Capital Note Issue

Guinness Peat Group PLC
27 July 2001
                              

               Guinness Peat Group plc ('GPG')

PROPOSED NZ$250 MILLION CAPITAL NOTE ISSUE ('Capital Notes')

Further  to its announcement in May of a possible  issue  of
capital notes to New Zealand investors, GPG has today posted
to   shareholders  a  Circular  convening  an  Extraordinary
General  Meeting ('EGM'), inter alia, to make the  necessary
increases  in  authorised capital of GPG, to  authorise  the
allotment of Capital Notes and to approve the disapplication
of pre-empton rights to allow for their issue. The Offer, to
be  made in New Zealand only, will be fully underwritten  by
JBWere (New Zealand) Limited.

Additional  matters to be considered at the EGM include  the
adoption   of   the  proposed  2001  Share  Option   Scheme,
amendments  to the 1985, 1992 and 1994 Share Option  Schemes
and  a  general authorisation for the Directors  of  GPG  to
allot shares. The EGM will be held at 3.00 p.m. on 20 August
2001 in London.

The  Chairman  of GPG, Sir Ron Brierley, said  'The  Capital
Note issue will be a useful addition to the range of capital
resources  available  to  GPG when  considering  prospective
investment opportunities.'


Enquiries:

Blake Nixon
Guinness Peat Group plc                   00 44 20 7236 0036

Tony Gibbs
Guinness  Peat Group plc NZ  Limited         00 649 379 8888

Kevin Smith/Becky Jewers
Square Mile BSMG Worldwide                00 44 20 7601 1000