Acquisition

M.P. EVANS GROUP PLC ("MPE" OR "THE GROUP")


                  Investment in new Indonesian oil-palm project



Further  to the announcement made at the annual general meeting on 13  June
2006  in  relation to the signing of a memorandum of understanding with  an
Indonesian partner, the board is pleased to announce that sale-and-purchase
and  joint-venture  agreements have now been  signed  in  relation  to  the
development  of a 14,000-hectare piece of land in Indonesia.  The  land  is
located  approximately  60 miles to the north west  of  Samarinda  in  East
Kalimantan.  It  comprises heavily degraded forest  and  is  deemed  highly
suitable for oil-palm development in terms of soil conditions, terrain  and
climate.

As  part of the agreement, a smallholders' scheme, comprising a maximum  of
6,000  hectares, will be established in the vicinity of the  14,000-hectare
area  and  this  will be managed by the Group for which it will  receive  a
management fee. In time, a palm-oil mill will be constructed to process the
fruit from both the Group's project and the smallholders' area.

The  investment in the project will be held through an Indonesian  company.
P.T.  Prima Mitrajaya Mandiri ("PMM"), which will be owned as to  92.5%  by
the  Group  and  7.5%  by the joint-venture partner,  Mr  Halim  Jawan,  an
Indonesian  businessman  who has close links with the  Samarinda  area.  Mr
Halim  will be responsible for securing the Hak Guna Usaha ("HGU") (a right
to  use  the land akin to a Government lease). The cost to PMM of acquiring
the  HGU  for  a 30 year term with rights of extension will be  US$225  per
hectare, equivalent to a total of US$3.15 million in respect of the  14,000
hectares.  This  will  be  payable to Mr Halim in  stages  further  to  the
satisfaction of various conditions, which will culminate in the procurement
of the HGU.

It is hoped that work on the ground, including the establishment of an oil-
palm  nursery,  will  start within the next three to  four  months.  It  is
intended  to  clear and plant the area as quickly as is   practicable  -  a
period which is currently estimated at five to six years.

It  is  anticipated that the total funding required for the acquisition  of
the  HGU  and the subsequent oil palm development will be in the region  of
US$55  -  US$60  million. It is intended that this will be  provided  by  a
combination  of funds from within MPE, comprising principally the  proceeds
arising from the sale of the Malaysian estates, and external loans.


MPE chairman, Richard Robinow, commented as follows:-

`'Following the commencement last year of the 12,000-hectare Bangka Island
project,  the  new,  14,000-hectare, East  Kalimantan  project  represents
another exciting step in the implementation of the Group's stated strategy
of  selling its high-value, Malaysian estates and reinvesting the proceeds
both  in  substantially larger oil-palm projects in Indonesia and  in  the
beef-cattle  sector of Australia. Prospects for Indonesian  palm  oil  and
Australian beef cattle continue to look favourable for both the short  and
longer term."


By order of the board
J F Elliott
Company secretary
10 July 2006




Enquiries:

M.P. Evans Group PLC       Telephone:   [phone]
Peter Hadsley-Chaplin,
joint managing director


Hudson Sandler             Telephone:  [phone]
Andrew Hayes
James White