Share Placing to Raise £580,000

Tandem Group PLC
20 January 2000
                                       


                         Placing to raise £580,000
                                       
Tandem  Group  PLC  ('Tandem'  or 'Company') has  today  conditionally  raised
£550,000  (net  of expenses) by the placing of 8,055,555 new  ordinary  shares
(8.6  per  cent. of the current issued share capital) at a price of  7.2p  per
share, a 10 per cent discount to the middle market price at the time that  the
placing was arranged..  The new ordinary shares have been conditionally placed
with  three  institutional investors by Peel, Hunt &  Company  Limited  ('Peel
Hunt').  As this placing does not fall within the existing authorities of  the
board  of  Tandem, a circular is being posted to shareholders to seek approval
for an increase in share capital and a waiver of pre-emption rights in respect
of the Placing Shares.

In  its  Interim Statement for the 26 weeks to 1 August 1999 dated 2 September
1999,  Tandem  reported that borrowings had significantly  reduced  but  still
remained high and that in addition to the interest charge, the overdraft level
incurred  an  overhead cost which was disproportionate  to  the  size  of  the
Group's  business. Tandem's Board continues to consider possible opportunities
to address these issues and restore shareholder value.

Bank  facilities have just been renewed for a period up to 31 July  2000.   As
part  of the terms of the renewal, two members of the banking consortium  have
agreed  to  write  off  in aggregate £839,039 of principal  owed  to  them  in
consideration for the early repayment of £548,260.

Tandem considered other methods of raising the necessary funds, including  the
offer  of  new  ordinary  shares by way of open  offer  or  rights  issue  but
considered  that  in the circumstances taking account of time constraints  and
transaction  costs  the proposed placing is considered  the  most  appropriate
method.

An  EGM  to  approve the placing has been convened for 10.00 am on  Monday  21
February 2000 at 1 Royal Place, Nottingham NG1 6FZ.

Application  will be made for the new ordinary shares to be  admitted  to  the
Official  List, with dealings expected to commence on 22 February  2000.   The
Placing  Shares will, when allotted, rank pari passu in all respects with  the
existing issued Ordinary Shares of Tandem.  The placing is conditional,  inter
alia, on admission of the new ordinary shares to the Official List by 9.00  am
on 22 February 2000 (or such later date agreed by Peel Hunt and the Company).

For further information contact:

Mervyn Keene (Finance Director, Tandem Group plc) 01733 211399

Adam Hart (Peel, Hunt & Company Limited)          0171 418 8900