Interim Results - 6 Months to 2 October 1999

De La Rue PLC
23 November 1999



INTERIM STATEMENT

Six months to 2 October 1999

HIGHLIGHTS

- Headline earnings per share (before reorganisation costs) of 11.7p up 5.4p 
  or 86% on comparable period.

- Operating profits from continuing operations up £9.7m at £25.3m.

- Profit before taxation and exceptional items up £15.4m at £34.7m.

- Revitalisation of business activities on track.

- Appointed external managing director to head up new Services and Solutions 
  business.

- Card activities disposed of with approximately £100m to be returned to 
  shareholders (circular to be sent to shareholders in early December).

- Interim dividend unchanged at 4.0p per share.


Ian Much, chief executive of De La Rue plc commented on the results:

'The half year results are encouraging.  The restructuring of our banknote
operations has now been completed and the benefits have shown through in
increased profitability.  It is also pleasing to report significant progress
in the restructuring of Cash Systems.

'During the first half we have also initiated a series of major changes;
including the disposal of our card activities, launch of our new Services and
Solutions division and the proposed repayment of capital to shareholders.

'We therefore remain confident of the long term future success of the Group.'


An unchanged interim dividend of 4p per share will be paid on 6 April 2000 to
shareholders on the register on 17 December 1999.


Enquiries:   De La Rue plc

Paul Hollingworth    Finance Director              01256 605307
Mark Fearon          Head of Corporate Affairs     01256 605303
                                        Pager no:  01754 284191


                                                                              
                                                   23 November 1999
DIRECTORS' REVIEW


Group Results

It is pleasing to report that the first half results reflected the continuing
improvement of De La Rue's trading performance which started to become evident
in the second half of last year.  Operating profit from continuing activities
(before reorganisation costs) is up £9.7m on the comparable period at £25.3m.
The main drivers behind this increase have been the successful reorganisation
of our banknote business and an improvement in the operating performance of
Cash Systems as the results of their major reorganisation programme start to
take effect.  Profit before tax and exceptional items was £34.7m, a £15.4m
improvement on last year's first half result of £19.3m.  Profit before tax was
£81.7m compared with £7.8m in 1998/99 as the first half this year included the
exceptional gain of £57.4m on the sale of our Card activities. Earnings per
share excluding non-recurring items increased from 6.3p to 11.7p.

Dividend

An unchanged interim dividend of 4p per share will be paid on 6 April 2000 to
shareholders on the register on 17 December 1999.

Senior Appointments

We are delighted that Paul Hollingworth joined the Board on 1 August as
Finance Director.  Paul had previously been finance director of English China
Clays plc, VP finance of Textron Turf Care and finance director of Ransomes
plc.  In addition we are pleased to confirm that we have appointed Christopher
Chadwick, who was previously Managing Director of Guardian Direct, one of the
UK's largest direct insurers, to head up our new Services and Solutions
division.  We have also made other changes to strengthen our senior management
team and implemented a management development plan.

Operations (continuing)

Cash Systems
                                                                   
                         1999/00       1998/99               1998/99
                         Half Year     Half Year             Full Year
                           £m            £m                     £m

Sales                    132.5         138.6                 286.6
Operating profit/(loss)    0.4          (2.7)                 (6.7)


As we explained in the annual report, fundamental action was required to
recover a dire trading position within Cash Systems.  The second half of last
year saw the division lose £4.0m and, whilst the breakeven position achieved
in the first half of the current year is by no means satisfactory, it does
represent a substantial shift in the trend of Cash Systems' results which
should see the second half record a modest profit.  As expected, sales were
down as we focused on the products and geographical areas which were most
profitable.

We have seen the launch of several new products such as the 6000 cash
processor, the TCD2000 teller cash dispenser and the 8000c teller cash
recycler.  It is pleasing to report that new products sales, as a percentage
of total product sales, were 20% compared to 14% for last year.  The increased
emphasis on the service element of our product offering, through focusing on
this as a separate profit centre, has also benefited the business.

The reorganisation plan is proceeding well.  Of the job losses announced last
year, 436 of the 500 have now taken place, with the balance to follow in the
second half.  The senior management team is now in place and has conducted a
strategic review of the business, identifying areas of opportunity.  The main
benefit of the reorganisation will only come through in the following
financial year and we believe we are still on track to exit the next financial
year with operating margins at a running rate in excess of 10%.


Security Paper & Print
                       1999/00        1998/99            1998/99
                       Half Year      Half Year          Full Year
                       £m             £m                 £m

Sales                  121.9           125.0              263.5
Operating profit        24.9            18.3               43.1


The reorganisation of our Currency business, announced last year, was largely
completed in the first half of this year and the benefits have shown through
in increased profitability.  The focus on achieving a better quality mix of
business has seen an increase in average banknote prices which has further
improved profitability in the first half.  The banknote business has also
benefited from a large overspill order which will come through more strongly
in the second half of the current year but will then run down over the course
of the following year.  Although banknote paper volumes have declined since
the year end, prices achieved were better than expected which largely offset
the impact on profits.  The non-currency businesses performed well, helped in
particular by growth in the use of holograms and also increased call-off from
the Microsoft contract.  

Services & Solutions

Our plans to create a new Services and Solutions division are taking shape. 
We intend to establish and account for this division as a separate unit with
effect from 2 April 2000. We have already decided that the existing businesses
of Holographics, Identity Systems, Transaction Services, Brand Protection and
Royal Mint Services, with total turnover of £48m for the year ended 31 March
1999, will form the nucleus of this new division.  The three core areas that
the division will concentrate on are

      - related services to core customers
      - brand protection services 
      - electronic security services

We believe these three areas have exciting potential and we will be in a
position to provide more details to shareholders as to our future plans and
expectations for this division in the annual report.

Associates

Profit from associates before interest and tax fell by £3.3m to £6.7m, mainly
as a result of a reduction in profits at Camelot.  The fall at Camelot was
expected as it approaches the end of the current licence period. We welcome
the Post Office to the Camelot consortium which plans to re-tender for the
2001-2007 lottery licence.  The timetable for the renewal of the lottery calls
for submissions by 29 February 2000 with the results known by June 2000.  The
actual licence to run the lottery ends on 30 September 2001. De La Rue Giori,
which supplies banknote printing machinery, had a reasonable first half but
trading is expected to be more difficult in the second half.  

Interest

The Group's interest charge was £2.4m (including interest received by
associates of £1.3m), which is £0.9m better than the same period last year. 
The second half will benefit from the interest proceeds on the Card disposal.

Taxation

Excluding exceptional items, the underlying effective tax rate was 24%,
similar to last year's full year rate.  We expect that, in the absence of
unforeseen events, the tax rate for the full year will be at a similar level.

Exceptional Items

In the 1999 annual report we stated that the reorganisation costs associated
with Cash Systems and Security Paper & Print would result in a £25m charge to
this financial year's profit and loss account.  Of this £10.4m has been
incurred at the half year.  The full year estimate remains £25m.  The sale of
the Card activities resulted in an exceptional gain before tax of £57.4m after
deducting associated goodwill, previously written off to reserves, amounting
to £72m.  The net exceptional gain in the first half year is £47m before tax
and £45.6m after tax.

Cashflow & Borrowings

As a result of the disposal of the Card activities for a gross consideration
of £200m the Group ended the half year with a net cash position of £39.3m. 
Excluding the benefit of disposals the net cash outflow in the period was
£34.3m.  The main reason for this outflow was the payment of both the interim
and final dividend in the first half of the year and dividends received from
associate companies were £14.9m less, mainly as a result of De La Rue Giori
not paying any dividends.  Cash inflow from operating activities was £11.1m,
up £5.7m on the comparable period last year.

Disposal of Card Activities

On 31 August we announced the disposal of our Card activities to F C Oberthur
of France for a gross consideration of £200m.  The sale was completed on 1
October and is reflected in the interim results, including the net gain before
tax from the disposal of £57.4m (related tax of £2.7m).  The Card activities
recorded an operating profit of £5.1m for the first half (1998:  loss of
£3.9m) driven mainly by demand for SIM cards from the telecoms sector. As a
result of the disposal, Kevin Loosemore, the Executive Director in charge of
the Card Systems division, left the Group on 31 October and we would like to
express our gratitude to Kevin on behalf of the Board for his contribution to
De La Rue.

We have retained two activities from the Card Systems division.  These are
Identity Systems and Transaction Services which have annual sales of £21.0m. 
Although these activities will form an important part of the new Services and
Solutions division, they are included in the interim results within the 
Security Paper and Print division.

Repayment of Capital

We have today announced details of a proposed return of capital of
approximately £103.7 million, equivalent to 46 pence per share to
shareholders.  This return of capital is in line with the intention announced
on 31 August with the sale of the Card activities of our Card Systems
division.  The return will be achieved by the creation of a new company (to
carry the De La Rue name) which, subject to shareholder and Court approval,
will result in shareholders receiving for every 20 existing shares 17 new
shares and £9.20p in cash.

A circular convening a Court meeting and Extraordinary General Meeting
together with full Listing Particulars for the new company will be sent to
shareholders in early December.  The shareholder meetings will be held in
early January 2000 and, conditional upon shareholder and Court approval,
dealings in New De La Rue shares are expected to commence in early February
with the capital repaid to shareholders as early as possible after that date.

Year 2000

We have a carefully planned programme designed to ensure that the Group should
not experience any significant disruption to its businesses as a result of the
potential problems associated with the Year 2000 date change.

Outlook

Trading in our operations since the half year has continued in line with our
expectations.  We estimate the contribution from associate companies in the
second half will be at similar levels to the first half.


In the first half we initiated a series of major changes; including the
disposal of our Card activities, launch of the new Services and Solutions
division and the proposed repayment of capital to shareholders.  Furthermore,
the restructuring and reorganisation plan is well on track to deliver results.
 We therefore remain confident of the long term future success of the Group.

This interim statement was approved by the Board on 22 November 1999.



Brandon Gough
Chairman


GROUP PROFIT AND LOSS ACCOUNT
FOR THE HALF YEAR ENDED 2 OCTOBER 1999

                                                                              
                                                1999/00    1998/99    1998/99
                                                   Half       Half       Full
                                                   Year       Year       Year
                                                        (restated) (restated)
Notes                                                £m         £m         £m
      Turnover       
      Continuing operations                       252.9      261.2      544.6
      Discontinued operations                      84.7      109.0      193.3

   1                                              337.6      370.2      737.9

      Operating profit/(loss)
      Continuing operations                        25.3       15.6       36.4
      Reorganisation costs                        (10.4)     (11.3)     (48.5)
                                                   14.9        4.3      (12.1)
      Discontinued operations                       5.1       (3.0)       - 
   1                                               20.0        1.3      (12.1)

      Share of profits of associate companies       6.7       10.0       26.7
      Loss on the disposal of continuing 
        operations                                   -        (2.5)      (2.1)
      Profit/(loss) on the disposal of 
        discontinued operations                    57.4        -        (22.6)
      Provision utilisation (loss on discontinued 
        operations)                                  -         -          6.4
      Profit on the part disposal of the 
        shareholding in Camelot                      -         2.3        2.3

      Profit/(loss) on ordinary activities 
        before interest                            84.1       11.1       (1.4)
      Net interest:      Group                     (3.7)      (4.6)      (8.8)
                         Associates                 1.3        1.3        2.8
                                                   (2.4)      (3.3)      (6.0)

      Profit/(loss) on ordinary activities 
        before taxation                            81.7        7.8       (7.4)
      Tax on profit/(loss) on ordinary activities  (9.6)      (1.8)      (5.7)

      Profit/(loss) on ordinary activities 
        after taxation                             72.1        6.0      (13.1)
      Equity minority interests                    (0.3)      (0.2)      (0.9)

      Profit/(loss) for the period                 71.8        5.8      (14.0)
      Dividends (including non-equity dividends)   (9.0)      (9.0)     (27.0)

      Transferred to/(from) reserves               62.8       (3.2)     (41.0)

   2  Earnings per ordinary share                  31.9p       2.6p     (6.2)p
   2  Diluted earnings per ordinary share          31.7p       2.6p     (6.2)p
   2  Headline earnings per ordinary share before  11.7p       6.3p     18.8p
        reorganisation costs
      Dividends per ordinary share                  4.0p       4.0p     12.0p

GROUP BALANCE SHEET
AT 2 OCTOBER 1999

                                                      1999/00  1998/99 1998/99
                                                         Half     Half    Full
                                                         Year     Year    Year
                                                           £m       £m      £m
Fixed assets
Tangible assets                                         169.2   223.9   211.9
Intangible assets                                         2.3     4.4     5.0
Investments:        Associates                           76.9    63.0    72.7
                    Other investments                    12.1    13.0    14.0

                                                        260.5   304.3   303.6

Current assets
Stocks                                                   93.7   128.0    98.4
Debtors                                                 124.1   156.6   176.0
Assets held for disposal                                  0.3     0.8     0.3
Cash at bank and in hand                                185.0    61.5    49.0

                                                        403.1   346.9   323.7

Creditors: amounts falling due within one year
Short term borrowings                                   (75.5)  (88.3)  (99.6)
Other creditors                                        (180.5) (216.6) (251.2)
Net current assets/(liabilities)                        147.1    42.0   (27.1)

Total assets less current liabilities                   407.6   346.3   276.5

Creditors: amounts falling due after more than one year
Long term borrowings                                    (70.2) (106.3)  (75.7)
Other creditors                                          (6.5)   (8.4)   (5.9)
Provisions for liabilities and charges                  (65.4)  (68.1)  (61.3)
                                                        265.5   163.5   133.6

Capital and reserves
Called up share capital                                  56.8    56.8    56.8
Share premium account                                    11.6    11.6    11.6
Revaluation reserve                                       1.8     1.9     1.8
Profit and loss account                                 192.5    89.2    60.4

Shareholders' funds (including non-equity interests)    262.7   159.5   130.6
Equity minority interests                                 2.8     4.0     3.0
                                                        265.5   163.5   133.6


GROUP CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 2 OCTOBER 1999

                                                                              
                                                     1999/00  1998/99  1998/99
                                                        Half     Half     Full
                                                        Year     Year     Year
Note                                                      £m       £m       £m
   3a   Cash inflow from operating activities           11.1      5.4    17.5

        Dividends received from associate companies      3.2     18.1    21.3

   3b   Returns on investments and servicing of finance (4.8)    (4.7)  (10.5)

        Taxation                                        (0.4)    (7.3)  (11.1)

   3c   Capital expenditure and financial investment   (16.4)   (14.6)  (26.5)

   3d   Acquisitions and disposals                     194.5      3.7    19.5

        Equity dividends paid                          (27.0)   (10.1)  (10.1)


        Cash inflow/(outflow) before use of liquid 
        resources and financing                        160.2    (9.5)     0.1

   3e   Management of liquid resources                (143.3)   (8.6)    (0.1)

   3f   Financing                                      (14.4)   10.4    (10.2)

        Increase/(decrease) in cash in the period        2.5    (7.7)   (10.2)

        Reconciliation of net cash flow to movement in
        net cash/(debt)
        Increase/(decrease) in cash in the period        2.5    (7.7)   (10.2)
        Cash outflow from increase in liquid resources 143.3     8.6      0.1
        Cash outflow/(inflow) from decrease/(increase) 
        in debt                                         14.4   (10.4)    10.2

        Change in net debt resulting from cash flows    160.2   (9.5)     0.1

        Loans and finance leases disposed/(acquired)
        with subsidiaries                                 3.7   (0.5)    (0.5)
        Fixed assets acquired under finance leases         -      -      (1.4)
        Translation difference                            1.7   (1.8)    (3.2)

        Movement in net cash/(debt) in the period       165.6  (11.8)    (5.0)
        Net debt at start of period                    (126.3)(121.3)  (121.3)

        Net cash/(debt) at end of period                 39.3 (133.1)  (126.3)

        Analysis of net debt
        Cash                                             33.2   44.1     40.4
        Liquid resources                                151.8   17.4      8.6
        Overdrafts                                      (18.0) (28.3)   (28.5)
        Other debt due within one year                  (57.5) (60.0)   (71.1)
        Other debt due after one year                   (70.2)(106.3)   (75.7)

        Net cash/(debt) at end of period                 39.3 (133.1)  (126.3)

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE HALF YEAR ENDED 2 OCTOBER 1999

                                                   1999/00    1998/99  1998/99
                                                      Half       Half     Full
                                                      Year       Year     Year
                                                        £m         £m       £m


Profit/(loss) for the period:      Group              65.8       (2.4)  (36.5)
                                   Associates          6.0        8.2    22.5
                                                      71.8        5.8   (14.0)

Currency translation differences on foreign
Currency net investments                              (2.7)      (1.3)   (0.4)

Total recognised gains/(losses) for the period        69.1        4.5   (14.4)



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE HALF YEAR ENDED 2 OCTOBER 1999

                                                    1999/00   1998/99  1998/99
                                                       Half      Half     Full
                                                       Year      Year     Year
                                                         £m        £m       £m

Profit/(loss) for the period                           71.8       5.8   (14.0)
Dividends                                              (9.0)     (9.0)  (27.0)

                                                       62.8      (3.2)  (41.0)
Currency translation differences on foreign
Currency net investments                               (2.7)     (1.3)   (0.4)
Goodwill - Philips acquisition                           -         -     (0.2)
         - Card activities disposal                    72.0        -       - 
         - Terminals disposal                            -         -      8.2
         - Other                                         -        0.6     0.6

Net increase / (reduction) in shareholders' funds      132.1     (3.9)  (32.8)
Opening shareholders' funds                            130.6    163.4   163.4

Closing shareholders' funds                            262.7    159.5   130.6


NOTES TO THE INTERIM STATEMENT

1.   Segmental analysis                          1999/00     1998/99   1998/99

                                                    Half        Half      Full
                                                    Year        Year      Year
                                                          (restated)(restated)
                                                      £m          £m        £m

      Turnover by class of business

      Continuing operations      Cash Systems      132.5       138.6    286.6
                         Security Paper and Print  121.9       125.0    263.5
      Less inter-segment sales                      (1.5)       (2.4)    (5.5)
                                                   252.9       261.2    544.6

      Discontinued operations    Cash Systems         -         40.5     40.5
                                 Card Systems       84.7        68.5    152.8
                                                    84.7       109.0    193.3

                                                   337.6       370.2    737.9

      Operating profit by class of business

      Continuing operations      Cash Systems        0.4        (2.7)    (6.7)
                           Security Paper and Print 24.9        18.3     43.1
                                                    25.3        15.6     36.4

      Reorganisation costs        Cash Systems      (8.1)       (3.9)   (25.9)
                           Security Paper and Print (2.3)       (7.4)   (18.7)
                                  Head Office         -           -      (3.9)
                                                   (10.4)      (11.3)   (48.5)

      Discontinued operations     Cash Systems        -          0.9      0.9
                                  Card Systems       5.1        (3.9)    (0.9)
                                                     5.1        (3.0)      - 
                                                                              
                                                    20.0         1.3    (12.1)


NOTES TO THE INTERIM STATEMENT

1.    Segmental analysis (continued)              1999/00    1998/99  1998/99
                                                     Half       Half     Full
                                                     Year       Year     Year
                                                       £m         £m      £m
      Turnover by geographical area of operation

      United Kingdom and Ireland                    182.2       177.4   383.8
      Rest of Europe                                132.4       116.3   255.3
      The Americas                                   62.2       116.6   190.5
      Rest of world                                  29.2        19.7    51.7
      Less inter-area sales                         (68.4)      (59.8) (143.4)

                                                    337.6       370.2   737.9

      Operating profit by geographical area of operation

      United Kingdom and Ireland                      1.7        (3.8)  (34.9)
      Rest of Europe                                 12.7         3.0    13.3
      The Americas                                    3.9         3.3     5.7
      Rest of world                                   1.7        (1.2)    3.8

                                                     20.0         1.3   (12.1)

Turnover by geographical area of destination

      United Kingdom and Ireland                     47.7        48.7   102.9
      Rest of Europe                                128.7       112.7   255.0
      The Americas                                   86.7       136.1   230.6
      Rest of world                                  74.5        72.7   149.4

                                                    337.6       370.2   737.9

2.   Reconciliation of earnings per share           pence       pence   pence
                                                    per         per     per
                                                    share       share   share

      As calculated under FRS 14                     31.9         2.6    (6.2)
      Loss on the disposal of continuing operations    -          1.0     0.9 
     (Profit)/loss on the disposal of discontinued 
        operations                                  (24.3)         -      6.5
      Profit on disposal of fixed assets and assets 
        held for disposal                            (0.3)       (0.8)   (0.8)
      Profit on the part disposal of the 
        shareholding in Camelot                        -         (1.0)   (1.0)
      Amortisation of goodwill                        0.3         0.3     0.7 
      Headline earnings per share as defined by the 
        IIMR                                          7.6         2.1     0.1
      Reorganisation costs                            4.1         4.2    18.7
      Headline earnings per share before 
        reorganisation costs                         11.7         6.3    18.8


      The EPS of 31.9p as calculated under FRS 14 is the £71.8m profit for the
      period divided by 225,325,233 shares in issue.


NOTES TO THE INTERIM STATEMENT
                                                        Half    Half     Full
                                                        Year    Year     Year
3.      Notes to group cash flow statement           1999/00 1998/99  1998/99
                                                         £m      £m       £m
a      Reconciliation of operating profit to
       net cash inflow from operating activities

       Operating profit/(loss)                         20.0     1.3    (12.1)
       Depreciation                                    14.7    15.1     31.6
       Increase in stocks                             (12.3)  (19.4)    (3.6)
       Decrease/(increase)  in debtors                  9.3     3.5    (26.7)
       (Decrease)/increase in creditors               (15.2)    4.6     22.6
       (Decrease)/increase in reorganisation 
          provisions                                   (5.8)    3.3      5.3
        Other items                                     0.4    (3.0)     0.4


       Net cash inflow from operating activities       11.1     5.4     17.5

b      Returns on investments and servicing of finance

       Interest received                                4.2     7.0      3.4
       Interest paid                                   (7.9)  (11.1)   (12.2)
       Interest element of finance lease payments      (0.2)   (0.2)    (0.4)
       Dividends paid to minority shareholders         (0.9)   (0.4)    (1.3)

       Net cash outflow from returns on investments 
         and servicing of finance                      (4.8)   (4.7)   (10.5)

c      Capital expenditure and financial investment

       Purchase of tangible fixed assets              (13.1)  (19.2)   (35.0)
       Purchase of intangible assets                   (2.3)     -        -
       Sale of tangible fixed assets                    0.1     0.9      3.4
       Purchase of investments                         (2.5)   (1.3)    (1.3)

       Sale of investments                              1.4     5.0      6.4

       Net cash outflow for capital expenditure and 
         financial investment                         (16.4)  (14.6)   (26.5)

d      Acquisitions and disposals

       Purchase of subsidiary undertakings               -     (6.9)    (7.1)
       Net cash acquired with subsidiary undertakings    -      0.4      0.9
       Sale of subsidiary undertakings                192.5     7.5     23.2
       Net overdrafts/(cash) sold with subsidiary
         undertakings                                   1.3      -      (1.5)
       Sale of assets held for disposal                 0.7     2.7      4.0

       Net cash inflow for acquisitions and 
         disposals                                    194.5     3.7     19.5

       The £192.5m proceeds from the sale of subsidiary undertakings comprises
       £200.0m received in respect of the disposal of the Card activities, 
       partially offset by a payment of £7.5m to Ingenico in relation to the 
       disposal last year of the Group's terminals business.

e      Management of liquid resources

       Net increase in short term deposits           (143.3)  (8.6)     (0.1)

f      Financing

       Debt due within one year:
           Decrease in short term borrowings           (0.5)    -       (0.2)
           Loans (repaid)/raised                      (11.5)  13.9      (8.4)
       Debt due beyond one year:
           Loans raised                                 0.7    0.2       5.6
           Loans repaid                                (1.9)  (2.9)     (5.1)
       Capital element of finance lease rental 
          repayments                                   (1.2)  (0.8)     (2.1)

       Net cash inflow from financing                 (14.4)   10.4    (10.2)


Notes

1.   This interim statement has been prepared in accordance with the
     guidelines published by the Accounting Standards Board.

2.   The statement has been prepared applying the accounting policies
     described in pages 36 and 37 of the 1999 Report and Accounts, and should
     be read in conjunction with those Report and Accounts.

3.   The results for the half years to 2 October 1999 and 30 September 1998
     are unaudited and do not constitute the Group's statutory accounts.    
     However, the auditors have conducted a review of the interim results and
     their opinion is published on page 7.

4.   The statutory accounts for the year ended 31 March 1999 have been 
     delivered to the Registrar of Companies.  The report of the auditors on
     those accounts was unqualified and did not contain a statement under
     either section 237(2) or 237(3) of the Companies Act 1985.

5.   This interim statement is being posted to all shareholders and copies are
     available from the Company Secretary, De La Rue plc, De La Rue House,
     Jays Close, Viables, Basingstoke, Hampshire RG22 4BS.

6.   The 1998 half year comparatives have been restated to classify the 
     Group's terminals business (disposed during the year ended 31 March 1999)
     and the Card activities (disposed on 1 October 1999) as discontinued.

7.   The 1999 full year comparatives have been restated to classify the
     Group's Card activities (disposed on 1 October 1999) as discontinued.

8.   The results of the residual Card Systems activities (Identity Systems and
     Transaction Services) have been included within Security Paper and Print 
     Division.