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Orchard Furniture (OFU)

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Thursday 20 January, 2000

Orchard Furniture

Restoration of AIM Quotation & Other News

Orchard Furniture PLC
19 January 2000


                              Orchard Furniture PLC

                          Restoration of AIM quotation
                         Placing of new ordinary shares
                                  Board changes

On 10th January 2000, Orchard Furniture ('Orchard' or 'the Company') announced
that, at a meeting of the Company's creditors held on that day, the terms of the
Company Voluntary Arrangement ('CVA') were approved. It was also announced that
shareholders in the Company had approved the special resolution proposed at the
Extraordinary General Meeting held on the same day. These were necessary steps
towards enabling Orchard to be requoted as a shell company.

Subsequently on 18th January the Company placed 550,000,000 new Ordinary  Shares
of  0.1p  ('the  Placing  Shares') at a price  of  0.2p,  raising  £1.1m before
expenses,  subject  to  admission  of  the Placing  Shares  to  the  Alternative
Investment  Market ('AIM'). Application will be made for the new  shares  to  be
admitted to AIM, and it is anticipated that dealings in the Placing Shares  (and
the existing Ordinary Shares in the Company, which are presently suspended) will
commence on 25th January. In addition, the CVA will result in the issue of up to
18,000,000  new Ordinary Shares to creditors of the Company and it  is  expected
that these shares will be issued by the end of February 2000. The holder of  the
Convertible  Secured  Loan Stock in the Company ('CSLS')  has  given  notice  to
exercise  its  conversion rights in respect of all of the  CSLS,  together  with
accrued  interest  which  will result in the issue of  71,360,000  new  Ordinary
Shares in the Company on 15th February 2000.

At  a Board Meeting on 19th January, A P Appleton, A P Davies and Miss D K Exley
resigned  as  Directors  of  the Company, and A  T  Lawson-Cruttenden  and  R  J
Armstrong  were  appointed to the Board. Mr Lawson-Cruttenden  (aged 44)  is  a
Solicitor  Advocate and is Senior Partner of Lawson-Cruttenden & Co. Mr
Armstrong (aged  52) is a stockbroker with Fiske & Co Ltd who specialises in
raising money for  smaller public companies. Following the Placing, Mr Armstrong
has a holding of  56,250,000  shares  (9.46%) in the Company. Mr 
Lawson-Cruttenden  has  been appointed  Chairman of Orchard.   
H R Gillespie will remain  on  the  Board  as  a non-executive Director.

On requotation, Orchard will initially be a cash shell with no trading business.
It  is  the  intention  of  the new Board of the Company  to  identify  suitable
investments or a single acquisition with a view to enhancing shareholder  value.
It  is  anticipated that the name of the Company will be changed and its  shares
consolidated when the future direction of Orchard has been established.

Peel, Hunt & Company Limited has resigned as Nominated Adviser and Nabarro Wells
&  Co. Limited has been appointed as replacement. Nabarro Wells & Co Limited has
been  granted  an option, exercisable for a period of three years, to  subscribe
5,000,000  new ordinary shares in the Company at a price of 0.2p per share.  It
is  intended that Fiske & Co Ltd will become Nominated Broker in place of  Peel,
Hunt  &  Company  Limited on 25th January 2000, following  the  commencement  of
dealings on AIM.

19th January 2000

Enquiries

Richard Armstrong, Tel: 0171 448 4700


                             APPENDIX
                     
                         Details of new directors
                             

                         Arthur Timothy
                         Lawson-Cruttenden           Richard James Armstrong
Current Directorships    Orchard Furniture PLC       Orchard Furniture PLC
Former directorships 
held in the previous 
five years                  none                           none

Neither Mr Lawson-Cruttenden nor Mr Armstrong has been involved in any
bankruptcies or any receiverships or liquidations of companies where he was a
director at the time of or within the 12 months preceding such events.

                                                                                                                                                                                                                          

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