Acquisition

Guinness Peat Group PLC
14 April 2004


For immediate release

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE 
UNITED STATES, CANADA, AUSTRALIA OR JAPAN.

                                                                   14 April 2004

                            GUINNESS PEAT GROUP PLC

                              COATS GROUP LIMITED

Guinness Peat Group plc ("GPG") announces that it today made a conditional offer
to purchase those shares in its subsidiary company Coats Group Limited ("Coats")
that it does not already own ("the Outstanding Coats Shares").

The Outstanding Coats Shares represent approximately 35.4 per cent of the Coats
shares currently in issue.  The consideration offered is 1.25 new GPG shares and
25p in cash for every Outstanding Coats Share.  The offer is conditional (inter
alia) on acceptances being received for at least 85 per cent of the Outstanding
Coats Shares.

RIT Capital Partners plc, Chapman International Investments Limited and LFG
Holdings Pty. Limited have each given written indications that they will accept
GPG's offer in respect of approximately 37.7 million Coats shares, representing
66.7 per cent of the Outstanding Coats Shares.

This offer values the Outstanding Coats Shares sought under the offer at
approximately £62.0 million and, if fully successful, would result in a 9.9%
increase in GPG's issued capital.  The value of the net assets at 31 December
2003 attributable to the Outstanding Coats Shares was £52.8 million.  In the
period to 31 December 2003 the profits attributable to the Outstanding Coats
Shares were £4.3 million.

Coats is a company incorporated in the British Virgin Islands.  In April 2003,
through its subsidiary Coats Holdings plc, it acquired Coats plc by means of a
public offer.  The core business of the Coats group is the manufacture,
processing and distribution of thread for industrial and domestic use.

Full ownership of Coats will allow GPG to acquire unrestricted control of the
Coats group and is expected to enhance the long term prospects for GPG from this
global business.


Enquiries:

Guinness Peat Group plc
Blake Nixon, Executive Director    020 7484 3370

Weber Shandwick Square Mile        020 7067 0700
Kevin Smith / Josh Royston


The Offer will not be made, directly or indirectly, in or into, or by the use of
the mails or any means of instrumentality (including, without limitation,
telephonically or electronically) of interstate or foreign commerce of, or any
facilities of a national securities exchange of the United States, Canada,
Australia or Japan. Accordingly, except as required by applicable law, copies of
this announcement are not being, and must not be, mailed or otherwise forwarded,
distributed or sent in, into or from the United States, Canada, Australia or
Japan. Persons receiving this announcement (including without limitation
nominees, trustees or custodians) must not forward, distribute or send it into
the United States, Canada, Australia or Japan.

The availability of the offer to Coats shareholders who are not resident in the
United Kingdom may be affected by the laws of the relevant jurisdictions.  Coats
Shareholders who are not resident in the United Kingdom should inform themselves
about and observe any applicable requirements.


                      This information is provided by RNS
            The company news service from the London Stock Exchange