Acquisition of Reichhold Inc's 50% Shareholdings

Yule Catto & Co PLC
30 November 1999

                         Yule Catto & Co plc                             

Purchase of joint venture partner's 50% shareholdings in Synthomer Limited and
Synthomer GmbH.


Yule Catto & Co plc ('Yule Catto') and its wholly owned subsidiary, Yule Catto
Nederland BV, have purchased the 50% equity interests in Synthomer Limited and
Synthomer GmbH respectively held by Yule Catto's joint venture partner,
Reichhold Inc. ('Reichhold') for a total cash consideration of $95 million. 
The purchase is being financed by the use of existing credit facilities. 

Synthomer Limited and Synthomer GmbH ('Synthomer') are leading producers of
synthetic latex polymers and compounded latices with major manufacturing
facilities located at Stallingborough near Grimsby and Langelsheim, Germany. 
Synthomer has a strong and growing presence in speciality areas and in
particular is benefiting from the increasing Far Eastern demand for dipping
latex used to manufacture synthetic rubber protective gloves consumed by the
health sector and the computer industry.  Synthomer also sells to paper
manufacturers and is the second largest supplier of latex and compounds to the
European floor covering industry. 

The combined sales of Synthomer Limited and Synthomer GmbH were £99,484,000
for the year ended 31 December 1998 and profit before tax for the same period
was £14,604,000.  The net assets of both companies at 31 December 1998
totalled £18,227,000 and aggregate borrowings were £4,385,00 at that date. 

Yule Catto already held 50% equity interests in Synthomer Limited and
Synthomer GmbH and both companies were managed under the terms of joint
venture agreements with Reichhold. 

The acquisition brings to an end a joint venture arrangement involving
Synthomer Limited with which Yule Catto companies have been involved for
nearly 40 years.  Yule Catto acquired its initial 50% holding in Synthomer
GmbH in 1993. 

The acquisition has the important benefit of freeing Yule Catto to exploit
Synthomer's leading edge technology on a wider geographic basis.  In
particular the expansion of Synthomer's manufacturing base into Malaysia is
being assessed, supported by Yule Catto's existing operations in that country.
 For a two year period Synthomer and Reichhold will be subject to a
restriction preventing the establishment of manufacturing facilities in the
Americas and Europe respectively. 

The acquisition will not lead to any changes in the management or work force
of Synthomer.  The company will continue to enjoy the full benefit of
technology developed during the period of the joint venture relationship with
Reichhold.    

Commenting on the acquisition Alex Walker, Chief Executive of Yule Catto 
said: 
'We are delighted to have the opportunity to bring the full benefit of these
excellent companies into our core Polymer Chemicals Division.  We have worked
closely with the Synthomer management, who are based in Harlow, for many years
and shall now exploit the significant opportunities presented by the growing
markets in which the business operates, particularly in South East Asia.  

The acquisition which will enhance earnings in the first full year of
ownership represents an important step in the strategy to focus upon our well
developed competences in speciality chemicals.  We anticipate that this trend
will gather momentum as we review the continuing ownership of businesses
within our portfolio'. 



For further information contact: 
Alex Walker - Chief Executive
Tel: [phone]