Dispute Settlement

ANDREWS SYKES GROUP PLC
30 July 1999


    Andrews Sykes agrees settlement of pumps dispute

Andrews Sykes announces that it has  settled the  damages
claim against it by Sterling Fluid Products Ltd  for
breach of a supply agreement concerning Sykes Pumps.  In
terminating the agreement in 1995, Andrews Sykes  re-
acquired  the exclusive rights which had been granted to
SFP by Andrews Sykes' previous management to use the
Sykes Pumps name in the USA, Iran and Iraq  and the sole
right to market Sykes pumps in those territories.

The settlement and related costs will give rise to a one-
off exceptional charge of £1.4 million before tax in
Andrews Sykes Group's accounts for the current year.

Mr J G Murray, chairman of Andrews Sykes said: 'We are
pleased to have reached a settlement of this dispute,
removing a significant contingent liability from the
accounts.  But more importantly for the future of Andrews
Sykes' business, we are delighted to have re-gained sole
right to use the Sykes name worldwide, including the USA,
one of the world's largest markets for pumps.  Since
regaining that right we have made  significant progress
in establishing our own  foothold in the US.  It has also
allowed us to set up much more cost effective and
flexible sourcing for the pumps '.


Note to editors:

In 1989, prior to the present management, Andrews Sykes
had granted Sterling Fluid Products Ltd the right to
manufacture Sykes pumps and the   right to market them
exclusively in the USA, Iran and Iraq and, on a non-
exclusive basis, outside Europe and the Middle East.
This has now been terminated.

For further information

Simon Harbridge              
Andrews Sykes Group          Tel:  [phone]
                             
Issued by                    
John Goold                   
Shandwick International      Tel:  [phone]