Strategic Review

Nichols PLC
06 March 2003









Date:           Embargoed until 2.30pm, Thursday 6 March 2003



Contacts:       John Nichols, Chairman
                Gary Unsworth, Chief Executive
                Brendan Hynes, Finance Director
                Nichols plc
                Telephone:      [phone]



               Alistair Mackinnon-Musson
               Philip Dennis
               Hudson Sandler
               Telephone:  [phone]
               Email: [e-mail]


                                  Nichols plc

                           Result of Strategic Review


As part of a recent Strategic Review, the Board of Nichols plc, the soft drinks,
food and foodservice group, today announces its intention to improve operating
efficiencies and significantly reduce its cost base through the rationalisation
of the Group's manufacturing facilities.


The quality business undertaken for blue chip clients by Stockpack, the contract
packing operation currently based in Stockport, will be relocated to the Nichols
Foods' site at Haydock.  This will result in the closure of the Stockport
factory and a net reduction in the headcount of approximately 130.  In order to
reduce the Group's cost base still further, the manufacturing of soft drinks,
including the Vimto, Indigo and Sunkist brands, is to be outsourced resulting in
the closure of the Golborne factory with an additional headcount reduction of
around 60 employees.



Nichols will continue to retain direct control of the sales and distribution
activities relating to all of its soft drinks brands.



The estimated total cost of this restructuring will be around £10 million, of
which approximately £6 million relates to fixed asset write-downs of a non-cash
nature, with the balance comprising mainly of redundancy and relocation costs.
This does not take into account any proceeds arising from the disposal of the
freehold properties at Stockport and Golborne which, the board has been advised,
have a current market value of around £8 million, in line with current book
value.  Excluding property disposals, the annual benefit to the Group of the
measures being undertaken is estimated to be in excess of £2 million at the
operating profit level.


The Group's results for the year ended 31 December 2002 will be in line with
market expectations of a profit before tax of approximately £5.6 million,
excluding £6.2m of exceptional costs relating to the strategic review and a
further £4.9m which relates to goodwill associated with the acquisition of
Balmoral.  Further details of these and of the strategic review will be included
in the preliminary announcement on 26 March 2003.



                                      -2-



Commenting, John Nichols, Chairman said:


'Our strategic review has been thorough and although we regret the reduction in
headcount we are confident the planned changes are absolutely the right ones for
the business going forward.  Having made them we will be well positioned to face
the increasingly competitive market conditions and to grow future profits.'


 - Ends -




Notes to Editors:



Nichols plc has three principal operations:



1)  Soft Drinks (primarily involved in the manufacture and sale of soft drinks,
including Vimto, throughout the world and Sunkist in the UK)



2) Food Products and Beverage Systems (including Nichols Foods, the manufacturer
and supplier to the vending, foodservice and retail markets; Balmoral, supplier
of hot beverage systems and Cabana, soft drinks on draught) and



3) Co-packing (which includes Stockpack, the group's contract food packing
operation).




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