Scheme Specific Funding Agreement

Agreement has been reached between Uniq Plc, the European chilled convenience food group, and Uniq Pension Scheme Trustees Limited on a scheme specific funding basis in relation to a valuation of the Uniq approved pension scheme carried out at 1st April 2006.

A copy of the agreements will be placed on the Company's web site (www.uniq.com) as soon as possible. The key points of the agreements are as follows:-

• The funding position of the Scheme on a scheme specific funding basis at 1 April 2006 was a deficit of £130m. This compares with a deficit at the same date of £97.4m on an IAS basis. The main difference being the assumption made in relation to longevity. In the IAS 19 figures stated by the Company in its interim results to 30 June 2007 the Company has already reflected a further £20m for increased longevity compared to April 2006.
• The £84.5m that was placed in an account for the benefit of the Scheme in April 2007 (as announced) and a further £2.5m that has been added by the Company (giving a total of £87m plus accrued interest) will be maintained in the account and, to the extent that such funds are needed to cover the deficit, will be transferred to the Scheme when it is tax efficient for the Company to do so (but in any event by no later than 31 March 2017). The Company has granted security over the account to the Trustee.
• No further cash sums (other than normal pension contributions) will be made to the Scheme. The remaining deficit is expected to be made good by market performance. This position will be reviewed at the time of the 2009 valuation.
• To protect the interests of the Trustee in the initial phase of the recovery period, the Company has given certain undertakings to the Trustee (see footnote for detail).

Enquiries to: Martin Beer, Group Finance Director, Uniq Plc 01753 276011

Footnote :

The undertakings given by the Company require the consent of the Trustee before the Company:

These undertakings will last until the next scheme specific funding position is agreed based on a valuation as at 1st April 2009.