Offer Update

Guinness Peat Group PLC
10 October 2000

DISCLOSURE OF INTEREST IN SHARES PURSUANT TO 
SECTIONS 198 TO 202 OF THE COMPANIES ACT 1985

Further to its announcement on 3 October 2000 Guinness Peat Group plc and its
subsidiary companies ('the Group') hereby notify Staveley Industries plc
('Staveley') that consequent upon its Cash Offer Facility and a market purchase
of Ordinary 25p shares ('Shares') on 10 October 2000 the Group's interest in the
Shares of Staveley now amount to 100,380,352 representing 86.25% of the issued
share capital.  This holding is made up as follows:

Holding on 23 August 2000                              33,774,700
Valid acceptances of the Cash Offer at 9 October 2000  65,775,652
Market purchase on 2 October 2000                         350,000
                                                     ------------
                                           Total:     100,380,352
                                                     ------------
So far as the Group is aware, no person interested in the Shares is party to any
agreement or arrangement relating to the exercise of any rights conferred by
holding the Shares subject to this notification.

The Alternative under the Cash Offer Facility remains open for acceptance by
Staveley Shareholders until further notice.