Waterford Wedgwood plc

Update on Financing

Waterford Wedgwood plc ('Waterford Wedgwood', the 'Group' or the 'Company'), the leading international luxury lifestyle group, announces that it continues to be in discussions with a number of interested institutional investors regarding a possible investment in the Company. As indicated in the announcement of November 17, 2008, it is expected that a more comprehensive financial restructuring of the Group will be a pre-condition to any such partner making an investment, which investment would therefore be larger than the Company's originally planned equity funding. 

In view of the above, while the Company continues this process, the directors have determined not to effect the semi-annual coupon payment on the Group's 9⅞% €166,028,000 Mezzanine Notes (the 'Notes') today. The Company has the benefit of a 30 day grace period, starting on December 1, 2008, in respect of such coupon payment. The Group's senior lenders are supportive of this approach.  

In addition, as part of regular and ongoing discussions, the Group's senior lenders have agreed to a forbearance in respect of certain conditions of the Group's facility agreement. Specifically, this forbearance relates to a cross-default under the facility agreement occasioned by the non-payment of the Notes coupon as indicated above, the breach resulting from the testing of covenants which occurs if the Company does not maintain €15 million of available but undrawn credit under the facility agreement (the majority of which will instead be used by the Group to continue to support its operations), and the requirement under the Group's facility agreement to raise an aggregate €150 million of new equity (of which €79.6 million has already been raised under the recently completed open offer) by no later than November 30, 2008.  While this forbearance is for the period to December 5, 2008, the Company is continuing its discussions with its senior lenders in parallel with ongoing discussions with the interested institutional investors.

The directors of the Company believe that the continued support of its senior lenders is essential to give the Group the necessary stability in which to progress its comprehensive financial restructuring. While the directors are confident of continuing these investor and senior lender discussions, there can be no certainty that successful agreements will be reached, particularly in the current continuing extraordinary market conditions.

The Group and its management remain committed to its customer and supplier relationships and to the long-term success of Waterford Wedgwood.

1 December, 2008

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