Dr Nolan's resignation will take effect from 1 January 2002.

The company has begun to look for a successor to Dr Nolan. Until a replacement is appointed, Sir John Parker, Lattice Group Chairman, is also assuming the responsibilities of Chief Executive.

Sir John said: "Phil Nolan's contribution to Lattice Group in the year since it was demerged from BG Group has been considerable. He has also made a major contribution in successfully running Transco over the last few years. He was approached to run Eircom and we can well understand the attractions of the offer for him. He leaves with our best wishes for the future.

"We have recently appointed two new executive directors as part of our restructuring into three business groups which gives us a strong management team to run the company's operations. I will be assuming the CEO's responsibilities until a successor is found and drawing on Phil Nolan's advice and support during the initial transitional period."

Note to Editors

1. Lattice Group is one of three successor companies of what was formerly British Gas plc. Formed from a second demerger in October 2000, it specialises in the safe and reliable provision, management and servicing of infrastructure networks. It comprises three business groups:

• Transco - the regulated pipeline network, headed by Group Managing Director Colin Matthews, who was recently recruited from British Airways.
• Telecoms - headed by Group Managing Director Lawrie Haynes.
• Lattice Enterprises - the portfolio of unregulated businesses, including Advantica, Energy Services, Properties, Metering, First Connect and The Leasing Group, headed by Group Managing Director Nick Woollacott.

2. Biographical details of Dr Nolan and Sir John Parker are available on request.