CHERTSEY, U.K., June 5, 2002 (PRIMEZONE) -- In response to recent press comment regarding its U.S. operations, Regus (Nasdaq:REGS) confirmed that it has been taking action to resolve the trading situation at its U.S. subsidiary, which incurred losses of 9.7 million pounds in the quarter ended March 31, 2002. These actions included consideration of filing for Chapter 11, which could have assisted in the restructuring of the U.S. subsidiary. However, following the successful restructuring of its leases with U.S. landlords and the implementation of other cost control initiatives, the possibility of Chapter 11 is now considered remote.
Commenting, Mark Dixon, Chief Executive of Regus, said: "We have successfully repositioned our U.S. business with the assistance and support of our U.S. landlords, resulting in cash savings over the next twelve months of approximately $20 million. We believe our U.S. business is now better placed to face the continuing challenges ahead in the U.S. and, as a management team, we will continue to take all necessary actions on a global basis to drive Regus to improved profitability."