FIRST INFORMATION GROUP PLC

Joint Administrators have, on 19th January 1998, been appointed for First Information Group plc. This appointment does not of itself affect any other Company in the same group.   The role of Administrator was introduced by the Insolvency Act 1986. Application to the Court for an Administration Order may be made by a Company which is, or is likely to become, unable to pay its debts, or by its Directors or its Creditors. The Court must be satisfied that the Order is likely to fulfil one or more of four specified purposes. In broad terms, the purpose may be to achieve the survival of the Company as a going concern, the approval of a voluntary arrangement, the entering into a compromise or arrangement with Creditors or a more advantageous realisation of the Company’s assets than would be effected on a winding-up. The form which the administration actually takes will depend on the purposes for which the Administration Order is made and the nature of the business.   The Joint Administrators are normally required to report to the Creditors within 3 months, setting out his proposals for achieving the purposes of the Administration Order, although this period can be extended by Court Order.   An Administration Order gives an Administrator wide powers of management of the Company’s affairs and provides the Company with protection against action by its Creditors whilst the Administration Order is in force. These powers are similar to those of a Receiver, although depending on the purposes for which the Court has ordered the Administrators’ appointment, they may propose an arrangement with the Creditors instead of selling the assets. Administration is therefore more flexible than receivership.   The application to the Court for an Administration Order on First Information Group Plc was made for the alternative purposes of ensuring a more advantageous realisation of the Company’s assets than would be effected on a liquidation and the approval of a voluntary arrangement. This was because it was perceived that administration of First Information Group plc would give the best opportunity for the existing assets of the Company, the most valuable of which would be adversely affected by any other form of insolvency other than administration, to be preserved.   Enquiries to Justin Damer, of Coopers & Lybrand, on 0171-583 5000 or Sara Partington, of Norton Rose, on 0171-283 6000. 19th January 1998.