The Company is committed to maintaining high standards of corporate governance and to applying the Principles of Good Governance set out in the revised Combined Code. The Directors can confirm compliance throughout the year with the revised Combined Code with the exception of: the Nomination Committee, which does not comprise a majority of independent non-executive directors. Whilst the Nomination Committee, which comprises the Chairman, the Senior Independent Non-executive Director and the Group Chief Executive, leads the process of Board appointments, the Chairman will consult with all the Directors on a regular basis throughout the process. In the opinion of the Board, the constitution of the Committee is therefore appropriate given the size of the Board and the process undertaken for Board appointments. Further detail of the appointment process is provided in the section on the Nomination Committee below. The terms of reference of the main committees of the Board of Directors were made available through the Company’s website only from October 2007, although they had been available on request throughout the period.

In respect of the re-election of Directors at the Company’s last AGM, the Chairman did not confirm to shareholders when proposing re-election that, following formal performance evaluation, the individual’s performance had continued to be effective and to demonstrate commitment to the role. However, the performance of those Directors who were so re-elected had continued to be effective and they had demonstrated commitment to the role. The Chairman also confirms such matters in relation to those Directors who are proposed for re-election at the AGM to be held in April 2008.