AMEC dispute

10 Apr 2006 17:09

Star Energy Group PLC10 April 2006 Star Energy Group plc ('Star Energy' or the 'Company') As announced in the Company's preliminary results on 3 April 2006, Star Energyintends to mitigate the £11m cost overrun incurred by AMEC in completing itswork on the Humbly Grove gas storage project by using the adjudication clause inits contract with AMEC, and if necessary, arbitration. Star Energy has been informed that the adjudication process ruled in favour ofAMEC. Regardless of this disappointing but expected ruling, Star Energy remainsconfident that the arbitration process will result in a significant amount ofthe additional costs being recovered by Star Energy. It is anticipated that theresult of the arbitration process will be announced towards the end of 2006. Enquiries: Star EnergyRoland Wessel, Chief Executive 0207 730 6663 This information is provided by RNS The company news service from the London Stock Exchange