Offer Update

Guinness Peat Group PLC
27 September 2000


              Guinness Peat Group plc

 Recommended Cash Offer Facility for Staveley Industries plc

    Offer declared unconditional in all respects

Guinness Peat Group plc ('GPG') announces that all of the
outstanding conditions of the Offer made by Deloitte &
Touche Corporate Finance on behalf of GPG Acquisitions
No. 3 plc ('GPG Acquisitions') for Staveley Industries
plc ('Staveley') have been satisfied or waived and that
the Offer is hereby declared unconditional in all
respects.

THE BASIC OFFER WILL CLOSE AT 3.00 P.M. TOMORROW.  THE
ALTERNATIVE WILL REMAIN OPEN UNTIL FURTHER NOTICE.

Staveley Shareholders validly accepting the Basic Offer
will receive 34.4p per Staveley Share from Staveley on 29
September 2000 and this amount will be set off against
the total consideration due to them from GPG under the
Basic Offer.  The amount of 25.6p per Staveley Share,
representing payment of the remaining amount due to
accepting Staveley Shareholders under the Basic Offer and
being the full amount due to accepting Staveley
Shareholders under the Alternative, is expected to be
despatched either (a) on or before 11 October 2000, in
respect of acceptances received, valid and complete in
all respects, by close of business on 27 September 2000,
or (b) within 14 days of the date of receipt of further
acceptances which are valid and complete in all respects
while the Offer remains open for acceptance.

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
Trevor Beyer                  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 and no one else
in connection with the Offer and will not be responsible
to anyone other than GPG and GPG Acquisitions 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.