2006 Capitalisation Issue

Guinness Peat Group PLC
30 June 2006

                            GUINNESS PEAT GROUP plc


                              COMPANY ANNOUNCEMENT


                           2006 CAPITALISATION ISSUE






Guinness Peat Group plc ("GPG") announces that at 5pm on Friday 30 June 2006 it
allotted 104,049,127 Ordinary shares of 5p each in respect of its 2006
Capitalisation Issue.  These will be issued on Monday 3 July to its shareholders
on the UK, Australian and New Zealand share registers.  Of this number
22,244,084 shares will initially be registered on the Australian register in the
form of CDIs.



Following the allotment in respect of the 2006 Capitalisation Issue GPG will
have 1,144,684,453 shares in issue.








Richard Russell
Company Secretary
30 June 2006








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