Conversion of Securities

Quarto Group Inc
03 June 2005


                         
                                        
                              THE QUARTO GROUP, Inc
                                        

                Final conversion of Convertible Preference Shares

Quarto, the London-based and listed international book publisher, announces that
2,947,252 of its convertible cumulative redeemable shares of preferred stock of
US$ 0.10 par value each ('Convertible Preference Shares') have been converted
into 1,768,344 of its shares of common stock of US$ 0.10 par value each
('Ordinary Shares'), taking the Ordinary Shares in issue to 20,444,550 from
18,676,206.

Certificates for the Ordinary Shares arising on conversion together with, if
appropriate, a certificate for any unconverted Convertible Preference Shares and
a cheque in respect of any fractional entitlement will be despatched not later
than June 14th, 2005. It is expected that dealings should commence not later
than June 20th, 2005. Pending the issue of share certificates, transfers will be
certified against the register.

Application will be made to the Council of The Stock Exchange for the Ordinary
Shares issued on the exercise of the conversion rights to be admitted to the
Official List. Ordinary Shares to be issued will rank for all dividends and
other distributions made or paid in respect of the current financial year and
will rank pari passu in all other respects with the Ordinary Shares in issue on
the conversion date.

Following the conversion, Directors' and Quarto's Treasury shareholdings have
changed as follows:

                   Ordinary Shares             Convertible Preference Shares
           Post-conversion   Pre-conversion   Post-conversion   Pre-conversion

L F                2,864,985        2,858,985               -           10,000
Orbach               (14.01%)         (15.31%)
M J            51,700 (0.25%)   42,700 (0.23%)              -           15,000
Mousley
Quarto       887,000 (4.34%)  689,000 (3.69%)               -          330,000

The outstanding 2,255,272 Convertible Preference Shares will be redeemed at a
price of £1.00 each on December 31st, 2005.

Enquiries:

The Quarto Group, Inc.                                           020-7700 9000
Mick Mousley (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166




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