new Board, the settlement referred to above and the handover
arrangements agreed with the departing Directors will enable the Company to
continue to be one of the UK's market leaders in the web hosting industry. 


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