Disposal of Subsidiary and Board Changes

Ross Group PLC
29 March 2000



                       ROSS GROUP PLC
                 DISPOSAL OF SUBSIDIARY AND
                        BOARD CHANGES

As  indicated in the circular to shareholders dated 2  March
2000  ('the  Circular'), Ross Group PLC ('the Company')  has
been reviewing its non-core activities and in particular has
been   looking  to  divest  its  interest  in  one  of   the
subsidiaries  of  the  Technical  Services  Division.    The
subsidiary,  GEL  (Rhayader)  Limited  ('GRL')  is  in   the
business  of designing and manufacturing gears, gear  trains
and  gear transmissions ('the Business').  On 28 March 2000,
GRL   exchanged   and  completed  contracts   with   Rutland
Engineers Limited under which it agreed to sell the Business
for a total consideration of £70,000, payable in instalments
from  June  2000.   In addition, GRL granted  an  option  to
Rutland Engineers Limited for the purchase of the plant  and
machinery  of  the Business for the sum of  £200,000  to  be
exercised before the end of October 2000.

During  1998,  the last year for which Audited accounts  are
available,  GRL  made  a  pre-tax  profit  of  approximately
£54,000  and  ended  the year with  a  net  asset  value  of
approximately  £97,000.   In 1999,  GRL  suffered  a  severe
downturn in business and despite extensive restructuring  is
expecting to show a significant loss in the year.   As  part
of  the  preparation of the loss estimate for  the  Company,
included within the Circular, GRL has provided £340,000  for
diminution of value associated with the sale.

The  net  proceeds from the sale will be used to reduce  the
bank debt of the Company and the Directors believe that  the
sale  is  in  the  best  interests of the  Company  and  its
shareholders.

As  described in the Circular, following approval of,  inter
alia,  the  Rights  Issue  at  the  Company's  Extraordinary
General  Meeting  held yesterday and admission  of  the  new
ordinary  shares following the capital reorganisation  today
(also  described in the Circular) Marcus P B Evans, David  B
Powell  and  Michael H V Jeans, directors  of  the  Company,
yesterday resigned from the Board of the Company.

In  addition,  and as stated in the Circular, Michael  Simon
was yesterday appointed to the Board of the Company as a non-
executive  director.  Mr Simon, aged  40,  is  an  economics
graduate of the University of Cambridge and a fellow of  the
Institute of Chartered Accountants in England and Wales  and
of  the  Association of Chartered Certified Accountants.  Mr
Simon is a sole practitioner in public practice.

The  Company intends to appoint a non-executive Chairman  to
the  Board  following completion of the Rights Issue  and  a
further announcement will be made in due course.

29 March 2000

Enquiries:

Peter Mottershead   Ross Group PLC      01621 854499
Tim Redfern         Beeson Gregory      020 7488 4040