Note: The pension deficit as at 27 December 2008, shown on the balance sheet in the Group's 2008 Annual Report and Accounts, which is calculated under International Accounting Standard 19, was £122.2m. As will be disclosed in the forthcoming Half Yearly Report (22 July 2009), this is expected to have increased by around £10m to c. £130m at 13 June 2009.

Under the agreement, Galiform's contributions to the pension deficit will be as follows:

An element of each of the annual contributions is, however, contingent on the attainment of an agreed level of performance of the Group in the financial year that ends during the relevant pension year. The contingent payments are:

If payable, these contingent payments will be made shortly after the relevant audited accounts have been signed. All other amounts are payable in equal monthly instalments during the relevant pension year.

The agreement will result in an expected cash contribution to the pension deficit in the current financial year (ending 26 December 2009) of £21m. This includes payments in respect of the previous agreement with the trustees, reached in 2006.

Galiform's Chief Executive, Matthew Ingle said:

"I am very pleased that we have reached an agreement on the funding of the pension scheme for the next three years. The terms of the agreement are testimony to the strength of our relationship with the scheme's Trustees, and their recognition of the economic and business environment that the Group is operating in."

Half Yearly Report

Galiform will issue its Half Yearly Report on 22 July 2009.