Disposal

Anglo-Welsh Group PLC
4 December 2000


    Anglo-Welsh Group plc ('Anglo Welsh' or the 'Company')
   Sale of certain canal boat business assets to Aquatravel
                    Limited ('Aquatravel')
                               
The Board of Anglo Welsh announces that it has today sold
certain  business assets of its canal boat business for a
consideration of £800,000 in cash to Aquatravel. The
consideration is subject to adjustment in respect of
prepayments and holiday deposits. At the same time, Anglo
Welsh has entered into a management agreement with Aquatravel
which will transfer all responsibility for operating its canal
boat fleet.

The business assets sold, which had a net book value of
£709,000 as at 31 October 2000, comprise the stocks,
equipment, certain leaseholds and operational contracts, ten
day boats and two day cruisers and intellectual property
relating to the holiday management business including the
right to the trading name 'Anglo Welsh' and the domain name
'anglowelsh.co.uk'. Anglo Welsh will retain ownership of its
remaining 113 narrow boats. Under the terms of a five year
management agreement, Aquatravel will manage the hiring out of
the boats on behalf of Anglo Welsh. Aquatravel will receive a
management fee equal to a specified percentage of the hire
fees received by Anglo Welsh from holidaymakers for each boat.
These percentages range from 90 per cent. in year 1 to 75 per
cent. in year 5. The business assets were sold free of all
book and other debts other than in relation to any operational
contracts which are being assumed by the purchaser.

No accounts have historically been drawn up for the canal boat
hire business although it comprised the principal source of
sales revenue for the Company. In the 6 months to 30 April
2000 the Anglo Welsh Group as a whole made a loss on ordinary
activities before taxation of £1,530,000.

David Medlock was until 28 November 2000 a Director of Anglo
Welsh. Aquatravel is a newly formed company of which Mr
Medlock is also a director and a substantial shareholder. As
Mr Medlock is a former Director of Anglo Welsh and as he is
also a shareholder in Aquatravel Limited, he is an associate
of that company for the purpose of the AIM Rules and the
disposal is a related party transaction for the purpose of
those Rules.  Anglo Welsh has agreed to repay £150,000 out of
a  £500,000 secured loan made available to the Company by Mr.
Medlock out of the proceeds from the sale.  Mr. Medlock will
also be paid accrued interest at a rate of 8% per annum on the
loan.  Anglo Welsh, having consulted with Strand Partners
Limited, the Company's financial advisers, confirm that in the
Board's opinion, the terms of the disposal and the part
repayment of the loan to Mr. Medlock are fair and reasonable,
so far as the shareholders of Anglo Welsh are concerned.

The cash proceeds arising from the disposal will be used
partly to repay shareholder indebtedness with the balance
being applied to reduce bank indebtedness.

Enquiries:

Stephen Thomson
Anglo-Welsh Group plc              [phone]

Tony Rawlinson
Strand Partners Limited            [phone]