Offer Update

Millfield Group PLC
01 October 2004


Millfield Group PLC
Offer update
1 October 2004

Not for release, publication or distribution in or into the United States,
Canada, Japan or Australia

RECOMMENDED MERGER OFFER ON BEHALF OF MILLFIELD GROUP PLC ("MILLFIELD") FOR
INTER-ALLIANCE GROUP PLC ("INTER-ALLIANCE")

On 6 August 2004, the boards of Millfield and Inter-Alliance announced the terms
of a recommended Merger Offer for the entire issued and to be issued share
capital of Inter-Alliance, to be made by Collins Stewart, on behalf of
Millfield.

The board of Millfield is pleased to announce that it has received notification
that the Financial Services Authority has approved Millfield becoming a
controller of Inter-Alliance.  The London Stock Exchange has agreed that the
Millfield Shares to be issued as consideration under the Merger Offer and the
existing issued Millfield Shares will be admitted to trading on the Alternative
Investment Market and accordingly the Merger Offer is now declared wholly
unconditional.  Admission is due to take place on 4 October 2004.

As at 3.00pm on 30 September 2004, Millfield had received valid acceptances in
respect of a total of 805,454,465 Inter-Alliance Shares, representing
approximately 88.71 per cent. of Inter-Alliance's issued share capital.

The Merger Offer will remain open until further notice.  Inter-Alliance
Shareholders who wish to accept the Merger Offer, and who have not done so,
should complete their Form(s) of Acceptance, in accordance with the instructions
printed thereon, whether or not their Inter-Alliance Shares are in CREST, and
return them, as soon as possible, to Capita IRG Plc at Corporate Actions
Department, PO Box 166, The Registry, 34 Beckenham Road, Beckenham, Kent BR3
4TH. Additional Forms of Acceptance are available from Capita IRG Plc, by
telephoning 0870 162 3100.

Commenting on the merger, Paul Tebbutt, Chief Executive of Millfield, said:

"During the period of the Offer the joint Millfield and Inter-Alliance teams
have made excellent progress in preparing integration plans.  With the merger
now wholly unconditional, the joint workstream teams can now drive through these
plans, assisted by our integration consultants, Towers Perrin."

Enquiries:

Stephen Keys / Simon Atkinson                  Tel: [phone]
Collins Stewart

Terms defined in the Offer Document dated 6 August 2004, have the same meaning
in this press release unless the context otherwise requires.

To the best of the knowledge and belief of the Directors of Millfield Group plc
(having taken all reasonable care to ensure that such is the case), the
information contained in this document is in accordance with the facts and does
not omit anything likely to affect the import of such information. The Directors
of Millfield Group plc accept responsibility accordingly.

Collins Stewart Limited, which is regulated in the United Kingdom by The
Financial Services Authority, is acting for Millfield and no-one else in
connection with the Offer and will not be responsible to anyone other than
Millfield for providing the protections afforded to its customers or for
providing advice in respect of any matters referred to in this press release.


                      This information is provided by RNS
            The company news service from the London Stock Exchange