Van Leer Metallized Products Ltd Acquired

API Group PLC
4 April 2000

                        API EXPANDS IN METALLISED PAPER
                                       
API  Group  plc ('API') announced today the acquisition of the  business  and
certain  assets  of  Van Leer Metallized Products Limited,  a  subsidiary  of
Huhtamaki Van Leer OYI (the 'Vendor') for a cash consideration (subject to  a
net asset adjustment) of £1.0 million, payable on completion.

The  acquired business is based in Caerphilly, Wales and is engaged primarily
in  the  production  of metallised paper for two main product  areas,  labels
(primarily  for the beer market) and inner-liners for cigarette packets.   In
the  year  ended 31 December 1999, the acquired business generated  sales  of
£18.8  million and a loss before interest and tax of £1.5 million.  As at  31
December  1999,  attributable net assets of the acquired business  were  £3.8
million.

This acquisition complements API's current activities in metallised paper and
will  provide  the  Group with a leading position in this market  in  Europe.
Opportunities  to  enhance  revenues and  improve  costs  and  benefits  from
economies of scale are expected.

Commenting on the acquisition, Michael Smith, API's Chief Executive, said:

'API  is  committed to the continued development of its position as a leading
global   supplier   of  metallic  effect  products.   This  acquisition,   in
conjunction with our own operations in Macclesfield, provides the Group  with
greater  critical  mass  in  the European metallised  paper  market  and  the
capacity for future growth in this expanding sector.

'We  have  identified  a  number  of  areas  where  we  believe  productivity
improvements  can be made and we anticipate that the Caerphilly business  can
become profitable quickly as part of a group focused on the metallised  paper
market.  The acquisition is an excellent fit and will allow us to  capitalise
on our investment in this growth area.'


Enquiries:

Michael Smith, Group Chief Executive
API Group plc                      Tel: [phone]

Tim Spratt, Director
Financial Dynamics                 Tel: [phone]