French Legal Investigation: Eurotunnel Board SupportsDirectors and Rejects Allegations.

Business Editors

PARIS--(BUSINESS WIRE)--May 17, 2000

The joint Board of Eurotunnel, at its regular meeting today prior to the AGM, noted the decision by the French magistrate investigating two sets of claims by a small number of French shareholders to hear evidence from ("mise

The non-executive members of the Board unanimously confirmed their full support for and confidence in their two executive colleagues on the Board - Patrick Ponsolle, Group Executive Chairman and Georges-Christian Chazot, Group Managing Director - as well as Alain Bertrand, Director of Planning and Development, and the three past directors - Sir Alastair Morton and Andre Benard, former Co-Chairmen, and Graham Corbett, former Chief Financial Officer.

The Board would also like to make clear that it totally rejects the allegations that have been made against these directors, and the criticisms of them contained in the recent report on these allegations by two experts commissioned by the magistrate.

The first claim, made in 1994 by Christian Cambier, the then Chairman of the Association pour L'Action Eurotunnel (AAE), related to alleged insider trading at the time of the rights issue in May 1994. This allegation has been made against a number of financial institutions, not Eurotunnel. In fact, Eurotunnel joined the legal action at the time as a third party, believing that should it prove that financial institutions had been involved in any insider trading, Eurotunnel may be entitled to sue them and claim damages.

The second claim, made in 1997 by a small number of shareholders most of whom were members of the Association de Defense des Actionnaires d'Eurotunnel (ADACTE), referred mainly to allegations of publishing false accounts, publishing misleading information in 1993 and 1994, and misuse of company assets. The experts' report on these allegations contained certain criticisms of individual directors.

A very detailed response has been sent to the magistrate by Eurotunnel's lawyers, which comprehensively refutes these criticisms. It points out that they were based on multiple errors of fact, and resulting errors of interpretation, which could have been avoided if they had been discussed with Eurotunnel and its professional advisors. The Board is confident that the procedure of "mise en examen" will give the six past and current directors the opportunity to correct these misapprehensions directly with the magistrate.

Eurotunnel will continue, as in the past, to co-operate fully with the investigation in an open and constructive manner.

The Board and Management will continue to concentrate their full attention on completing the strong recovery of Eurotunnel which has seen, since the financial restructuring of 1997/98, a major turnaround in operating results and consistent out-performance of the forecasts contained in the 1997 prospectus.

Note to Editors:

The "mise en examen" is the procedural means for the investigating magistrate to interview the persons concerned by the claims. The investigatory hearing does not prejudge the next stage in the legal process nor imply the guilt of the people involved.

Additional information on Eurotunnel can be accessed on the company's home page: http://www.eurotunnel.com