Railtrack Group plc

Railtrack Group - Marconi legal action

date 25 July 2002   source Railtrack Group plc   type Press release

The High Court today gave Marconi Corporation PLC 21 days to pay into Court £20
million plus interest in respect of the claim by Railtrack Telecom Services
Limited ("RTS"), a wholly owned subsidiary of Railtrack Group PLC, against
Marconi. The claim arises from the exercise by RTS of a contractual option on 1
February 2002 to put its remaining shareholding in Easynet Group plc onto
Marconi for a fixed price of £20 million. If Marconi does not pay the sum into
court within 21 days RTS will be granted judgement for £20 million plus
interest. If the money is paid into Court it will be held pending the
determination by the Court of certain claims Marconi has asserted against RTS
which RTS reject and which the Commercial Court has described as "thin".

The outcome of this case does not alter the Board's estimate made in the recent
Circular to Shareholders that if all its assets are to be realised as expected,
and no further liabilities arise, Railtrack Group PLC will be able to return to
Shareholders between 245 and 255 pence per Share.

David Harding, Railtrack Group Chief Executive, said:

"We had been advised that our case against Marconi was a strong one and we are
pleased that the Commercial Court made these orders in RTS's favour. We consider
the claims asserted by Marconi are without foundation and note the Judge's
comment that Marconi's claims were "thin".

- ends -

For more information please contact:

Sue Clark Railtrack 020 7544 8436

All recent press releases can be found on the Railtrack web site
www.railtrack.co.uk



Notes to Editors

• On 25 March 2002, RTS issued proceedings against Marconi for £20
million plus interest, being the agreed price for RTS's remaining shareholding
in Easynet Group plc under an option agreement dated 14 December 2000 between
RTS, Marconi and ipsaris Limited (as amended). RTS exercised the option to put
these shares on Marconi on 1 February 2002. Marconi refused to pay RTS in
accordance with the option agreement and has asserted various counterclaims
which RTS does not consider have any foundation. RTS applied for summary
judgment on 19 April 2002. The hearing took place in the Commercial Court on 15
July 2002 before Mr Justice Morison.



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Railnews Archive ::: 2002-07-25 RTK-001

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