AB. Alliance Boots

RNS Number:6041Y
AB Acquisitions Limited
19 June 2007


AB Acquisitions Limited and the Boots Pension Scheme Trustee reach agreement in
principle in relation to funding and security for the Boots Pension Scheme.


London, 19 June 07. AB Acquisitions Limited and the Boots Pension Scheme Trustee
are pleased to announce that they have reached an agreement in principle in
relation to funding and security for the Boots Pension Scheme.


The package of measures agreed provides for significant cash contributions to
the Scheme as well as enabling the Scheme to benefit from a large amount of
additional security which further protects the long-term benefits of the
Scheme's members.


Following the acquisition of Alliance Boots plc by AB Acquisitions Limited, AB
Acquisitions Limited has agreed to fund the Scheme specific funding target as of
1 April 2007. AB Acquisitions Limited will contribute a sum of #418 million of
cash in instalments over the next 10 years, which amounts to a net present value
of #305 million in cash.  A bank guarantee and specific security package will be
put in place to back these cash instalments.


In addition, AB Acquisitions Limited has agreed that the Scheme will benefit
from an additional #600 million security package designed to protect the
long-term benefits of the members by sharing in certain security granted to the
senior lenders by the AB Acquisitions Group in connection with the financing of
the acquisition.  The Scheme will receive a #200 million priority claim in
respect of any security proceeds derived from the security package together with
an additional #400 million claim on such proceeds which will rank alongside the
claims of the senior lenders.


Commenting on the agreement John Watson, Chairman of the Boots Pension Scheme
Trustee said:


"We are pleased to have reached a satisfactory agreement on the future funding
and security of the Boots Pension Scheme. All of our members will benefit from
the agreement and I am delighted that this period of uncertainty has come to an
end with this positive result.



Thanks to the efforts of all parties working through the complex issues, we now
have a common basis of understanding of the funding principles and actuarial
assumptions underlying the Scheme. We have reached a fair agreement that
provides significant security and future certainty to our members."



AB Acquisitions Limited commented:



"We are very pleased to have reached an agreement which will ensure that the
Boots Pension Scheme will remain well funded and that the long-term benefits of
the Scheme members will be safeguarded. We appreciate the efforts of all parties
involved in the talks and the assistance of the Pensions Regulator in helping us
to reach a satisfactory agreement."





                                    - ends -



For further information please contact:

AB Acquisitions Limited
Richard Constant                        020 7554 1400
Gavin Anderson & Company

Boots Pension Scheme
John Antcliffe                          020 7360 4900
Smithfield


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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