Repayment of Prefence Shares

600 Group PLC
13 July 2001

                                                                  13 July 2001



                              The 600 Group PLC

Cancellation and Repayment of Preference Share Capital

The 600 Group PLC (the 'Company') announces that it proposes to cancel all of
the 4.5% cumulative preference shares and 6.5% second cumulative preference
shares of £1 each (together the 'Preference Shares'), whether issued or
unissued, by means of a reduction of share capital and to repay all of the
issued Preference Shares in accordance with the Articles of Association (the '
Articles'). A circular to shareholders is being posted today providing further
information on this proposal and setting out the Board's reasons for
recommending that shareholders vote in favour of the special resolutions to
approve the proposal at the Extraordinary General Meeting convened at 10am on
8 August 2001.

Under the Articles, ordinary shareholders and holders of Preference Shares are
entitled to attend the Extraordinary General Meeting and to vote on the
special resolutions to approve the proposal. No separate meeting of each class
of preference shareholders is required to be held.

Upon a repayment of capital, holders of the two classes of preference shares
are entitled under the Articles to a repayment as follows:

4.5% cumulative preference shares

*         the nominal amount of £1 on each such share;

*         a premium of 12.5 pence per share; and

*         the accrued dividend to the date of return of capital.



6.5% second cumulative preference shares

*         the nominal amount of £1 on each such share;

*         a premium per share which is the greater of 5 pence or such premium,
if any, certified by the Company's auditors as established by the average of
the daily mean of the prices of the 6.5% second cumulative preference shares
in the Daily Official List of the London Stock Exchange during the period of 6
months immediately preceding the date hereof. As the daily mean of the prices
of the 6.5% second cumulative preference shares in the last 6 months has been
below their nominal value, the premium payable in this case will be 5 pence;
and

*         the accrued dividend to the date of return of capital.

Following shareholder approval, confirmation of the reduction of capital is
required from the High Court, which is then registered with the Registrar of
Companies. This is expected to happen in mid September 2001. Cheques for the
capital, premium and accrued dividend will be posted within 14 days
thereafter. Following the cancellation and repayment, the listing of the
Preference Shares on the Official List of the UK Listing Authority will be
cancelled.

Enquiries:


John Fussey - Group Finance Director

Alan Myers - Company Secretary



Telephone: [phone]