Acquisition

De La Rue PLC
29 May 2002


                                 DE LA RUE PLC
 
                     DE LA RUE ACQUIRES NORTH AMERICAN
                         ELECTION SYSTEMS BUSINESS

De La Rue, the cash to secure transactions Group, has today announced the
acquisition of 85% of the share capital of Sequoia Voting Systems Inc. ('Sequoia
') one of the largest providers of voting equipment, software, ballot printing
and election services in the USA.  De La Rue has acquired the business from
Jefferson Smurfit Group plc, the international paper and packaging company who,
under the terms of the agreement, will retain 15% of share capital in the
business for a minimum of three years.  The consideration is US$ 23m, (£15.8m)
with a further payment of up to US$12m (£8.3m) dependant on certain performance
criteria being met, linked to agreed sales growth.  As at 31 December 2001,
Sequoia had estimated net shareholders' funds of $4.2m and the transaction will
be debt free and earnings neutral in the current year.

Sequoia offers hardware products in all major segments of the North American
elections market, including direct recording equipment and optical scan systems.
The company also supports its hardware with proprietary software systems
enabling municipalities to fully computerise their voter registration, ballot
creation and election tabulation processes.  With over 25,000 touch screen and
electronic voting machines in use across the USA, Sequoia is a leading supplier
of electronic voting machines in the country.  The company also operates a
printing business to support customer needs for paper ballots (punch cards and
optical scan) and information booklets.  Based in Oakland, CA Sequoia currently
employs 140 staff with a strong customer base in the West Coast and North East
of the USA.

De La Rue is acquiring the business as part of its strategy to invest in new
business opportunities and also to build on its position as a leading provider
of secure, government identity solutions.  De La Rue sees the election systems
market as having strong potential for growth with Sequoia well positioned to
take advantage as the market in the USA moves to increasingly automated voting
solutions.  In the short term, expectations are high that some US$3-US$5bn of
Federal funding for electoral reforms will accelerate the evolution of the
market to adopting highly secure automated election systems.  In addition, in
the medium term De La Rue sees opportunities for future revenues through
servicing and upgrading of the installed base of hardware and software and the
provision of technical and consultative services.  De La Rue also sees potential
for international expansion of the business through leveraging De La Rue's
strong relationships with the world's governments.

Based on the unaudited management accounts for the 12 months ended 31 December
2001 the business had a turnover of US$27.5m (£18.9m) and recorded an operating
loss of US$10m (£6.9m).  However 2001 was not a typical year due to the market
awaiting the outcome of Federal electoral reform funding initiatives. In 2000
the business made a profit of US$6m on sales of US$45m and will also be
profitable in the current year based on management projections.  During 2001,
the business also invested in developing its product range ahead of the
anticipated increase in demand and has subsequently won a number of contracts in
the current year incorporating its touch screen voting technology.

The business will continue to report to current Sequoia President, Peter
Cosgrove who will report directly to De La Rue Chief Executive, Ian Much.  This
is in order to take full advantage of the immediate growth opportunities in the
North American market and to explore the opportunities for further longer term
growth in services in the USA and international expansion.  For financial
reporting purposes the business will report within the Global Services division.
It will continue to use the Sequoia brand in the USA market where it has an
excellent reputation.

Commenting on the acquisition, Chief Executive, Ian Much said:

'The acquisition of Sequoia Voting Systems adds a new strategic dimension to De
La Rue's range of secure transaction solutions and complements our existing core
competencies in providing worldwide government identity solutions.  Sequoia is a
major player in the US election systems industry with an excellent range of
voting solutions with considerable knowledge and expertise of the North American
market.  Coupled with De La Rue's solid financial strength, strong international
government relationships and geographical reach, this acquisition allows us to
immediately capitalise on this growing market in the USA.  Looking to the medium
term it will also allow us to expand the business internationally in the future
using our combined strengths.'


                                     -ends-

For further information please contact:

Paul Hollingworth         Finance Director                [phone]
Mark Fearon               Head of Corporate Affairs       [phone]
Stephen Breslin           Brunswick                       [phone]



29 May 2002

Editors notes:

1.         2001 was a non-representative year in the election systems industry
following difficulties experienced in processing the November 2000 Presidential
election result in Florida.  Most counties and states put their election
procurement programmes on hold awaiting various voting reform initiatives and
state funding to upgrade voting systems to electronic systems which are now
being unveiled by the Federal government.  Furthermore Sequoia invested in new
equipment both in 2001 and the current financial year over and above normal R&D
expenditure.

2.         De La Rue is the world's largest commercial security printer and
papermaker, involved in the production of over 150 national currencies and a 
wide range of security documents such as travellers cheques and vouchers.  
Employing over 7,000 people in 31 countries, the company is also a leading 
provider of cash handling equipment and software solutions to banks and 
retailers worldwide, helping them to reduce the cost of handling cash.    
Applying our core brand values of security, integrity and trust, De La Rue is at
the centre of some of the most innovative and exciting developments in the 
secure products and services market.  We are pioneering new technologies from 
tailored solutions to protect the world's brands through to government identity 
solutions in secure passports and identity cards.


3.         An interview with CEO Ian Much can be viewed at the De La Rue
            (www.delarue.com) and Cantos websites (www.cantos.com)

                      This information is provided by RNS
            The company news service from the London Stock Exchange
                 TFIF