Grant Thornton International acts decisively to protect reputation

Press Release - January 2004

Grant Thornton International expels Grant Thornton SpA from international network

Today (8 January 2004) Grant Thornton International announced that it has terminated its relationship with its member firm Grant Thornton SpA in Italy with immediate effect.

The decision has been taken by Grant Thornton International during the course of its ongoing internal investigation into Grant Thornton SpA and the Parmalat matter.

Said David McDonnell, chief executive of Grant Thornton International: "Our first responsibility is to our clients around the world. They need to be assured of our commitment to maintain the reputation and integrity of Grant Thornton International. As a result of our ongoing investigation it is clear that Grant Thornton SpA will not be able to operate in the forseeable future in an effective way to protect the reputation of the Grant Thornton International name and the reputation of the other independent firms in the Grant Thornton International network.

"Grant Thornton SpA has been unable to provide sufficient assurances or access to the appropriate information and people in an acceptable timeframe. We have lost confidence in Grant Thornton SpA and are therefore acting clearly and decisively to protect our clients and the reputation of all of the other independent firms in the international network."

At this stage, Grant Thornton International is not in a position to disclose further details. Grant Thornton International will continue to cooperate with the authorities.

The expulsion of Grant Thornton SpA from the Grant Thornton International network of independent member firms is effective immediately. It means:

-	Grant Thornton SpA can no longer operate as part of the international network and cannot hold itself out as having any ongoing connection with Grant Thornton International or other independent Grant Thornton International member firms around the world
-	Grant Thornton SpA must, with immediate effect, cease to use the Grant Thornton name.
-	No further work will be performed by independent Grant Thornton International member firms on behalf of Grant Thornton SpA
-	Grant Thornton International is taking immediate action to provide alternative support for international clients of its other member firms doing business in Italy.

Background on Grant Thornton International
Grant Thornton International is a very strong international membership organisation, with each member firm independently owned and operated. Services are delivered nationally by the member and correspondent firms of Grant Thornton International, a network of independent firms throughout the world. Grant Thornton International is a non-practising international umbrella organisation and does not deliver services in its own name.

Each member and correspondent firm in Grant Thornton International is a separate independent national firm. These firms are not members of one international partnership or otherwise legal partners with each other, nor is any one firm responsible for the services or activities of any other. Each firm governs itself and handles its administrative matters on a local basis. Although many of the firms now carry the Grant Thornton name, either exclusively or in their national practice names, there is no common ownership among the firms or by Grant Thornton International.