Rationalisation Programme

St. Ives PLC
1 February 2002


                   St Ives announces further rationalisation


As stated in our announcement of 7th January, we continue to keep the Group's
cost base under review in the light of the likely future level of activity and
have concluded that further rationalisation of the Group's capacity in the UK is
required. Customers continue to source non-time-sensitive work from continental
Europe; competitors strive to fill underutilised capacity, some of it recently
installed, and falling advertising expenditure has led to a number of magazine
title closures, reduced pagination and decreased demand for many forms of
promotional print.

Accordingly St Ives Web Division proposes, following the completion of the
appropriate consultation period, to cease all production at its factory at
Gillingham in Kent, which chiefly supplies the magazine market. Regrettably this
will result in approximately 210 jobs being made redundant. Our customers'
requirements will in future be fulfilled from our other factories in the UK. The
total cost of closure to the Group (including lease termination costs and plant
write-offs), which will be fully provided in the current financial year, is
estimated to be approximately £5.7 million.



Enquiries:

St Ives plc: 020 7928 8844

Brian Edwards, Managing Director

Ray Morley, Finance Director



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