IAWS Group PLC - Reorg of business activities

26 October 2006

IAWS Group plc ('IAWS') today announces plans to establish a new operating company to create a specialist focus around the original core Agri and non Lifestyle Foods businesses of the group. IAWS will transfer these operations under a new wholly owned subsidiary to be called Origin Enterprises ('Origin').

The purpose of this initiative is to provide additional momentum to these businesses and to facilitate development.

Origin Agribusiness activities will comprise the Agri Inputs division (feed ingredients, fertiliser blending and agri supplies) and Marine Proteins and Oils. Origin Food activities will include the business of Shamrock Foods Limited together with the IAWS 50% interest in Odlum Group Milling.

The focus of Origin will be to enhance shareholder return through a combination of organic and new investment opportunities. Origin will have the benefit of a substantial operating asset base associated with the acquired businesses including a number of significant properties with development potential located in areas destined for future development and regeneration. The objective will be to add value to these properties over time in order to maximise their potential.

IAWS will establish a separate Origin board which will operate under dedicated management. Tom O'Mahony, who has been IAWS Chief Operating Officer since 2004, is to join the Board of IAWS and will become CEO of Origin. New responsibilities for IAWS management transferring to Origin include Peader Kearney, head of Food; Liam Larkin, head of Agri Inputs; and Tom Tynan, head of Marine Proteins and Oils. New management include Brendan Fitzgerald, Finance Director; and John Butler with responsibility for business development and property.

Turnover and operating profit including share of associates (after tax) attributable to the Origin businesses for the Year Ending 31 July 2006 was Euro819m and Euro36.4m respectively. Operating cash flow for the period was Euro43.1m.

Origin Enterprises provides a distinctive focus to develop the original activities of the group. The consistent track record of high investment returns and cash flow generation achieved across these activities is a direct result of the contribution made by the management team over the years. These businesses have scale, leading market positions, strong brands and substantial property assets. We have established a focussed and incentivised management resource which will ensure that Origin Enterprises is well placed to enhance future value for our shareholders.

Owen Killian
Chief Executive of IAWS