Directors' Remuneration Report

Unaudited Information

Introduction

This report describes the current arrangements for the remuneration of Executive Directors and, where relevant, other Board members and senior executives, as agreed by the Remuneration Committee (the "Committee") in 2005. Except as detailed below, these arrangements are likely to continue to apply in future years, unless there are specific reasons for change, in which case shareowners will be informed appropriately.

This report complies with the requirements of the Companies Act 1985 (in particular Schedule 7A - Directors' Remuneration Report) and of the Combined Code.

The Board has delegated to the Committee authority to review and approve the annual salaries, incentive arrangements, service agreements and other employment conditions for the Executive Directors, and to approve awards under our share based plans (see Overview of current remuneration elements for executives including Executive Directors). The Committee also oversees remuneration arrangements for our senior executives to ensure they are in alignment with remuneration for the Executive Directors. The terms of reference of the Committee are available for inspection on our website.