Further re Coats Group Ltd

Guinness Peat Group PLC
06 May 2004


For immediate release

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE
                   UNITED STATES, CANADA, AUSTRALIA OR JAPAN.

                                                                     6 May 2004

                            GUINNESS PEAT GROUP plc
             EXTENSION OF OFFER FOR A SHARES IN COATS GROUP LIMITED
                                        
On 14 April 2004 Guinness Peat Group plc ("GPG") announced the terms of an offer 
(the "Offer") to purchase those shares in its subsidiary company Coats Group 
Limited that it did not already own. The Offer was made by means of an offer 
document dated 14 April 2004 (the "Offer Document"). Definitions used in the 
Offer Document also apply in this announcement, unless the context otherwise 
requires.

GPG announces that, as at 5.00 pm London time on 5 May 2004 (being the first
closing date of the Offer), valid acceptances of the Offer had been received in
respect of a total of 54,101,643 A Shares, representing approximately 95.8 per
cent. of the issued A Shares. These figures include acceptances of the Offer
pursuant to letters of intent received from certain A Shareholders amounting (in
aggregate) to 37,696,176 A Shares, representing approximately 66.7 per cent. of
the issued A Shares. In addition, pursuant to the Acquisition Agreements GPG has
agreed to acquire a further 1,380,000 A Shares representing approximately 2.4
per cent. of the issued A Shares. These acquisitions are conditional on the
Offer becoming or being declared unconditional in all respects.

Taken together, as at 5.00 pm (London time) on 5 May 2004 GPG had received
acceptances of the Offer in respect of, or conditionally agreed to acquire, a
total of 55,481,643 A Shares, representing approximately 98.2 per cent. of the
issued A Shares.

GPG announces that it is extending the Offer for a period of 7 days. The Offer
will, therefore, remain open for acceptance until 5.00 pm London time on 12 May
2004.

A Shareholders who wish to accept the Offer and who have not already done so
should complete and sign the Form of Acceptance and return it as soon as
possible and, in any event, so that it is received by post or (during normal
business hours only) by hand at DLA, 3 Noble Street, London EC2V 7EE (for the
attention of Jonathan Richards) no later than 5.00 pm (London time) on 12 May
2004. The procedure for acceptance of the Offer is set out in Part 1 of the
Offer Document and in the Form of Acceptance.

Whilst the offer is now unconditional as to acceptances, not all of the
conditions to which the Offer was subject have yet been fulfilled. In
particular, confirmation of the filing of the Resolutions and consequential
changes to the articles of association of Coats Group Limited at the Registrar
of Companies in the British Virgin Islands has yet to be received. As a result,
admission of the New GPG Shares to the Official List and commencement of
dealings in those shares on the London Stock Exchange have been delayed.

During the 7-day extension period referred to above GPG's AGM will take place at
which its shareholders are being asked (inter alia) to approve the 2004
capitalisation issue. If approved, the GPG shares to be issued pursuant to the
Capitalisation Issue will be allotted at 5.00 pm on 24 May 2004, with dealings
commencing in those shares on the next day. Since under the terms of the Offer
settlement of the Consideration was not due to occur before 24 May 2004, it is
most practical for the New GPG Shares to be allotted on that day with their
admission to the Official List becoming effective and dealings in those shares
commencing on 25 May 2004. Accordingly, it is expected that the Offer will
become unconditional in all respects at that time, when the Consideration will
be settled in the manner set out in the Offer Document.

Enquiries:

Guinness Peat Group plc
Blake Nixon, Executive Director                                   020 7484 3370

Weber Shandwick Square Mile                                       020 7067 0700
Kevin Smith / Josh Royston

This announcement is not intended to and does not constitute, or form part of, 
an offer or an invitation to purchase or subscribe for any securities.

The Offer will not be made, directly or indirectly, in or into, or by the use 
of the mails or any means of 
instrumentality (including, without limitation, telephonically or 
electronically) of interstate or foreign commerce of, or any facilities of a 
national securities exchange of the United States, Canada, Australia or Japan. 
Accordingly, except as required by applicable law, copies of this announcement 
are not being, and must not be, mailed or otherwise forwarded, distributed or 
sent in, into or from the United States, Canada, Australia or Japan. Persons 
receiving this announcement (including without limitation nominees, 
trustees or custodians) must not forward, distribute or send it into the 
United States, Canada, Australia or Japan.

The availability of the Offer to Coats shareholders who are not resident in the 
United Kingdom may be affected by the laws of the relevant jurisdiction. Coats 
shareholders who are not resident in the United Kingdom should inform 
themselves about and observe any applicable requirements.

The New GPG Shares to be issued pursuant to the Offer have not been and will not
 be registered under any relevant securities laws of any state outside the 
United Kingdom or Australia and are not being offered, sold or delivered in 
connection with the Offer outside the United Kingdom, the British Virgin 
Islands, Jersey or Switzerland. Following the Offer, New GPG Shares should not 
be offered, sold, resold or delivered, directly or indirectly, outside the 
United Kingdom, Australia, New Zealand, the British Virgin Islands, Jersey or 
Switzerland.


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