Issue of Equity

Guinness Peat Group PLC
24 May 2004


For immediate release

                                                                    24 May 2004
                            
                               GUINNESS PEAT GROUP plc

                        OFFER FOR A SHARES IN COATS GROUP LIMITED


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

As was previously announced would be the case, the Offer was closed for
acceptance at 5.00 pm (BST) on 19 May 2004.  In aggregate, at that time GPG had
received valid acceptances of the Offer in respect of, or conditionally agreed
to acquire, a total of 56,469,649 A Shares, representing approximately 99.9 per
cent. of the issued A Shares.



The New GPG Shares have been allotted today to those shareholders who accepted
the offer; their admission to the Official List will become effective and
dealings in those shares will commence on the London Stock Exchange on 25 May
2004.  In consequence, the Offer has become unconditional in all respects and
the Consideration will become due for settlement.



A Shareholders who accepted the Offer before 21 May 2004 will shortly receive a
share certificate from GPG's registrars in respect of, or have credited to their
CREST accounts if they so elected, the New GPG Shares allotted in respect of the
Initial Consideration and Additional Consideration.  The cash element of the
Initial Consideration will be sent out tomorrow.


                        INCREASE IN ISSUED SHARE CAPITAL



Guinness Peat Group plc, having today allotted and issued 75,754,914 ordinary
shares of 5p each in respect of the offer for the 'A' ordinary shares of Coats
Group Limited and a further 70,795,434 shares in respect of the 2004
Capitalisation Issue, announces that its issued share capital is now 854,504,768
ordinary shares of 5p each.  It is confirmed that application has been made to
the UK Listing Authority and the London Stock Exchange for both allotments to be
admitted to the Official List and dealings will commence on 25 May 2004.

Enquiries:

Guinness Peat Group plc
Richard Russell, Company Secretary 020 7484 3370


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.




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