Holding in Company

Colefax Group PLC
15 August 2000


LETTER TO: COLEFAX GROUP PLC
11 August 2000

COMPANIES ACT 1985 ss. 198-202
DISCLOSURE OF INTERESTS IN SHARES

Pursuant to the above provisions we hereby notify you on behalf of our client(s)
of the following change of interest in shares of your Company on behalf of
certain of our discretionary management clients who are invested in an
unauthorised unit trust of which we are the investment manager.

As at 10th August, 2000, the interest is as follows:

Name of Trust:          BNY Trust Company Ltd. as Trustee of the MIT - 
                        Mercury Alpha Specialist Situations Investment Fund

Class of Shares:        10p Ordinary Shares

Sale:                   50,000

Holding:                2,455,500

Level of Interest:      9.99%

There are currently in excess of one hundred and sixty three beneficial holders
in the Trust.  These holders do not have voting discretion over the shares held
in the Trust.

LETTER FROM: MERCURY ASSET MANAGEMENT