Outcome of Court Case

All Leisure group plc

Outcome of Court Case - All Leisure Holidays

Awarded £1,971,900.48

All Leisure group plc, the leading specialist destination-led cruise company has today been awarded an aggregate sum of £1,971,900.48 by Mr Justice Teare in the High Court of Justice , Queen's Bench Commercial Division, in respect of the court case lodged by All Leisure Holidays Limited against Europaische Reiseversicherung A.G., Groupama Insurance Company, Novae Syndicates Limited and Sagicor Corporate Capital Limited, the underwriters for International Passenger Protection Policy ("IPP").

The details of the court case were recorded, as follows, in the Group's full year results, published on 24th January 2011.

Background:

On 23 April 2009 (the "Acquisition Date") All Leisure Holidays Limited ("the Company") acquired the ship mv Hebridean Princess, trade, various related assets and immaterial detention creditors from the administrators of Hebridean International Cruises Limited ("HICL") and immediately began operating the vessel under the name of Hebridean Island Cruises. The Sale and Purchase agreement signed with the administrators expressly waived any obligation on the part of the Group to honour bookings previously made with HICL by passengers travelling after the Acquisition Date. After consideration of the significant level of non-charter bookings for HICL cruises departing after the acquisition-date, and in order to preserve the value inherent in the customer relationships acquired, the Company wrote to affected non-charter HICL customers to inform them that, subject to affected HICL customers entering into a new contract with the Company with various conditions including the requirement to make a claim on HICL's financial failure insurance policy, the Company would allow them to travel on a new cruise similar to the one originally booked with HICL departing after the Acquisition Date.

Many of the passengers contacted were covered by insurance designed to pay out in the event of a financial failure of HICL. Accordingly, the Company allowed payment for the new cruise to be delayed pending receipt of monies claimed under the passengers' insurance policies. A majority of these passengers assigned to the Company their rights to claim under this policy in return for consideration for the new cruise operated by Hebridean Island Cruises. The Company took legal action (as assignee) to recover the monies due under the policies assigned to it in the region of £2.0m.

Outcome:

At publication of the full year results ended 31st October 2010 in January 2011, the Company outlined the claim and confirmed it was taking legal action to recover monies due under policies in the region of £2 million. Given the uncertainty surrounding both the timing and outcome of the action and accounting regulations, no contingent asset was recognised.

All Leisure group plc will issue a trading statement in the second half of November 2011.

Ends