Offer Update

Guinness Peat Group PLC
23 May 2003

For immediate release

23 May 2003


THIS ANNOUNCEMENT IS BEING RELEASED BY THE GUINNESS PEAT GROUP FOR INFORMATION
ONLY IN UNITED KINGDOM, AUSTRALIA AND NEW ZEALAND

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


RECOMMENDED CASH OFFER AVENUE ACQUISITION PLC FOR COATS PLC


Avenue Acquisition plc, a UK unconsolidated joint venture company in which the
Guinness Peat Group holds an effective 50% voting interest, and Coats plc, today
released a joint announcement, the text of which is as follows:



          "CASH OFFER BY AVENUE ACQUISITION PLC ("AVENUE ACQUISITION")
                            FOR COATS PLC ("COATS")
                              "Offer Closing Date"


The Board of Avenue Acquisition announces that:

• the recommended cash offer for the ordinary shares of Coats; and

• the cash offer for Coats' senior convertible bonds due 2003,


made by Strand Partners on behalf of Avenue Acquisition, will, in accordance
with paragraph2(b) of the further terms of the Offers as set out in Part A of
Appendix I of the Offer Document, close on 9 June, 2003."


Richard Russell
Company Secretary
Guinness Peat Group plc


Enquiries

UK                  Mark Butcher            Tel: [phone]
Australasia         Dr Gary Weiss, Director Tel: [phone]


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