Eurotunnel Feasibility Study of a Second FixedLink.

Business Editors

PARIS--(BUSINESS WIRE)--January 5, 2000

Eurotunnel, the operator of the high-speed transport system linking the UK to Continental Europe through the Channel Tunnel, has submitted at the end of December to the French and British governments a feasibility study

of a second fixed link. The study complies with the undertaking given in the Concession signed in 1986 "to present to the Principals between now and the year 2000 a proposal for a drive-through link which shall be added to the first link when technical and economic conditions for realization of such a link shall permit it and the increase of traffic shall justify it without undermining the expected return on the first link."

To assist with the study, Eurotunnel appointed a group of consultants consisting of Maunsell Ltd and Scetauroute SA, who were selected in November 1998. Although Article 34.1 only calls for a proposal for a drive-through link, Eurotunnel decided to extend the scope of the study to include a possible rail alternative.

After considering the results of the first phase of the study, Eurotunnel decided to select two alternative projects for detailed examination: a single-bore two-level road tunnel for light vehicles only and a single-bore rail tunnel divided into two sections for conventional trains.

The study considered the two projects against criteria specified by Eurotunnel, including safety, the effect on the existing tunnel, and the capacity required to satisfy long-term traffic demand. The consultants also developed provisional cost estimates for the alternative options and carried out a preliminary environmental assessment.

The study has enabled Eurotunnel to conclude that either option would be technically feasible, although they are necessarily illustrative only at this stage.

In submitting the study results, Eurotunnel is simply respecting its contractual obligation. The governments have not been asked to agree to the construction of a second fixed link.

Patrick Ponsolle, Eurotunnel Executive Chairman, said: "Eurotunnel has now complied with its obligations under the concession by submitting to the governments by the due date two technically feasible projects, which draw on its own experience and knowledge as a transport operator.

"The option of adding a second fixed link to the existing tunnel is a long term issue. Eurotunnel would only embark on such a venture if it would enhance the profitability of the company and was in the interest of its shareholders."

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