Expansion of BPI Quotations

Macfarlane Group PLC 9 November 2000 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN MACFARLANE GROUP PLC ('MACFARLANE') CASH OFFER FOR BRITISH POLYTHENE INDUSTRIES PLC ('BPI') Expansion of previous BPI quotations In the document which Macfarlane sent to the shareholders of BPI on 2 November 2000, Macfarlane reproduced the text of various statements made by Cameron McLatchie, chairman and chief executive of BPI. Macfarlane has been asked and is pleased to set out in more detail the context of two of these quotations. Both quotations appear on page 2 of Macfarlane's 2 November document. CLAIM First, Macfarlane noted that in BPI's annual report and accounts for the year ended 31 December 1998 Cameron McLatchie stated: 'We have already taken many of the steps necessary to improve profitability and support our ongoing businesses .. We are confident that we are moving in the right direction.' The full paragraph from which this is extracted reads as follows: 'We have already taken many of the steps necessary to improve profitability and support our ongoing businesses, although eliminating the loss making activities is taking longer than anticipated. We will not shirk from any additional action which may be required. Whilst market conditions continue to remain difficult, we do have the benefit of an extremely sound balance sheet and continuing strong cash flow, which will support our determination to restore our past record of growth in shareholder value. We are confident that we are moving in the right direction.' CLAIM Secondly, Macfarlane quoted Cameron McLatchie from the BPI interim results for the six months ended 30 June 1999 as saying: '. we are convinced that the hiatus in our earnings growth will be remedied by the positive changes we have made over the last few years .' The full sentence from which this is extracted reads as follows: 'We are committed to maintaining our final dividend, and we are convinced that the hiatus in our earnings growth will be remedied by the positive changes we have made over the last few years, and the understanding that we will continue to take whatever steps are necessary to secure a strong future for our Group.' FACT The board of Macfarlane continues to believe that BPI shareholders should question whether the board of BPI can accurately predict BPI's future prospects and deliver increased profits. Macfarlane's document clearly demonstrates that many of the claims made by BPI have not been delivered and profits have continued to fall. Profit before tax for the half year to 30 June 2000 fell to £4.8 million from £11.1 million in the same period in the prior year - a decrease of 57%. BPI's profit before tax First half Full year 1996 14.3 28.0 1997 11.1 23.2 1998 11.3 21.6 1999 11.1 19.2 2000 4.8 ? 2001 ? ? 2002 ? ? Macfarlane urges BPI shareholders to accept its offer of 250 pence cash now. Words and expressions defined in the Offer Document issued on behalf of Macfarlane on 17 October 2000, have the same meanings in this announcement, unless otherwise indicated. Enquiries: Macfarlane Group PLC Iain Duffin 0141 333 9666 Noble Grossart Limited Sir Angus Grossart 0131 226 7011 Todd Nugent HSBC John Hannaford 020 7336 9000 Beattie Media Gordon Beattie 01698 787878 Bell Pottinger Kate Power 020 7353 920 Copies of the Offer Document, Form of Acceptance and the document sent to BPI shareholders on 2 November 2000 are available free of charge from Lloyds TSB Registrars, Antholin House, 71 Queen Street, London EC4N 1SL (telephone 0870 600 2027). The directors of Macfarlane (whose names are set out in paragraph 2 of Part 7 of the Offer Document) accept responsibility for the information contained in this announcement save that the only responsibility accepted by them in respect of the information contained in this announcement relating to BPI, the BPI group and the directors of BPI, which has been compiled from publicly available sources, has been to ensure that such information has been correctly and fairly reproduced and presented. Save as aforesaid, and to the best of the knowledge and belief of the directors of Macfarlane (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information. Noble Grossart Limited, which is regulated in the UK by The Securities and Futures Authority Limited, is acting exclusively for Macfarlane and no one else in relation to the Offer and will not be responsible to any person other than Macfarlane for providing the protections afforded to customers of Noble Grossart Limited or for giving advice in relation to the Offer. The contents of this announcement have been approved by Noble Grossart Limited for the purpose only of Section 57 of the Financial Services Act 1986.
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