Coats Viyella PLC

Guinness Peat Group PLC
29 December 2000




                 Guinness Peat Group plc

                  Re: Coats Viyella plc

Guinness  Peat Group plc ('GPG') is pleased to  note  the
announcement by Coats Viyella plc ('Coats')  that  it  is
appointing  M.  Noel Goutard, M. Eduardo Malone  and  Mr.
Blake  Nixon  as non-executive directors  of  Coats  with
effect  from 10 January 2001.  Blake Nixon is a  director
of GPG.

It  also  notes  that the Board of Coats  has  agreed  to
reduce   the  number  of  directors  which  there   would
otherwise be to nine by the Company's next Annual General
Meeting.

As  a  result, GPG has withdrawn its requisition  for  an
Extraordinary General Meeting of Coats.

As   indicated   in   its  statement   accompanying   the
requisition,  GPG  believes that  the  addition  of  non-
executive directors will be of real and effective benefit
to   Coats   as  will  their  review,  at  the   earliest
opportunity, of the Company's strategic direction.