Potential fundraising

Millfield Group PLC
19 June 2006

Millfield Group plc



Statement re potential fundraising



The Board of Millfield Group plc (the "Company") has noted the rise in the
market price of its ordinary shares on Friday of last week.



On 5 May 2006 the Company announced that it was in discussions regarding a
possible offer for the Company.  The Company is no longer in such discussions
with any parties in relation to such an offer but has finalised its enhanced
business strategy referred to in its announcement on 11 May 2006 and has made
progress working towards a capital raising with a view to restoring the
financial strength of the group.



In conjunction with Cenkos Securities Limited, the Board has been pursuing a
placing (the "Placing") of ordinary shares with existing shareholders and other
investors to raise a substantial amount of equity capital. Although the Placing
has not yet been secured indications of interest have been received from a
number of those shareholders and investors.  In addition, agreement has been
reached in principle (and subject to the Placing proceeding) with the providers
of the group's loan finance for a restructuring of their loans, including a
substantial reduction in the amounts which will be required to be repaid.



The Placing is now perceived by the Board as the only practical solution to the
Company's problems.  If the Placing does not proceed however, it is highly
likely that the Company and at least some of its subsidiaries will be placed in
administration in the near future. In this event it would be very unlikely that
the ordinary shares of the Company would have any value.



The Board will make a further announcement shortly.



Contacts:

Millfield Group Plc

Alan Easter                               020 8604 2600



Financial Dynamics

Louise Dolan                              020 7269 7192







Cenkos Securities Limited, which is authorised and regulated by the Financial
Services Authority, is acting for the Company and no one else in connection with
the matters referred to in this announcement and will not be responsible to
anyone other than the Company for providing the protections afforded to its
customers or for providing advice to any other person in relation to the matters
referred to in this announcement.


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