Offer Update

Hill & Smith Hldgs PLC
18 October 2000


Hill & Smith Holdings PLC

Hill & Smith Holdings PLC - Recommended Offer for Ash  &
Lacy plc

On 11 October, Hill & Smith Holdings PLC ('Hill & Smith')
announced  the  posting of its formal  recommended  offer
(the 'Offer) for the entire issued and to be issued share
capital of Ash & Lacy plc ('Ash & Lacy').

Hill  &  Smith  is pleased to announce that it  yesterday
acquired  by way of market purchases 3,644,862 shares  in
Ash & Lacy, representing approximately 9.98 per cent.  of
Ash & Lacy's existing issued share capital.

Hill  &  Smith,  together with persons with  whom  it  is
acting  in concert, now owns or controls 4,014,112 shares
in Ash & Lacy, representing approximately 10.99 per cent.
of Ash & Lacy's existing issued share capital.

Save  for the above, neither Hill & Smith nor any of  its
subsidiaries  nor, so far as Hill & Smith is  aware,  any
party  acting in concert with Hill & Smith owns, controls
or has options to acquire any Ash & Lacy shares.

Together with irrevocables and a letter of intent, Hill &
Smith  is therefore interested in 22,425,978 Ash  &  Lacy
shares, representing approximately 61.39 per cent. of Ash
& Lacy's existing issued share capital.

In  addition,  as  disclosed in the Offer  document,  the
trustees  of  the  Ash & Lacy plc 1999  Employee  Benefit
Trust  have confirmed that it intends to accept the Offer
in respect of its holding of 1,745,592 Ash & Lacy Shares,
representing approximately 4.78 per cent. of Ash & Lacy's
existing issued share capital.

The first closing date is 3.00pm on 1 November 2000.



PRESS ENQUIRIES

For further information contact:

For Hill & Smith:

Hill & Smith                  01902 357910
David Winterbottom (Chairman)
David Grove (Chief Executive)

Old Mutual Securities              0121 710 4501
Kevin Wilson
Richard Welton

Rawlings PR                        01756 770376
John Rawlings
Catriona Valentine


The  directors of Hill & Smith accept responsibility  for
the  information contained in this announcement  and,  to
the  best of their knowledge and belief (having taken all
reasonable  care to ensure that such is  the  case),  the
information   contained  in  this  announcement   is   in
accordance  with  the facts and does  not  omit  anything
likely to affect the import of such information.

Old  Mutual Securities, which is regulated in the  United
Kingdom  by The Securities and Futures Authority Limited,
is acting exclusively for Hill & Smith and no one else in
connection with the Offer and will not be responsible  to
anyone  other  than  Hill  &  Smith  for  providing   the
protections   afforded  to  customers   of   Old   Mutual
Securities or for giving advice in relation to the Offer.

The  Offer is not being made, directly or indirectly,  in
or into the United States, Canada, Australia or Japan.