Acquisition

Molins PLC
27 September 2000

                                      
Molins PLC - Acquisition of the Filtrona Instruments and Automation Business

Molins PLC, the international specialist engineering company, announces  that
it has agreed to acquire FIA for a consideration of £11.75 million payable in
cash, subject  to  an  adjustment based on the net  asset  value  of  FIA  at
completion.   FIA  is  the instruments and automation  business  of  Filtrona
United  Kingdom  Limited  and the entire issued  share  capital  of  Filtrona
Instruments Corporation.

FIA  is  a specialist in the field of process and quality control instruments
for the cigarette industry.  It also supplies specialist packaging machinery.
FIA's turnover in the year ended 31 December 1999 was £17.9 million.

The Board believes that the acquisition will contribute to earnings in 2000.

Completion  of  the  acquisition is conditional upon the approval  of Molins'
ordinary  shareholders.  A circular giving further details of the acquisition
and containing a notice of the Extraordinary General Meeting to be held on 16
October  2000, at which approval for the acquisition will be sought, will  be
sent to shareholders as soon as practicable.

Peter  Byrom,  Chairman  of  Molins,  said:  'The  Board  believes  that  the
acquisition  of  FIA  will consolidate and strengthen the  position  of  both
businesses  in  the tobacco industry.  The combination of the two  businesses
will strengthen Molins' relationship with its major customers and extend  the
range  of  products and services offered.  The acquisition underlines Molins'
commitment to the tobacco industry.'

Information on FIA

FIA  develops,  assembles, sells and maintains process  and  quality  control
instruments  for the cigarette industry.  It is a specialist in  this  field,
and  has  maintained  its position through the quality  of  its  product  and
service  offering  and  its  commitment to  research  and  development.   FIA
operates  on  a  global  basis, with sales of its  products  to  the  tobacco
industry amounting to £15.1 million in the year ended 31 December 1999.

FIA  also  designs,  assembles,  sells and services  packaging  machinery  in
certain  niche  markets, including cigarette filters  and  tube  packing  for
toothpaste and similar products.  Packaging machinery sales in the year ended
31 December 1999 were £2.8 million.

Based  in  Milton  Keynes, also the location of the  headquarters  of Molins'
world-wide  operations, FIA is supported by service and  sales  functions  in
Brazil,  Germany,  Hong  Kong, India, Indonesia, Mexico,  Thailand,  USA  and
Venezuela.  It employs 106 people, of which 82 are in the United Kingdom.

FIA's commitment to new product development is demonstrated by expenditure on
research  and development in excess of £1 million a year in each of the  last
three years.

FIA's  turnover in  the year ended 31 December 1999 was £17.9 million and its
profit before tax was £3.3 million.  The value at 31 December 1999 of the net
assets which are the subject of the acquisition was £6.1 million.

Reasons for the Acquisition

Since  1997 Molins has implemented a fundamental restructuring of its Tobacco
Machinery  division  in  response to the substantial decline  in  its  global
markets,  particularly  in  respect  of original  equipment.  Molins  Tobacco
Machinery  division  is now better positioned to service  its  customer  base
efficiently.

In  its  interim  results  for  the six months ended  30  June  2000,  Molins
announced a steady improvement in its operational performance.  Good progress
has  been  made  in improving the efficiencies and customer  service  in  the
Tobacco Machinery division.  Molins has maintained a strong balance sheet and
had a net cash balance of £3.8 million at the half year end.

Molins  is  committed  to providing its tobacco machinery  customers  with  a
continued  improvement  in service and to work in partnership  with  them  to
address the changing market place.

The  Board  believes  that  the  acquisition will  consolidate  its  existing
relationship  with tobacco machinery customers and enable it to  enhance  its
service  performance  and operational capabilities, whilst  also  underlining
Molins' commitment to the tobacco industry.

The  customer  bases of Molins Tobacco Machinery and FIA  are  similar.   The
combination of the two businesses will increase customer presence and  extend
the  range of products and services offered.  The Board expects that, in  due
course, there will be opportunities to combine resources in certain areas  to
reduce the cost base and enhance customer service.

The  packaging  interests  of  FIA will extend  Molins'  important  packaging
machinery   investments   in   Langen,  Langenpac,   Sandiacre   and   Molins
International Technology Centre.

Current trading and prospects

The  following is an extract from the interim results of Molins for  the  six
months ended 30 June 2000 which were announced on 5 September 2000.
   
   'The  benefit of the actions being taken in the Tobacco Machinery division
   to  improve manufacturing efficiencies and the return on capital  employed
   are  being  gradually realised.  We expect the trading of the division  in
   the  second  half  of 2000 to be better than in the comparable  period  in
   1999.  We also expect the Packaging Machinery division to continue to show
   progress in the second half of 2000.'

FIA's  order  inflow in the first quarter of 2000 was disappointing, compared
with  the  corresponding period in 1999.  Its trading  performance  was  also
affected  by  a  relatively low order book at the start of  the  year.   This
prompted  FIA to make a number of redundancies.  However, the second  quarter
order inflow has been more encouraging.

The  relatively low order levels in the first part of the year will  lead  to
the turnover of FIA being lower in 2000 than in 1999 which, together with the
costs  of  the  redundancies  made, will lead to a  substantial  decrease  in
profit.   However,  given  the improvement in order receipts  in  the  second
quarter  of 2000, a trend which continued in July and August, and the outlook
for  orders  for  the rest of the year, the Board expects an  improvement  in
trading in 2001.

Overall,  the Directors expect that Molins, as enlarged by FIA, will  perform
satisfactorily for the current financial year.


Terms of the Acquisition

Under the acquisition agreement, Filtrona United Kingdom Limited and Filtrona
Holdings Corporation, both subsidiaries of Bunzl plc, will sell FIA to Molins
for  a  cash consideration of £11.75 million, subject to an adjustment  based
upon the tangible net asset value of FIA at completion.

It is expected that the tangible net assets to be acquired at completion will
amount to £3.6 million and that the total acquisition consideration inclusive
of  transaction costs and expenses will amount to £12.2 million.  The  excess
of  the  total  consideration  over the amount of  the  net  tangible  assets
acquired,  amounting  to  £8.6  million, will be  recorded  as  goodwill  and
amortised over a twenty year period.

Completion  of  the  acquisition is conditional  upon  the  approval  of  the
ordinary  shareholders of Molins at an extraordinary general meeting.

A  circular to Molins' shareholders giving further details of the acquisition
and  of  FIA  and  containing  notice of the Extraordinary  General  Meeting,
convened for  16 October 2000, seeking approval for the acquisition, will  be
sent to shareholders as soon as practicable.

Contacts:

Molins PLC
Peter Byrom     Chairman                    01908 216 511
David Cowen     Group Finance Director      01908 216 511

Cazenove & Co.
Arthur Drysdale                             020 7588 2828
Steve Baldwin                               020 7588 2828

Citigate Dewe Rogerson
Margaret George                             020 7638 9571