Company updates and media information

Media Statement - Issued jointly by Peter Jones and Theo Paphitis

02 August 2005

We are able to confirm that even though the administrators (Primary contact: Andrew Pepper at Kroll Limited) have been appointed, entrepreneurs Peter Jones and Theo Paphitis have been working tirelessly all weekend and late last night to find ways of completing a rescue package for Red Letter Days Limited.

We are now happy to confirm that Jones and Paphitis have purchased the assets and goodwill of the Company. This is great news for customers and the Red Letter Days brand and means that the business has a future. This announcement is great news also for the company's 150-plus employees.

With immediate effect, we will now focus on getting the business back to normal, following a long period of uncertainty. We have already committed to honour all Red Letter Days experiences that have been purchased directly from the Company through Visa and Mastercard.

We have provided this critical financial support since we hope that people will continue to buy Red Letter Days experiences from today onwards through our website (www.redletterdays.co.uk) safe in the knowledge that they will all be honoured.

Discussions over the next few days will take place with all suppliers in order that direct working relationships can be re-established, so that individuals with current vouchers can rebook and enjoy the experiences they have purchased.

We have also managed to secure the position of a substantial number of our voucher holding customers and will be working hard over the coming days with our retail partners to put in place a package of measures that will endeavour to ensure all voucher holders that purchased through retail outlets will be able to enjoy their experiences.

We have been hugely encouraged by the support we have received from the company's suppliers over the past few days. Even despite the fact they are unlikely to receive any monies from the Administrator, a significant majority have expressed in letters, emails and telephone calls that they want to support the business going forward now that it is under new ownership.

We envisage that very soon it will be business as usual. We would like to thank all our customers and staff for the support and patience they have shown. The Red Letter Days brand is now able to continue and we are both extremely confident that the Company has an exciting long-term future.

-ENDS-