Merging of Subsidiaries

Yule Catto & Co PLC
9 January 2002


                   YULE CATTO & COMPANY PLC ('Yule Catto')

            Subsidiaries merged to create global polymers business

Yule Catto is an international producer of speciality chemicals, which are
supplied to global customers, ranging from manufacturers of medical gloves,
paint and adhesives to the pharmaceuticals and cosmetics industries.

Following the buy-outs of its previous partners over the past two years, Yule
Catto is merging its Harlow Chemical Company Co. Ltd. ('Harco') and Revertex
Belgium SA businesses with its Synthomer subsidiary to create one of the
world's leading manufacturers of water-based polymers.

The enlarged Synthomer will become Yule Catto's largest business unit, with
annual turnover in excess of £200 million, sales to more than 40 countries
world-wide, and total annual production of 400,000 wet tonnes from nine
manufacturing locations, providing an infrastructure to meet customers' local,
regional and global requirements.

Together with the two other Polymer Division companies - in South Africa and
Malaysia - Synthomer enjoys market leadership in many areas of SBRs and
nitrile latex, water-based dispersions and polyvinyl alcohol, providing a
unique range of polymers to the paint, adhesive, construction, textile,
dipping and PVC industries.

Within the UK, Synthomer brings together four manufacturing units, at Harlow
in Essex, at Ossett and Batley in West Yorkshire and at Stallingborough, where
the new company will combine the management of two existing manufacturing
facilities - Harco and Synthomer - located adjacent to one another on the
Humberside site. Around 500 of Synthomer's 900 employees world-wide are based
in the UK.

Removal of the joint venture partners has freed Yule Catto to invest in a
substantial expansion of the Synthomer business and its product portfolio.
Among a series of major new initiatives is the commissioning later this month
of a new £20 million speciality latex manufacturing plant in Malaysia, which
has been built to meet fast growing global demand for synthetic latex.

Elsewhere, new capacity is being installed at the Stallingborough and Batley
facilities in the UK, a new dispersion plant is being constructed in Belgium,
which is scheduled to open in early 2003, and manufacturing capacity is being
expanded in Saudi Arabia.  A state of the art pilot plant is also under
construction at Harlow to support polyvinyl alcohol sales to the PVC industry.

Besides Polymers, Yule Catto comprises two other divisons. These are its
Pharma and Fine Chemicals Division - whose products range from drug compounds
to flavours and fragrances - and its Performance Chemicals Divison - whose
product range encompasses ultramarine pigments, timber and water treatment
products, and speciality chemicals for the cosmetic, photographic and UV
reactive lens markets.

Alex Walker, Chief Executive of Yule Catto, comments:

'This establishment of a clearly identifiable brand for our polymers business
will demonstrate to our major customers that we are a truly global company,
with an unrivalled product range and a commitment to the highest standards of
technological development, product innovation and service provision.'

                                                                9 January 2002

ENQUIRIES:

YULE CATTO
Alex Walker, Chief Executive                                  Tel: [phone]

COLLEGE HILL                                                 Tel: [phone]
Gareth David                                email: [e-mail]
Lisa Pearson                                email: [e-mail]