Disposal

Guinness Peat Group PLC
12 August 2003




                            GUINNESS PEAT GROUP PLC
                                  ANNOUNCEMENT



Guinness Peat Group plc ("GPG") announces that its wholly owned US subsidiary,
Staveley Inc., on 11 August 2003 sold its Non-Destructive Testing Services
Division.  The consideration which has been satisfied in cash is US$37 million
(£23.1 million).


In addition to operating laboratory testing facilities for oil and fuel samples
and materials analysis, Staveley Inc., will continue to manufacture
non-destructive test equipment.


On disposal the value of the net assets of the business being sold was US$6.5
million (£4.1 million) and the pre-tax profits for the twelve months ending 31
December 2002 attributable to the business were approximately US$3.6  million
(£2.2 million).


The Guinness Peat Group will utilise the proceeds for general corporate
purposes.





J R Russell
Company Secretary
11 August 2003




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