Offer Update

Guinness Peat Group PLC
10 June 2003

For immediate release

10 June 2003


THIS ANNOUNCEMENT IS BEING RELEASED BY THE GUINNESS PEAT GROUP FOR INFORMATION
ONLY IN UNITED KINGDOM, AUSTRALIA AND NEW ZEALAND

IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR
INTO THE UNITED STATES, CANADA OR JAPAN


RECOMMENDED CASH OFFER COATS HOLDINGS PLC (FORMERLY AVENUE ACQUSITION PLC) FOR
COATS PLC


Coats Holdings PLC (formerly Avenue Acquisition plc), a UK unconsolidated joint
venture company in which the Guinness Peat Group holds an effective 50% voting
interest, today released an announcement, the text of which is as follows:


   UNCONDITIONAL RECOMMENDED CASH OFFER BY STRAND PARTNERS ON BEHALF OF COATS
     HOLDINGS PLC (FORMERLY AVENUE ACQUISITION PLC) FOR COATS PLC ("COATS")

                                  Offer Update

On 28 May, 2003, Avenue Acquisition plc changed its name to Coats Holdings plc
("Coats Holdings").

Coats Share Offer

As at 3.00 p.m. yesterday, being the final closing date of the Coats Share
Offer, Coats Holdings had received valid acceptances of the Coats Share Offer in
respect of 429,293,848 Coats Shares, representing approximately 60.58 per cent.
of Coats' current issued ordinary share capital, of which elections for the
Convertible Stock Alternative had been made in respect of 101,106,044 Coats
Shares, representing approximately 14.27 per cent. of Coats' current issued
ordinary share capital.

Prior to the commencement of the Offer Period, Coats Holdings held 179,082,728
Coats Shares, representing approximately 25.27 per cent. of Coats' current
issued ordinary share capital and, during the Offer Period, it purchased a
further 89,181,480 Coats Shares (in aggregate), representing approximately 12.59
per cent. of Coats' current issued ordinary share capital.

Prior to the commencement of the Offer Period persons acting in concert with
Coats Holdings (the "Concert Parties") held 86,016,424 Coats Shares,
representing approximately 12.14 per cent. of Coats' current issued ordinary
share capital. The Concert Parties have validly accepted the Coats Share Offer
in respect of all such Coats Shares.

Including valid acceptances of the Coats Share Offer received by Coats Holdings,
Coats Holdings therefore currently holds 697,558,056 Coats Shares, representing
approximately 98.60 per cent. of Coats' current issued ordinary share capital.

The Coats Share Offer, including the Convertible Stock Alternative, is now
closed.

Coats Bond Offer

As at 3.00 p.m. yesterday, being the final closing date of the Coats Bond Offer,
Coats Holdings had received valid acceptances of the Coats Bond Offer in respect
of £144,000 nominal of Coats Senior Convertible Bonds.

Prior to the commencement of the Offer Period, Coats Holdings and the Concert
Parties held nil Coats Senior Convertible Bonds and have not purchased any Coats
Senior Convertible Bonds during the Offer Period.

The Coats Bond Offer is now closed.

Coats Holdings posted formal notices under section 429 of the Companies Act to
Coats Shareholders on 9 May, 2003. Accordingly, Coats Shares that have not been
acquired by Coats Holdings under the terms of the Coats Share Offer will be
compulsorily acquired on 20 June, 2003.

In this announcement "Offer Document" means the document setting out the full
terms of the Offers dated 7 April, 2003. Unless the context otherwise requires,
defined terms used in this announcement shall have the same meanings given to
them in the Offer Document.


Richard Russell
Company Secretary
Guinness Peat Group plc


Enquiries

UK                         Mark Butcher             Tel: [phone]
Australasia                Dr Gary Weiss, Director  Tel: [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange