Chromagem Acquired for $2.8m

API Group PLC
21 March 2000


                   API ACQUIRES AND STRENGTHENS POSITION IN
                        HOLOGRAPHIC DESIGN AND PRODUCTS
                                       
API  plc, the specialist foils, laminates and packaging group, announced today
the  acquisition of Chromagen, based in Ohio, for a cash consideration of $2.8
million  (£1.8  million) from its founders.  Formed in 1982,  Chromagen  is  a
leading designer and originator of diffraction patterns used in the production
of holography for premium packaging and security devices and complements API's
manufacturing activities in these areas.

API  regards anti-counterfeiting, document authentication and brand protection
as  some  of  the fastest growing global market places and has  been  actively
developing  its  products  and services in these  areas.  The  Group  supplies
products  in many security and packaging areas, including holograms for  brand
authentication, bank notes, cheques, ticketing, pharmaceutical  packaging  and
high  visual labelling which, with API's unique laminates, are used to  combat
product counterfeiting.

Chromagen  has  established  a  worldwide  client  base,  which  utilises  its
holographic work for product protection and authentication, many of which  are
multinational household names.

Following  the acquisition, the management of Chromagen will be  staying  with
API  and  working  to exploit opportunities within the Group in  applying  new
holographic design and origination to its products.  New products for API  are
expected  to  follow  later  in  the  year  utilising  Chromagen's  innovative
diffraction patterns.

Commenting  on  the  acquisition, Michael Smith, API's Group  Chief  Executive
said:

'We  indicated  at our preliminary results in December that we  were  keen  to
develop  our  security and brand authentication products, where  we  see  good
opportunities for growth. Chromagen complements this development programme and
is  an  important acquisition to the Group in terms of developing  our  design
capabilities.

'Chromagen fills the gap in our holographic portfolio and we expect to use its
design   and  origination  know  how  in  our  current  security   and   brand
authentication products.  We also anticipate launching new products during the
year  into  these  rapidly growing markets where the global  cost  of  product
counterfeiting,  retail theft and related areas has been estimated  to  be  as
high as £300 billion.'



Enquiries:

Michael Smith, Group Chief Executive
API Group plc                           Tel: [phone]

Tim Spratt / Tania Wild
Financial Dynamics                      Tel: [phone]