USA rationalisation

St. Ives PLC
29 January 2004


29th January 2004

                    St Ives announces rationalisation in USA

As stated in the Preliminary Announcement of the results for our last financial
year in October 2003, almost all our markets continue to experience significant
overcapacity, severe pricing pressure and weak demand. In the circumstances our
cost base has been kept under close and constant review.

St Ives will shortly be issuing notice under the WARN Act of the USA of its
intention to close the St Ives Inc, Case-Hoyt facility at Rochester, New York.
St Ives has been in negotiation with the workforce at Rochester with a view to
establishing a cost structure which is sustainable in current market conditions.
Regrettably this has not proved possible and accordingly the facility will close
not later than early April 2004, with the loss of approximately 290 jobs.

In the financial year ended 1st August 2003, St Ives Inc, Case-Hoyt had sales of
approximately $36 million and made a loss before interest of $3.3 million. It
principally supplied the high quality retail, travel, automotive and annual
reports markets and the pricing currently available in these markets is no
longer sufficient to provide an economic return on its cost base. The US
operations of St Ives Burrups are not affected by the changes announced today.

The total cost of closure is estimated to amount to approximately $14 million
(£7.6 million at the current exchange rate) and will be fully provided for as an
exceptional item in the accounts for the current financial year. In addition,
following a review of the goodwill attaching to our US Division as a whole, an
impairment charge of approximately £13 million will be made.

We continue to keep the cost base of all our businesses under active review and
in the absence of any significant upturn in our markets, further rationalisation
may well become necessary. We remain confident of the strength of the Group's
competitive position in our chosen markets and believe that, as a result of our
unrivalled skill and equipment base, we are well positioned to respond to any
upturn in demand when it occurs.



Enquiries:

St Ives       Miles Emley, Chairman
              Brian Edwards, Managing Director
              (after 2.00pm London time) 0207 928 8844

Smithfield    John Antcliffe
              020 7360 4900

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