Memo. of Understanding Signed

Tate & Lyle PLC
16 October 2000


Tate & Lyle PLC - Memorandum of Understanding Signed re Sale of The Western
Sugar Company

Tate & Lyle PLC ('Tate & Lyle') announces that its wholly-owned subsidiary,
Tate & Lyle North American Sugars Inc. ('TLNAS'), has signed a non-binding
Memorandum of Understanding ('MOU') with the Rocky Mountain Sugar Growers
Co-operative ('RMSGC') for the acquisition by RMSGC from TLNAS of all the
outstanding stock of The Western Sugar Company ('Western'), a wholly-owned
subsidiary of TLNAS.  

Following the signing of the MOU, TLNAS and RMSGC will begin the process of
negotiating and preparing an appropriate purchase agreement and related
agreements ('Definitive Agreements').  

The Definitive Agreements are expected to be subject to, inter alia, closing
conditions including regulatory approval, RMSGC obtaining satisfactory
commitments of financing, the outcome of due diligence inquiries by RMSGC,
approval of sufficient members of RMSGC and approval of the Board of Tate &
Lyle.  Accordingly, there is no certainty that the MOU will lead to a disposal
of Western.  It is also likely that any disposal of Western would be at a
substantial discount to net asset value.

Enquiries:

Charles King     020-7626-6525
Chris Fox        020-7626-6525 (Press)