PROPOSED ACQUISITION OF LEAPFROG PLACING AND OPEN OFFER INTERIM RESULTS FOR THE SIX MONTHS TO 29 FEBRUARY 2004

PROPOSED ACQUISITION OF LEAPFROG
PLACING AND OPEN OFFER
INTERIM RESULTS FOR THE SIX MONTHS TO 29 FEBRUARY 2004

• Leapfrog, a leading UK chain of nurseries, is to be acquired for a total consideration of £60 million, creating a division at the centre of Nord Anglia, which will be the market leader in terms of child places in the UK nursery sector.
• The Acquisition is to be partially funded through a Firm Placing and Open Offer, underwritten by Brewin Dolphin Securities Limited, to raise proceeds of £23 million.
• The Acquisition represents the implementation of Nord Anglia's strategy to strengthen its position in the UK nursery sector.
• The Acquisition will result in a step change in the scale of Nord Anglia's nursery division, with the Enlarged Group operating 73 nurseries in the UK, making it the second largest operator, by number of nurseries, in the UK and the largest by number of child places available.
• The Acquisition, Firm Placing and Open Offer are conditional, inter alia, on the approval of Nord Anglia shareholders. A circular giving further information about the Acquisition, Firm Placing and Open Offer and notice of an extraordinary general meeting will be issued shortly.

• an increase of turnover of 10.4% to £45.5 million (2003:£41.2 million)
• operating profit from continuing operations of £0.97m (2003: £2.1m), with the fall due to:
  • reduced contribution following regulatory changes affecting the Moscow School; and
  • higher than expected liabilities in the joint venture company, EduAction, resulting in a loss in the period of £536,000.
• the announcement of the proposed disposal of the UK Schools division
• Kevin McNeany to become non-executive Chairman from 31 August 2004