Offer Update

Guinness Peat Group PLC
29 September 2000

                                                       
                 Guinness Peat Group plc
                            
 Recommended Cash Offer Facility for Staveley Industries
                           plc

Guinness  Peat Group plc ('GPG') announces  that,  as  at
3.00 p.m. on 28 September 2000, following the closure  of
the  Basic Offer, GPG owned or controlled or had received
valid  acceptances pursuant to the Offer for a  total  of
97,604,105  Staveley  Shares  representing  approximately
83.9  per  cent.  of  Staveley's  issued  ordinary  share
capital  (including the 33,774,700 Staveley Shares  owned
by  GPG  prior  to the announcement of the  Offer).   The
Alternative will remain open for acceptance until further
notice.

Staveley  Shareholders  should  be  aware  that,  as  the
percentage of Staveley Shares in the hands of the  public
has now fallen to significantly below 25 per cent., it is
likely  that the listing of Staveley Shares will  in  due
course be cancelled pursuant to the listing rules of  the
UK Listing Authority.

Staveley Shareholders who have not yet accepted the Offer
and who wish to do so should complete and return the Form
of  Acceptance by post or by hand as soon as possible  to
Computershare  Services  PLC  at  P.O.   Box   859,   The
Pavilions,  Bridgwater Road, Bristol BS99 1XZ or  (during
normal  business  hours) by hand  only  to  Computershare
Services  PLC at 7th Floor, Jupiter House, Triton  Court,
14 Finsbury Square, London EC2A 1BR.


Enquiries:

GPG
Blake Nixon         020 7236 0336

Deloitte & Touche Corporate Finance
Robin  Binks        020 7303 6720

Square Mile Communications Limited
Kevin  Smith        020 7601 1000


Unless  the  context otherwise requires, the  definitions
set  out  in  the  offer document dated  23  August  2000
relating to the Offer apply in this announcement.

Deloitte  &  Touche of Stonecutter Court,  1  Stonecutter
Street, London EC4A 4TR is authorised by the Institute of
Chartered  Accountants in England and Wales to  carry  on
investment   business.   Deloitte  &   Touche   Corporate
Finance,  a  division  of Deloitte &  Touche,  is  acting
exclusively for GPG and GPG Acquisitions No. 3 plc and no
one  else  in connection with the Offer and will  not  be
responsible to anyone other than GPG and GPG Acquisitions
No.  3  plc  for  providing the protections  afforded  to
clients  of Deloitte & Touche Corporate Finance  nor  for
providing advice in relation to the Offer.

Deloitte  &  Touche Corporate Finance has  approved  this
announcement  as an investment advertisement  solely  for
the  purpose of section 57 of the Financial Services  Act
1986.