Alpha Airports Group - Chairman's AGM Statement

RNS No 4389v
ALPHA AIRPORTS GROUP PLC
25th June 1998


                           ALPHA Airports Group plc

At the Annual General Meeting of ALPHA Airports Group plc held today, the
Chairman Rodney Galpin made the following comments regarding current trading:

"Since the preliminary statement was issued in April significant progress has
been made towards completing the restructuring programme, announced in
February, ahead of schedule:

*    We will close the loss making kitchen at Heathrow on 31 July 1998 and at
     least 4 of our clients will transfer to our other two Heathrow kitchens
     safe-guarding more than 150 jobs.

*    Consolidation of our divisional and corporate offices will be completed
     by October 1998.

*    We have, as indicated previously, withdrawn from the Retail joint venture
     in Hong Kong.

I am pleased to confirm that the steps announced in February 1998 have all
been achieved within the exceptional provision of #13.9m that was included in
last year's accounts.

Our estimated savings from the actions taken at the end of last year are over
#3m per annum and we will update you with progress in this area when we
announce our interim results in September.

Mr Paul Ashworth has, as indicated in our annual accounts, now left the Group
and has resigned as a Director of the Company.

We are now into the fifth month of ALPHA's current financial year and it would
be right for me to say something about the company's current trading.  I do so
in respect of all three divisions - Catering, Ground Handling and Retail.

Our UK catering activities have seen increased meal volumes, up 14%, over the
previous year.  The costs associated with implementing best practice in the
Catering operations will have an impact on our performance in 1998 but this
project represents an investment in the long term competitiveness of the
business.

Our UK Regional Duty Free Retailing business, our duty free business in Sri
Lanka and our Inflight Retailing business have all seen growth in volume this
year.  However the expiry of the Heathrow management contract for BAA will, as
we have highlighted previously, have an impact on our results for 1998/99.

ALPHA Ground Services has, over the past two months, seen a decline in
activity in its principal US market as a result of decreased passenger and
cargo traffic to/from Asia.  We are not anticipating an improvement during
1998 unless the Asian financial markets improve.  However, further
diversification such as the recently announced reservations contracts with
Mexicana is increasing the range of services offered in the USA.

Overall we continue to develop plans to become a focused, growing airlines
services company."

Press Enquiries:

Kevin Abbott/Stuart Siddall
ALPHA Airports Group plc                            Tel: [phone]

Marc Popiolek/Laura Hickman
Gavin Anderson & Company                            Tel: [phone]


END

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