Issue of Debt

Guinness Peat Group PLC
02 October 2006

                            Guinness Peat Group plc



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





"GPG FINANCE PLC



2006 CAPITAL NOTE OFFER - GENERAL OFFER - ALLOTMENT ANNOUNCEMENT



In accordance with NZX Listing Rule 7.12.1, GPG Finance plc announces that it
has issued $168,284,000 in principal amount of New Capital Notes, under the
General Offer described in the registered prospectus and investment statement
dated 31 July 2006 (Offer Document).



In relation to the New Capital Notes issued:



(a)          The class of security issued is unsecured subordinated capital
notes having an initial election date of 15 November 2012 (New Capital Notes).
The ISIN is NZGFND0003S2.



(b)          $168,284,000 in principal amount of New Capital Notes have been
issued.



(c)          The issue price was $1 for each $1 in principal amount of New
Capital Notes.



(d)          The New Capital Notes issued were paid up in cash.



(e)          The New Capital Notes have been paid up in full.



(f)           The percentage of the total class issued is 48.1%.



(g)          The issue of New Capital Notes has been undertaken to augment
existing facilities and provide Guinness Peat Group plc with increased financial
flexibility for its ongoing business requirements.



(h)          The authority for the issue was the Offer Document and applications
submitted under the General Offer.



(i)           The terms of the issue are set out in the Offer Document and in
the trust deed relating to the New Capital Notes dated 31 July 2006.



(j)           $350,000,000 in principal amount of New Capital Notes are in
existence after the issue.



(k)          The New Capital Notes have been allotted as applications have been
processed since the General Offer opened on 31 August 2006. The General Offer
closed on 29 September 2006."





J R Russell

Company Secretary

Guinness Peat Group plc

0207 484 3370

2 October 2006


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