REDS CONFIRM INVESTMENT TALKS

Liverpoolfc.tv 04 December 2006
Liverpool Football Club today confirms that it has entered into a period of exclusive negotiations with Dubai International Capital ('DIC') about a possible investment in the club.
No deal has yet been agreed and the detail of any transaction which may or may not include a formal offer by DIC for Liverpool Football Club is still to be confirmed. The Club aims to keep Liverpool shareholders and supporters fully informed and will make a further statement as soon as possible.

DIC is the international investment arm of Dubai Holding, which owns and manages a diversified portfolio of companies operating in the fields of leisure, healthcare, technology, finance, real estate, research, education, tourism, energy and communications. DIC has a strong track record in both the leisure sector and in the UK. In 2005, for example, it bought Tussauds, the largest operator of visitor attractions in Europe, for $1.5bn. It also owns the Travelodge hotel group. Its parent company owns various London hotels, including the Carlton Tower.

Rick Parry, Chief Executive of Liverpool, said: "This is the latest step on the road of finding the long-term investment that the Club needs. DIC is a potential investor with the resources and philosophy that we believe could make them an ideal partner. Already they have demonstrated a full understanding of, and respect for, the club's heritage and values. We also believe they share our passion for success. In particular, DIC believes in investing in the businesses it acquires. This is very important in terms of the proposed new stadium, which is key to plans for the regeneration of the local community. On the pitch, Liverpool remains focused on winning and, here again, this is all about doing a deal that gives us the long-term resources to do that."

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers (the "Code"), if any person is, or becomes, 'interested' (directly or indirectly) in 1% or more of any class of "relevant securities" of DIC or of Liverpool, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of DIC or of Liverpool, they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of DIC or of Liverpool by Liverpool or by DIC or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.

Interests in securities'arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.