Holding in Company

Colefax Group PLC
23 August 2000

Letter to Colefax Group Plc
21 August 2000

Notification of Interest

In accordance with the provisions of Sections 198-202 of the Companies Act 1985,
we give notice that, as a result of a purchase of 230,000 ordinary shares
of 10p each in the relevant share capital of your company ('Shares') on 18th
August 2000, the following client of Friends Ivory & Sime Plc has a material
interest in the Shares shown below:-

Name of Client      No. of Shares        %         Name of Registered Holder

Discovery Trust        2,380,000         9.69       Direct Nominees Ltd.

This notification supersedes all previous notifications given by members of the
Friends Provident Group in relation to Shares for this client.

Letter from Friends Ivory & Sime