Daniel Montgomery & Son Disposal

Macfarlane Group PLC
1 December 1999

MACFARLANE GROUP DISPOSES OF DANIEL MONTGOMERY & SON
                                          
                               
John  Ward,  Chairman of Macfarlane Group  PLC,  the  Scottish
based packaging group today announced :-

'I am pleased to report that Macfarlane Group has agreed terms
for   the  sale  of  Daniel  Montgomery  &  Son  Limited,  the
manufacturer  of  injection moulded closures for  the  spirits
industry.   As  announced  in September  1999,  the  household
product range will be consolidated in the plastics division of
Macfarlane Group.

The  Company has been sold to Alucapvit Spa, an Italian  based
manufacturer of closures throughout Europe, for a  total  cash
consideration of £2.0 million (net of attributable  expenses).
The  net  assets on disposal amount to £6.5m and after further
asset write-downs of £2m being effected a loss on disposal  of
£6.5m will be incurred.

Daniel  Montgomery's spirits' business employs 121 people  and
has  an  annual  turnover of over £7 million.   The  company's
operating  losses for calendar year 1999 are  expected  to  be
£1.2 million.

As  part  of  the strategic review of the Company's operations
being carried out by Iain Duffin, our Chief Executive, it  was
recognised that Daniel Montgomery required to expand  overseas
or  become  part  of  a larger concern to  satisfy  increasing
demands  from  major spirits customers to be supplied  from  a
number  of locations not just in Europe but also on  a  global
basis.   Alucapvit Spa. will provide such an  opportunity  for
Daniel Montgomery and we wish both companies every success  in
the future.

Further details of our strategic review, providing details  of
the  progress  achieved in the restructuring of the  Company's
businesses  into  four  focused business  divisions,  will  be
announced on 7 December 1999'.
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Further information:
John M Ward              Chairman            0141 333 9666
Iain D Duffin            Chief Executive     0141 333 9666

Press and Media:

Gordon Beattie           Beattie Media       01698 787878