Further re Coats

Guinness Peat Group PLC
13 May 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.

                                                                    13 May 2004

                            GUINNESS PEAT GROUP plc
             EXTENSION OF OFFER FOR A SHARES IN COATS GROUP LIMITED

On 14 April 2004 Guinness Peat Group plc ("GPG") announced the terms of an offer
(the "Offer") to purchase those shares in its subsidiary company Coats Group 
Limited that it did not already own. The Offer was made by means of an offer 
document dated 14 April 2004 (the "Offer Document"). Definitions used in the 
Offer Document also apply in this announcement, unless the context otherwise 
requires.

On 6 May 2004 GPG announced that it was extending the Offer for a period of 7
days, the Offer to remain open for acceptance until 5.00 pm (BST) on 12 May
2004. As at 5.00 pm (BST) on 5 May 2004 (being the first closing date of the
Offer), GPG had received valid acceptances of the Offer in respect of, or
conditionally agreed to acquire, a total of 55,481,643 A Shares, representing
approximately 98.2 per cent. of the issued A Shares.

As at 5.00 pm (BST) on 12 May 2004 (being the second closing date of the Offer),
valid acceptances of the Offer had been received in respect of a further 987,533
A Shares, representing approximately 1.75 per cent of the issued A shares. In
aggregate, as at 5.00 pm (BST) on 12 May 2004 GPG had received valid acceptances
of the Offer in respect of, or conditionally agreed to acquire, a total of
56,469,176 A Shares, representing approximately 99.9 per cent. of the issued A
Shares.

As announced previously, whilst the Offer is unconditional as to acceptances,
not all of the conditions to which the Offer is subject have yet been fulfilled.
In particular, although it has been confirmed that the Resolutions and
consequential changes to the articles of association of Coats Group Limited have
been filed with the Registrar of Companies in the British Virgin Islands a
certified copy of the new articles of association has not been received.

As a consequence of this, GPG announces that it is extending the Offer for a
further period of 7 days. The Offer will, therefore, remain open for acceptance
until 5.00 pm (BST) on 19 May 2004.

A Shareholders who wish to accept the Offer and who have not already done so
should complete and sign the Form of Acceptance and return it as soon as
possible and, in any event, so that it is received by post or (during normal
business hours only) by hand at DLA, 3 Noble Street, London EC2V 7EE (for the
attention of Jonathan Richards) no later than 5.00 pm (BST) on 19 May 2004. The
procedure for acceptance of the Offer is set out in Part 1 of the Offer Document
and in the Form of Acceptance.

GPG's Annual General Meeting took place yesterday at which its shareholders
approved (inter alia) the Capitalisation Issue. The GPG Shares to be issued
pursuant to the Capitalisation Issue will be allotted at 5.00 pm (BST) on 24 May
2004, with dealings in those shares expected to commence the next day. The New
GPG Shares will also be allotted on 24 May 2004 with their admission to the
Official List becoming effective and dealings in those shares commencing on 25
May 2004. Accordingly, it is expected that the Offer will become unconditional
in all respects at that time, when the Consideration (both Initial and
Additional) will be settled in the manner set out in the Offer Document.

Enquiries:

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

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

This announcement is not intended to and does not constitute, or form part of, 
an offer or an invitation to purchase or subscribe for any securities.

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 jurisdiction. Coats 
shareholders who are not resident in the United Kingdom should inform themselves 
about and observe any applicable requirements.

The New GPG Shares to be issued pursuant to the Offer have not been and will not 
be registered under any relevant securities laws of any state outside the United 
Kingdom or Australia and are not being offered, sold or delivered in connection 
with the Offer outside the United Kingdom, the British Virgin Islands, Jersey or 
Switzerland. Following the Offer, New GPG Shares should not be offered, sold, 
resold or delivered, directly or indirectly, outside the United Kingdom, 
Australia, New Zealand, the British Virgin Islands, Jersey or Switzerland.





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