Rationalisation Programme

St. Ives PLC
7 January 2002



                 St Ives announces rationalisation programme

The Group indicated in October at the time of the announcement of the
Preliminary Results for the 53 weeks ended 3 August 2001 that it was
experiencing weak trading conditions in many of its markets. Since then,
market conditions have deteriorated further.

Demand for corporate financial print remains exceptionally subdued and we have
seen no indication of any material improvement in activity levels. Lower
levels of advertising expenditure, especially by the leisure and travel
sectors, in addition to the reduction in internet and technology advertising
experienced earlier, have had a significant impact on magazine paginations and
led to the closure of a number of titles. The same factors have also resulted
in reduced demand for all forms of commercial and promotional print in the UK,
Europe and, particularly, the USA. Demand for music and multimedia products
remains weak and volatile. For these reasons, and because markets were already
over-supplied, the Group is experiencing reduced volumes and continuing
pricing pressure.

In these circumstances, it has become necessary critically to review the cost
base of all the Group's businesses and to intensify our cost reduction
programme.



As part of this review, St Ives Direct in the UK is today announcing plans to
cease web offset printing at its Leeds site, which will take effect following
the expiry of the appropriate consultation period. As part of this
rationalisation, it is regrettably proposed to make some 125 jobs redundant.
In future, the Leeds facility will accommodate St Ives Red Letter, whose
operations at Bradford are being transferred to the site, as well as perfect
binding and other finishing activities.

In this financial year to date, a total of about 430 jobs, including those
referred to above, (representing approximately 7 per cent of the total
workforce) will have been made redundant throughout the Group at an aggregate
cost of approximately £4 million.

If conditions in the markets which we serve remain subdued, we currently
believe that the results for the present financial year as a whole (before
taking into account the non-recurring rationalisation costs already referred
to) will be somewhat below the lower end of the range of current market
expectations. We continue to keep the cost base of all our businesses under
active review and further steps in our rationalisation programme may well
become necessary.

In the longer term, we remain confident that the Group's competitive position
in its principal markets continues to be unrivalled and that, by virtue of its
financial strength and our policy of sustained investment in the most modern,
flexible equipment, we shall be able to respond rapidly to any upturn in our
markets when it occurs.

                                    -ends-

Enquiries:

St Ives plc,                     020 7928 8844

Miles Emley                      Chairman
                             
Brian Edwards                    Managing Director

Ray Morley                       Finance Director



Citigate Dewe Rogerson,          020 7638 9571

Duncan Murray