Eurotunnel Strengthens Its Position as Cross-ChannelMarket Leader and Increases Freight Shuttle...

Business Editors

PARIS--(BUSINESS WIRE)--April 19, 2000

Eurotunnel, the operator of the high-speed transport system linking the UK to Continental Europe through the Channel Tunnel, today announced its first quarter results.

1. THE DOVER-CALAIS CROSS-CHANNEL MARKET

During the first quarter of 2000, the Dover-Calais cross-Channel truck traffic grew by 16%, demonstrating the strong growth trend of this market sector. The market for cars fell by 19%, reflecting the effect of the abolition of duty free and the overall increase in ticket prices.

2. TUNNEL TRAFFIC

Eurotunnel's freight shuttle service

The number of trucks carried on the freight shuttle service increased substantially by 42% during the first quarter of 2000, 26 percentage points higher than the total truck market. The beneficial impact from the increase in Eurotunnel's freight shuttle capacity with three new shuttles coming into service in 1999 (seven shuttles were in service by January 1, 1999, and 10 by January 1, 2000) is becoming apparent. Eurotunnel's market share has increased from 38% during the first quarter of 1999 to 46% for the same period in 2000.

A new monthly record was set in March of this year with 98,157 trucks, as well as a new daily record of 4,156 trucks on March 29.

Eurotunnel's passenger shuttle service

The number of cars carried on the passenger shuttle service fell by 17% during the first quarter of 2000, while the total market fell by 19%. Eurotunnel has therefore performed better than the market and continues to strengthen its position as market leader. Eurotunnel's market share has increased from 59% in the first quarter of 1999 to 61% for the same period in 2000.

            First quarter 2000 First quarter 1999 % change  Total cross-
                                                             Channel
                                                              market

Freight
  shuttles   263,830 trucks    186,190 trucks       +42%       +16%

Passenger
  shuttles   591,095 cars(a)   710,933 cars(a)      -17%       -19%
              13,275 coaches   16,614 coaches       -20%       -13%

(a) Including motorcycles, cars, trailers, caravans and campervans

Railway Services

    Eurostar passenger traffic through the Channel Tunnel increased by
5% and rail freight tonnage increased by 6% during the first quarter
of 2000 compared with the first quarter of 1999.


                    First quarter 2000   First quarter 1999   % change

Eurostar            1,494,621 passengers 1,428,652 passengers    +5%

Freight trains        733,997 tons         693,292 tons          +6%

3. OPERATING REVENUE LESS COST OF SALES REMAINS STABLE

    Operating revenue from Eurotunnel's passenger and freight shuttle
services increased by 30% to (pound)65.2 million during the first
quarter of 2000, compared with the same period in 1999. This increase
is due to the significant growth of truck traffic and the increase in
prices. Revenues from retail and other activities decreased by 66% to
(pound)13.9 million, as a direct result of the abolition of duty free
sales. Revenues from the railways amounted to (pound)51.0 million
during the first quarter of 2000, and consist mainly of the payments
guaranteed under the Minimum Usage Charge.
    Eurotunnel's first quarter 2000 unaudited operating revenue
amounted to (pound)130.1 million during the first quarter of 2000, a
9% decrease at constant exchange rates compared with the same period
in 1999. However, Eurotunnel's accounts now only show its share of the
margin from the retail operator and no longer show retail sales and
the associated costs (mainly cost of goods sold). Therefore, the only
relevant comparison is that of Eurotunnel's operating revenue less
cost of goods sold. Comparison on this basis between the first quarter
of 2000 and the first quarter of 1999 shows that operating revenue
less cost of sales remains stable (-1%) at (pound)126.3 million. As
already indicated from the figures for the third and fourth quarters
of 1999, the company has succeeded in compensating for the significant
negative impact of the abolition of duty free.

                      First quarter  First quarter          First quarter
                        2000          1999         % change    1999
(pound)m               Unaudited(a)  Restated(a)            Reported(b)

Shuttle Services         65.2          50.0          +30%      52.3
Retail and other         13.9          40.8          -66%      42.7
Railways                 51.0          52.6           -3%      55.4
Operating revenue       130.1         143.4           -9%     150.4
Cost of sales             3.8          16.3          -76%      16.9
Operating revenue less
 cost of                126.3         127.1           -1%     133.5
  sales

(a) Exchange rate:(pound)1 = FRF10.96
(b) Exchange rate:(pound)1 = FRF9.84

Patrick Ponsolle, Group Executive Chairman, said: "These results confirm our expectations of the developments within the market since the abolition of duty free. The cross-Channel market for cars and coaches, which has seen a marked decrease following this abolition, should begin to stabilize after the summer before growing again in the long term. The truck market, for which we have increased our capacity, is experiencing strong growth.

"Our results for the first quarter of this year are in line with our objectives for 2000 (an operating profit higher than the base case in the 1997 Prospectus) and for 2002 (100% cover of our interest charges by our operational cash flow after capital expenditure)."

Note to Editors

Eurostar is a separate company to Eurotunnel and is the international high-speed rail service between London and Ashford, Kent in the UK and Paris, Lille, Calais in France and Brussels in Belgium. Eurostar Group determines the commercial direction and service development of the overall Eurostar business. Eurostar services are jointly operated by Eurostar (UK) Limited, French Railways (SNCF) and Belgian Railways (SNCB).

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