Chairman's Statement

Dinkie Heel PLC 11 May 2001 At the annual general meeting of Dinkie Heel plc held today Mr Richard Organ, Chairman, said that he expects the company to make a slow return to profit. He said that it will take more than a year to realise this objective and that the company will be unlikely to be able to recommend a return to dividend payments while the process continues. Re-organisation will give rise to exceptional costs, currently estimated at £250,000. It is expected, in due course, to realise a premium over book value on the sale of the freehold premises in Manchester.