RNS Number:0312K
De Vere Group PLC
15 April 2003

                                                                 15th April 2003

                          De Vere Group Plc ("De Vere")

                  Contingent Liability re HM Customs & Excise

De Vere, the hotels and health & fitness operator, today announces the following
update relating to a contingent liability for VAT payable by a Group subsidiary;
this contingent liability has been disclosed in the statutory accounts of the
Group for each of the three years ended September 2002.



For the period from April 1997 to December 1999, a De Vere Group subsidiary
company treated its golf & leisure subscription revenues as exempt from VAT.  HM
Customs & Excise has contended that this income should be liable to VAT at the
standard rate and in July 2000 raised a VAT assessment; the potential liability
amounted to #7m plus interest.



Following a hearing in December 2002, a judgement has now been received from the
VAT tribunal which makes it more likely that this assessment will become
payable.  The Board has therefore decided to make an appropriate provision in
the accounts of the Group for the year ending September 2003.  It is estimated
that this provision will amount to #9.3m net of taxation being the VAT, interest
and costs of #11.5m and a corporation tax credit of #2.2m and this provision
will be charged as an exceptional item.



De Vere Group has 56 days to lodge an appeal and is considering the matter with
legal advisers.  This judgement has no impact on the ongoing prospects for the
leisure clubs business.


Enquiries:

Brunswick Group
Jonathan Glass/Simon Sporborg                         020 7404 5959




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