Issue of Debt

Guinness Peat Group PLC
01 September 2003


              ANNOUNCEMENT TO THE LONDON AND AUSTRALIAN EXCHANGES


            Offer of Capital Notes in New Zealand by GPG Finance plc


The following is the text of an announcement made today to the New Zealand
Exchange by GPG Finance plc, a wholly owned subsidiary of Guinness Peat Group
plc,.

"GPG Finance plc announces the Capital Notes Firm Pool closed on 29 August 2003.
Capital Notes with an aggregate principal value of NZ$200 million have now been
allocated to clients of members of NZX and invited financial institutions.

GPG Finance has previously announced its intention to accept subscriptions under
the Public Pool up to the maximum amount of NZ$25 million of Capital Notes, of
which in excess of 50% has already been allocated.  Applications in the Public
Pool will continue to be accepted subject to availability up to the Closing Date
of 4 September 2003.

The Capital Notes will pay a minimum coupon of 8.6% per annum payable quarterly
and have an initial term of approximately 5 years.  The Capital Notes are
guaranteed on an unsecured and subordinated basis by Guinness Peat Group plc.

To obtain a copy of the combined Investment Statement and Prospectus, investors
should contact their stockbroker or financial advisor or call 0800 555 555.

JBWere (NZ) Limited is the Lead Manager and Organising Broker.

Under the terms of the offer no offer or invitation is made in any jurisdiction
other than New Zealand.  Any person not resident in New Zealand who receives the
Investment Statement and Prospectus should not rely or act upon the offer made
in that document.  GPG Finance has reserved the right to reject any subscription
received in respect of the Capital Notes which is post marked other than from
within New Zealand or which GPG Finance or any agent of GPG Finance believes may
originate from outside New Zealand."


Richard Russell
Company Secretary
Guinness Peat Group plc
London   1 September 2003


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