Acquisition

3i Group PLC
9 October 2000


3i Group plc
www.3i.com


3i acquires Venture Capital Fund Management Company in Austria

3i Group plc ('3i'), Europe's leading venture capital company,
announces that it has acquired Bank Austria TFV High Tech-Unternehmens
Beteiligung GmbH ('BA TFV'), a venture capital fund management
company, together with the whole of the Bank Austria High Tech Fund ('the Fund')
which is managed by BA TFV.  BA TFV is based in Vienna and specialises in
investing in early stage technology businesses.  The Fund has equity
investments in 13 software, IT and healthcare businesses located in
Austria and Germany.

3i Group plc is paying initial consideration in aggregate of Euro75.2
million (£45.3 million) to acquire:
*80% of the issued share capital of BA TFV. The remaining 20% of BA TFV
is held by Technologieholding VC GmbH, an indirect subsidiary of 3i Group
plc, acquired when 3i Deutschland GmbH purchased the German venture capital
business TH Technologieholding GmbH in February this year.
*The whole of the Fund.
*100% of the issued capital of TFV Technologie-Venture Beteiligungs AG
('TFV'), the holding company through which the management vendors held
their interest in BA TFV and the Fund.
The consideration comprises a payment of Euro73.8 million (£44.5 million) in
cash at completion and the allotment of 49,819 new shares in 3i Group plc.
The vendors are Bank Austria (which owned 26.7% of the BA TFV management
company and 93.75% of the Fund) and the management of BA TFV, Mr Reinhard
Jonke and Mr Heinz Rieder and their wives (who, through their ownership
of the entire issued share capital of TFV, held 53.3% of BA TFV and a
6.25% interest in the Fund).

Further consideration may become payable by 3i if the eventual realisation
value of the Fund investments received by 3i exceeds a threshold of Euro125.4
million (£75.6 million).

BA TFV will be renamed 3i Austria GmbH. The current managing director of
BA TFV, Mr Reinhard Jonke, has entered into a new employment agreement
for an initial period of three years as Managing Director of 3i Austria.
Mr Heinz Rieder will retire as planned. The 49,819 shares of 50p of 3i
Group plc forming part of the initial consideration have been allotted to
Mr Reinhard Jonke, who has agreed to retain these shares for a minimum of
three years.

This acquisition in Austria continues 3i's strategy of expanding its
network in key European markets. Dr Richard Summers, Executive Director
of 3i Group plc for continental European and technology investment
commented 'The team led by Reinhard Jonke gives 3i an immediate position
in the developing Austrian venture capital market. In addition to 3i's
global technology capabilities, 3i will introduce its expertise in
management buyouts in due course. The addition of the office in Vienna
increases 3i's network to nine countries in Europe.  This acquisition
clearly fits our strategic objectives of expanding our network and
consolidating our position as a leading European technology investor.'

Reinhard Jonke added, 'This is an extremely exciting development. 3i is
a global venture capital company and this will create attractive
opportunities for the investment team and our portfolio companies in terms
of exposure to international markets, expertise and contacts.'

This is the third acquisition 3i has completed in continental Europe
this year, following its acquisition of TH Technologieholding GmbH in
Germany in February and SFK Finance Oy in Finland in June.

Note: Euro/Pound Sterling rate at 29 September 2000 applied at £1.00 =
Euro1.6591

Notes to Editors:
3i Group plc is Europe's leading venture capital company.  The Group
invests in ambitious, growing businesses in all sectors.  It provides
funding for early stage, growth, management buy-outs and management
buy-ins. 3i operates in eight European countries and has two offices in
Asia and two in the USA.  Overall, 3i has invested almost £12 billion
in over 13,200 businesses and currently has a portfolio of investments
in around 3,000 companies. 3i's portfolio was valued at 31 March 2000 at
approximately £6 billion.

BA TFV is an Austrian venture capital fund management company.  It was
established in 1996 by Mr Reinhard Jonke and Mr Heinz Rieder with backing
from Bank Austria.  BA TFV has four employees and manages the Bank
Austria High Tech Fund, which has equity investments in 13 early stage
technology companies.


For further information, please contact:

3i Austria (BA TFV) (Vienna): Reinhard Jonke - [phone]
3i Germany (Munich):Rudolf Franz - [phone]
3i plc (London): Liz Hewitt - [phone]