International Cash Handling Business Acquired

De La Rue PLC
4 February 2000
                               
                            
                      DE LA RUE PLC
                            
            DE LA RUE ACQUIRES INTERNATIONAL
                 CASH HANDLING BUSINESS
                            
De  La  Rue,  the cash to secure transactions group,  has
today  announced that it is to purchase the international
cash  handling activities of Ascom Autelca AG, the  Swiss
telecommunications  and  service automation  group.  Cash
consideration  is  expected  to  be  CHF  11.7m  (£4.4m),
comprising estimated net assets of CHF 9.7m and  goodwill
of  CHF  2.0m, with a further payment of up to  CHF  4.0m
dependant on certain performance criteria being met.  The
transaction is expected to complete on 31 March 2000 with
the  transfer  of operations taking place on  that  date.
The   closing  is  subject  to  receiving  all  necessary
regulatory approvals.

Ascom  Banking Automation, based in Berne, is  a  leading
European   supplier  of  teller  and  self-service   cash
automation  products. The Ascom cash  handling  operation
manufactures a range of note depositing and coin counting
equipment  including the market leading Twin Safe  Teller
Cash  Recycler  (TCR). Based on the unaudited  management
accounts  for the 12 months ended 31 December  1999,  the
business  had  an estimated turnover of CHF 70m  (£26.4m)
and recorded an operating loss of
CHF  5m  (£1.9m) before interest.  De La Rue has  had  an
agreement  to distribute Ascom cash handling products  in
certain European countries for several years.

Under  the  terms  of  the agreement,  approximately  200
sales,  service and research and development staff across
Europe  will transfer to De La Rue Cash Systems division.
In   addition,   Ascom  Autelca  AG  will   continue   to
manufacture  the  cash handling product range,  including
the Twin Safe TCR, under licence from De La Rue for a  12
month period.

The  integration of Ascom's cash handling activities will
reinforce  De  La  Rue's position as the world's  leading
branch  cash  solutions provider.  The deal will  enhance
the   existing   product  range,  service  networks   and
geographical  spread, particularly in  Europe  with  more
than  40%  of  Ascom's cash handling business  activities
undertaken in Germany.

Commenting  Pietro  Armanini,  managing  director,   Cash
Systems division, said:

'The acquisition of Ascom's cash handling activities will
significantly   strengthen  our  branch  cash   solutions
business. As a leading supplier of banking technology and
cash  processing  automation the Ascom range  complements
the  existing De La Rue service and distribution coverage
and  product  portfolio.  Cash Systems division  can  now
provide  a  unique solution to the banking industry  that
covers  the complete cash cycle within the modern  branch
from self service to the front and back office, including
both  hardware and software solutions.  The Ascom Banking
Automation  team will also add knowledge and considerable
technical expertise to our existing operations.'

There will be costs associated with integrating the Ascom
business (estimated at CHF 6.0m).  It is anticipated that
it  will take up to one year before the main benefits  of
the acquisition show through in increased profits for the
division.



For further information please contact:

Paul Hollingworth   Finance Director         01256 605307
Mark  Fearon     Head of Corporate Affairs   01256 605303
James Garthwaite    Brunswick                0171 404 5959