Termination of Bid Discussions and Trading Update

SIG PLC
18 January 2000

                                                               
                        TERMINATION OF BID DISCUSSIONS
                              AND TRADING UPDATE
   
                            
Termination of Bid Discussions
On 20th December 1999 the Board of SIG plc announced that it had received an
approach which may or may not have lead to an offer for the company.

Following the approach, the Board, supported by its advisors, considered that
the indicative offer undervalued the Group and its prospects and discussions
have therefore been terminated.

Trading Update
The Group has performed well in the year to 31 December 1999.  Despite trading
conditions having remained challenging, the Group recorded a particularly
strong performance in the second half.  Good like for like sales growth has
been achieved and market share gained.  Given this performance, results will
be at the upper end of market expectations.

Strong profits growth in the UK and Europe, with a significant improvement in
profitability in Germany, have been the principal contributors to the overall
performance.

All our businesses have increased sales and profits, with the exception of our
small US business, where market demand in our oil related industrial market
has fallen sharply.

The Group made five small bolt-on acquisitions during the second half of the
year, which will contribute to further growth in future years.

The robust trading performance has resulted in a further strengthening of the
balance sheet, with good cash flow and increased interest cover.

Enquiries

SIG plc
Barrie Cottingham
Bill Forrester
Frank Prust                   0114 285 6300

HSBC
Rupert Faure Walker
Richard Taylor                0171 336 9000

Cazenove & Co
Arthur Drysdale               0171 588 2828

Finsbury
Rupert Younger                0171 251 3801