Northern announces that the term of 8,600,000 warrants to subscribe for 8,600,000 ordinary shares of 1p each at an exercise price of 2.25p per share (“Warrants”), held principally by directors and staff, has been extended by a period of 6 months until December 31st 2005. Under the terms of the warrant instrument, the Warrants were due to lapse on June 30th 2005.

The Remuneration Committee, and subsequently the Board of Directors, resolved to extend the exercise period of the Warrants to 31st December 2005 and on 30th June 2005, the Company received notification from all class warrant holders agreeing to the variation.

This decision has been taken after consultation, and in agreement with, HM Revenue & Customs in order to determine a clear and agreed tax treatment in respect of the Warrants for both the Company and its employees, and to also extend expiry through and beyond the publication of the 2005 interim results.

The directors of the Company hold the following number of Warrants:

Contacts:
Chris Roberts / Ben Simons
Hansard Communications
Tel. 020 7245 1100