AT its meeting on September 19th, 1996, the VHI board considered a report from a sub-committee in regard to management and strategic issues.

The chief executive has indicated to the board that he considers the report to have been unfair and imbalanced and prejudicial to his professional and business standing.

The board has agreed that the report should not be given further consideration.

The chief executive has concluded that the events of recent month have impaired his ability to serve the interests of the VHI, its members and its employees. Accordingly he has submitted and the board has accepted his resignation from the position of chief executive with effect from October 18th, 1996.

None of the parties involved will issue further statements on the matter.