European Fund Launch

3i GROUP PLC
8 September 1999


                     3i LAUNCHES FURTHER EUROPEAN FUND

3i Group plc, Europe's leading venture capital company, today announces the
establishment of a new European mid-market private equity fund, Eurofund III.
The fund will have an expected size of approximately Euro 2 billion of which
Euro 1.8 billion has already been committed.

Eurofund III will initially be focused on management buy-out and growth capital
investments in continental Europe, and will subsequently be extended to cover UK
buy-outs and buy-ins.  The fund will invest mainly in transactions with a total
value of between Euro 10 million and Euro 350 million.

In line with earlier funds half of Eurofund III is being commmitted by 3i itself
and the remainder by a relatively small number of global investors drawn from
the UK, continental Europe, North America and Asia.

With the addition of Eurofund III, 3i now manages approximately Euro 3 billion
(£2 billion) of third party funds for investment principally in unquoted
companies.  These are co-invested alongside the Group's own capital typically on
a 50:50 basis.

For further information contact:

Paul Waller, 3i               0171 975 3216
Patrick Cook, 3i              0171 975 3216