Statement re Room Service Gp

RNS Number:7368S
AIM
02 December 2003

            Room Service Group plc ("Room Service" or "the Company")


The company has recently announced a refinancing package which involves a
placing of new shares, an open offer and a debt for equity conversion.  Since 20
October 2003, the Exchange has been issuing market status messages which have
highlighted the settlement difficulties affecting the Company's AIM securities.
In light of these continuing settlement difficulties, the Exchange has decided
that trading should remain suspended until the admission to AIM of the shares
issued under the placing and debt conversion.


There are still severe settlement difficulties affecting the Company's AIM
securities, due to substantial short positions having been taken prior to
suspension of trading in the Company's shares on AIM.  These positions are
significantly in excess of the total share capital currently in issue. Once the
Company's shares resume trading on AIM, the market price of the shares is likely
to be affected by the very large short positions in the market, and may remain
at such a level until the short position has been resolved.


The Exchange is fully aware of concerns in the market about the possible impact
of the settlement backlog, which is likely to affect the delivery of
entitlements to participate in the open offer that the Company has announced.
The trading rules of the Exchange govern its member firms' settlement
responsibilities and the Exchange is currently working with market participants
to resolve this situation in an orderly manner.



Shareholders who have purchased Room Service shares, but not yet received
delivery of them, should contact the broker through which they effected the
purchase.


For public enquiries - 020 7797 3523

For member firm enquiries - 020 7797 1615



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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