Disposal of Flo-pak (UK) Limited

Macfarlane Group PLC
11 February 2000

MACFARLANE GROUP DISPOSES OF FLO-PAK (UK)

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
Flo-pak (UK) Limited, the manufacturer of expanded polystyrene loose-fill ad
plastic wood products.

The Company has been sold to Freeflow Packaging International Inc., an American
based specialist manufacturer of loose-fill products world-wide, for a cash
consideration of £3.8 million.  The net assets on disposal amount to £3.1m and 
profit on disposal of £0.5m will be recorded after attributable expenses of
sale.

Flo-pak employs 42 people and has an annual turnover of over £3.3 million.  The
company's operating profit for 1999 was £0.4 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 Flo-pak had a diverse
product base which did not readily fit into the four divisions set up in the
second half of 1999.  Macfarlane Group's Merchanting Division will continue to
be a customer of Flo-pak for its loose-fill requirements.  The company has been
sold to a loose-fill and extrusion specialist, who will bring a renewed
management focus its activities.  Both companies identified as being under
strategic review in September 1999 have been sold.

Through its four operating divisions, Merchanting, Labels, Plastics and
Packaging, Macfarlane Group provides high quality products and services to
customers who require total packaging solutions on a global basis.  Further
details of the company's progress will be provided in Macfarlane Group's
preliminary results' announcement on 14 March 2000'.


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