Disposal/Trading Statement

CARR'S MILLING INDUSTRIES PLC
16 July 1999

                 CARR'S MILLING INDUSTRIES PLC
            ('Carrs', the 'Group' or the 'Company')

                   Disposal of joint venture
            Update on current trading and prospects

Disposal of Joint Venture

The  Directors of Carrs, the agriculture, food and engineering
group, announce that the Company has reached agreement for the
sale  of  its  50  per  cent. interest in  Robertsons  Limited
('Robertsons')  to Kears Group Limited ('Kears Group'),  along
with the leasehold property in Carlisle currently occupied  by
Robertsons.  The aggregate consideration receivable  by  Carrs
for   the  disposal  will  be  £3.41m  in  cash,  payable   at
completion.

Robertsons  carries on business principally  as  a  baker  and
distributor of bread to a range of customers, including  major
retail  chains,  and has operated as a joint  venture  company
since  October 1994.  Kears Group, which indirectly  owns  the
other  50 per cent. interest in Robertsons and is a subsidiary
of Irish-based Greencore Group plc, has responsibility for its
management.

The   disposal  reflects  the  board's  strategy  of  focusing
resources  more closely on developing Carrs' core  businesses.
The  disposal  will  initially be earnings  negative  for  the
Group.   However,  the  directors believe  it  will  have  the
following significant advantages for the Group:

*     the  disposal  will raise cash which will  initially  be
      used to reduce borrowings;
      
*     it  will  allow  the  greater part of  the  cash  raised
      subsequently   to  be  invested  in  essential   capital
      improvements  at the Group's flour mill  at  Silloth-on-
      Solway,  Cumbria.   The  directors  believe  the   flour
      milling  business  will  benefit  substantially  in  the
      longer term from this capital investment, and that  such
      investment is necessary to maintain its position in  the
      market;
      
*     the  disposal will create greater flexibility within the
      Group's   flour  milling  operations  and   enable   the
      directors  to  develop  their strategy  of  seeking  new
      supply arrangements for additional product lines; and
      
*     Carrs  will  no  longer have an interest in  a  business
      which is in competition with a number of its customers.

For the year ended 26 September 1998, Robertsons made a profit
before  taxation of £1,057,000 on sales of £13,315,000 and  as
at 26 September 1998, Robertsons had net assets of £1,730,000.
The  net  book value of the bakery property as at 27  February
1999 was £933,000.

The disposal is conditional upon the approval of shareholders.
A  circular  and  a notice convening an extraordinary  general
meeting  of  the Company, to be held at 11.00am  on  2  August
1999, will be sent to shareholders later today.

Current Trading and Prospects

Since the interim results were published on 28 April 1999, the
Group's trading environment and outlook have remained much the
same.  Trading conditions are still very competitive; however,
the   outlook  for  the  Group  following  the  disposal  (the
'Continuing Group') in the next 12 months is encouraging.   In
particular,  the  restructuring of  the  Group's  agricultural
activities,  the principal area of its business, continues  to
provide benefits, although these are currently hindered by the
strength  of  the  pound  against the Euro,  the  agricultural
spending climate and over-capacity in the markets in which the
Continuing  Group operates.  The Board is confident  that  the
Continuing Group is well placed to benefit from any upturn  in
the economy and in the various markets in which the Continuing
Group trades.


Enquiries:

Carr's Milling Industries PLC                  01228 528291
  Chris Holmes (Chief Executive)               
  Ron Wood (Finance Director)

Charterhouse Securities Limited                0171 248 4000
  Colin La Fontaine Jackson                    

Bankside Consultants Limited                   0171 220 7477
  Charles Ponsonby