Chairman's AGM Statement

3I GROUP PLC
14 July 1999


                      3i GROUP PLC
          ANNUAL GENERAL MEETING - 14 JULY 1999
                            
                            
At the Annual General Meeting of 3i Group plc held today,
Sir George Russell, the chairman, made the following
comments:-

'In general, we have a very positive outlook for our
business.  The rapid development of new technologies is
generating plenty of opportunities for venture capital,
which is very much a growth industry in Europe.  In the
UK, the strength of sterling continues to cause
difficulties for exporters, but the overall level of
confidence was higher in our latest Enterprise Barometer
than it has been for quite some time.  The UK Barometer,
which we published in May, showed the largest increase in
quarterly confidence levels since 1992.  In continental
Europe, our investee businesses are also generally
displaying confidence in the future.

'In terms of new investment, the first quarter of the
current year has started well and we have been
particularly busy in continental Europe.  We are
continuing to be very active in the technology area, both
in the UK and internationally.  I am also pleased to
report that we have continued to achieve a good flow of
profitable realisations.'

For further information:

Charles Richardson, 3i                Tel: [phone]
Chris McDermott, Shandwick            Tel: [phone]