Merger Update

Millfield Group PLC
31 August 2004

Date:                            31 August 2004

On behalf of:                 Millfield Group plc

For immediate release



Not for release, publication or distribution in or into the United States,
Canada, Japan or Australia.



RECOMMENDED MERGER OFFER ON BEHALF OF MILLFIELD GROUP PLC ("MILLFIELD") FOR
INTER-ALLIANCE GROUP PLC ("INTER-ALLIANCE")



Millfield announces that at 3.00 pm on 27 August 2004, the first closing date of
the Offer, valid acceptances had been received under the Offer in respect of a
total of 657,858,884 Inter-Alliance Shares, representing approximately 72.45% of
Inter-Alliance's issued share capital. The Offer will remain open until further
notice.



The acceptances received include acceptances in respect of 312,054,366
Inter-Alliance Shares, representing approximately 34.4% of Inter-Alliance's
issued share capital, pursuant to irrevocable undertakings and letters of intent
to accept, or procure the acceptance of, the Offer, given by certain
Inter-Alliance Shareholders and the Inter-Alliance Directors.



Immediately prior to the Offer Period, neither Millfield nor any person acting
in concert with Millfield for the purposes of the Offer, held any Inter-Alliance
Shares (or rights over such shares). Since that date, neither Millfield nor any
person acting in concert with Millfield has acquired or agreed to acquire any
Inter-Alliance Shares (or rights over such shares) other than pursuant to the
Offer.



Enquiries to:


Emma Kane/Sanna Lehtinen                 Tel:    [phone]

Redleaf Communications                   Mob:  [phone]



Terms defined in the Offer Document dated 6 August 2004, have the same meaning
in this press release unless the context otherwise requires.



To the best of their knowledge and belief of the Directors of Millfield Group
plc (having taken all reasonable care to ensure that such is the case), the
information contained in this document is in accordance with the facts and does
not omit anything likely to affect the import of such information. The Directors
of Millfield Group plc accept responsibility accordingly.



Collins Stewart Limited, which is regulated in the United Kingdom by The
Financial Services Authority, is acting for Millfield and no-one else in
connection with the Offer and will not be responsible to anyone other than
Millfield for providing the protections afforded to its customers or for
providing advice in respect of any matters referred to in this press release.


                      This information is provided by RNS
            The company news service from the London Stock Exchange