Open Letter to Young & Co

Guinness Peat Group PLC
18 June 2001


                 GUINNESS PEAT GROUP plc
                            
   LETTER TO THE CHAIRMAN OF YOUNG & CO'S BREWERY PLC
                            
Blake Nixon, UK Executive Director of Guinness Peat Group
plc  ('GPG')  has written to Mr John Young,  Chairman  of
Young  &  Co's  Brewery  PLC  ('Young'),  proposing   the
privatisation  of  the  non-family  shareholdings.    GPG
currently  holds  25.2%  of Young's  'A'  ordinary  share
capital.

The full text of the letter and the associated resolution
proposed for the forthcoming Young AGM are attached.


TEXT  OF  LETTER FROM BLAKE NIXON TO JOHN YOUNG, CHAIRMAN
OF YOUNG & CO'S BREWERY PLC.

Dear Mr Young

       'We cannot continue to operate the company
     and act as if Queen Victoria was on the throne'
                                        Morrells Brewery*
                                                July 1998
                                                         
*Morrells  operated  as a family owned  brewery  and  pub
estate  in  Oxford  since 1570 and is now  extinct  as  a
consequence of value erosion in the 1990's.

Over the past four years Guinness Peat Group ('GPG')  and
Young  &  Co.'s  Brewery ('Young') have been  engaged  in
debate on three principal issues:

(1)  Young's inadequate return on capital;
(2)  the  Board's  lack   of  public  accountability  for
     performance; and
(3)  the   Board's    failure   to    acknowledge     any
     responsibility for the delivery of shareholder value 
     in a timely manner.

It  is  generally accepted that Young's inadequate return
on  capital  is a consequence of the Brewery's  excessive
production costs per barrel. This means it operates at  a
loss  and  that the Pub Estate fails to obtain the  usual
profit  margin on its beer purchases.  GPG has previously
proposed  a  number of strategic initiatives  to  address
this  inadequate return, principally the purchase of,  or
joint  venture with, another brewery, or the  acquisition
of  another 70 or 80 pubs.  Either of these actions would
increase  the  barrelage through the Brewery sufficiently
to  improve  its economics to an acceptable  level.   Not
only  has the Board failed to make any significant  moves
in  this  regard, it has not even condescended  to  state
clearly  a  credible strategy to rectify  the  return  on
brewing assets.

The  voting  structure  of Young's share  capital,  which
precludes   a  majority  from  removing  directors,   has
shielded  the  Board from public accountability  for  the
Group's chronic underperformance.

The  Board  has  repeatedly  failed  to  acknowledge  any
responsibility for the delivery of shareholder value in a
timely  manner.  Indeed, it has given no indication  over
the  past  five  years that it is in the least  concerned
that   Young's  shares  have  consistently  sold   at   a
substantial  discount  to  the undeniable  value  of  the
Group's assets.  GPG's proposals at the last three  AGM's
for a simplification of the Company's share capital, were
put   forward   with  the  aim  of  the  Board   becoming
accountable  to  all  shareholders and,  as  importantly,
reversing   this   serious  under   valuation.    Despite
overwhelming  support for these proposals from  the  non-
family  shareholders, the Board has refused to  take  any
action in this direction.

This   enforced   inaction  by  the  Board   places   the
independent  directors  in a rather  invidious  position.
Young's performance can only be remedied by either taking
vigourous  steps to correct the economics of its  brewing
operations or, in extremis, closing the Brewery.   It  is
plain  the  Young  family  is  impeding  the  Board  from
pursuing  either of these courses, whilst  hiding  behind
the  great  heritage of the Company as  their  rationale.
The   propriety  of  this  can  only  be   described   as
questionable.   Whilst having the power  to  appoint  the
entire Board, the 'B' shareholders only own 33.7% of  the
share capital and therefore are exposed to only 33.7%  of
the  estimated  £4m-£5m underperformance  caused  by  the
Brewery's poor economics.  We fail to see how, when  they
are  prevented  from  adopting  a  timely  and  effective
strategy   to  eliminate  the  problem,  the  independent
directors  feel they can adequately represent the  public
shareholders,  who  are  forced to  bear  66.3%  of  this
shortfall.

Against this background, the clearest acceptable solution
to the current predicament is a privatisation of the non-
family  shareholdings.  GPG therefore proposes  that  the
Board develop a scheme of arrangement under which the 'B'
shares  (other  than  those held by  Young  family  Board
members and the Ram Brewery Trust) and the 'A' shares are
cancelled with holders repaid £10 per share, and the non-
voting shares are cancelled with the holders repaid £7.50
per  share.   These prices are the minimum at  which  GPG
believes  the  shares  would trade if  the  Brewery  were
managed   competently  and,  furthermore,   represent   a
significant  premium  to share prices  in  recent  times.
Securitisation of the outstanding Young's pub  portfolio,
a  now well-established method of financing, would enable
the  Group to raise sufficient finance for such a scheme,
including the redemption of debentures and any other debt
finance.   The  scheme would allow the Ram Brewery  Trust
and those of the Young's family who are Board members  to
continue  to operate the Brewery as they saw fit  without
the  majority  shareholders  being  forced  to  fund  its
losses.

We believe our scheme represents an attractive resolution
of  the present totally unacceptable state of affairs. As
such, I strongly commend the scheme to all shareholders.

Yours faithfully,

Blake Nixon
UK EXECUTIVE DIRECTOR

WORDING  OF  RESOLUTION PROPOSED FOR  THE  YOUNG  &  CO'S
BREWERY PLC ANNUAL GENERAL MEETING

Young & Co's Brewery PLC (the 'Company')

                   Ordinary Resolution

THAT

     this meeting requests and recommends that:

     the  Board of Directors formulate proposals for  the
     Company  to be transferred to the sole ownership  of
     the  Young family and connected persons by means  of
     cancelling and extinguishing:

          (a)  all the issued 'A' ordinary shares of  50p 
               each (the 'A Shares') and repaying to  the 
               holders thereof the sum of £10 per A Share;
          
          (b)  all the issued 'B' ordinary shares of  50p 
               each  held  by  persons   other  that  the 
               trustees of  the  Ram  Brewery  Trust  and  
               those directors of  the  Company  who  are 
               members of the Young family (the 'Relevant 
               B Shares') and  repaying  to  the  holders 
               thereof the sum  of  £10  per  relevant  B 
               Share; and

          (c)  all the issued non-voting ordinary  shares 
               of 50p each  (the 'Non-Voting Shares') and 
               repaying to the holders thereof the sum of 
               £7.50 per Non-Voting Share

     by  means  of a scheme of arrangement under  section
     425  of  the Companies Act 1985 of the Company  (the
     'Scheme')  and  that the Scheme and the  resolutions
     required  to give effect to the Scheme be  submitted
     to  the  requisite class meetings, general  meetings
     and court meetings, such meetings to be convened  as
     soon  as  practicable following the passing of  this
     Resolution.
     



Enquiries:

Guinness  Peat  Group  plc                 020 7236 0336
Blake Nixon, UK Executive Director

Square  Mile  BSMG  Worldwide              020 7601 1000
Kevin Smith/Becky Jewers