Disposal

De La Rue PLC
18 May 2001



                      DE LA RUE DISPOSES OF SHAREHOLDING

                   IN ASSOCIATE COMPANY DE LA RUE GIORI SA

                        AND SETTLEMENT OF ARBITRATION


                          SALE OF DE LA RUE GIORI SA


De La Rue has today announced the sale of its 50% shareholding in De La Rue
Giori SA to Koenig & Bauer AG, the German manufacturer of printing presses.
Completion of the sale, which is expected to take place shortly, is
conditional upon certain conditions precedent being satisfied or waived.
Based in Lausanne, Switzerland, De La Rue Giori is a leading supplier and
distributor of printing presses for banknote production.

The cash consideration payable by Koenig & Bauer on closing is estimated at
CHF 50m (£20m).  The proceeds will be used for general corporate purposes.
In addition, Koenig & Bauer is simultaneously purchasing the other
shareholder's interest in De La Rue Giori SA so that on completion of the
acquisition it will own 100% of the shares.    De La Rue's share of the net
assets of De La Rue Giori was £5.5m, resulting in an exceptional pre-tax gain
for De La Rue of £14m (includes £0.5m for sale and other expenses).

De La Rue is selling its stake in the business as the Board believes De La Rue
Giori is no longer strategically important to the Group's operations.  In
addition, the Board feels that the business would be better served under
single ownership.  For the year ended 31 March 2000 De La Rue's share of De La
Rue Giori's profit before tax was CHF 8.25m; however, for the year ended 31
March 2001 it is estimated that there will be a small loss.


Ian Much, Chief Executive, De La Rue plc, commented:


'De La Rue Giori has been a good investment for the Group for many years but
its recent weak trading has shown us that the business would be better served
under single ownership.  Coupled with the settlement of the arbitration
proceedings, also announced today, the disposal of our shareholding in De La
Rue Giori for good value represents a very satisfactory outcome for
shareholders.'


Notes to editors

1.  De La Rue Giori SA is a 50:50 joint venture begun in 1965 by the two
    parties to design, produce and supply machinery and specialised equipment
    for printing banknotes.  Machinery is manufactured by Koenig & Bauer in
    Germany.

2.  The Koenig & Bauer Group is one of the world's largest manufacturers of
    printing presses.  It is a major supplier to the newspaper industry and
    also manufactures printing presses for the manufacture of banknotes.  The
    business had a turnover of e1.01bn in 2000 and its Group headquarters are
    based in Wurtzburg, Germany.  It employs over 6,850 people worldwide.
3.  De La Rue also has a shareholding of 12.5% in the voting shares of Koenig &
    Bauer with a book value of  £3.9m and a current market value as at 17th May
    2001 of £15.8m



18 May 2001



                          SETTLEMENT OF ARBITRATION

                      PROCEEDINGS BETWEEN DE LA RUE plc

                          AND THE OTHER SHAREHOLDER

                            OF DE LA RUE GIORI SA



De La Rue plc is a 50% shareholder in De La Rue Giori SA which is the leading
worldwide supplier of currency printing presses.  De La Rue is pleased to
announce today that it has reached agreement with M Roberto Giori, Chairman of
De La Rue Giori and Dynavest Holding & Cie SCA, the other shareholder, whereby
all claims and counterclaims, by each party against the other have been
settled, conditional upon completion of the disposal of De La Rue Giori to
Koenig & Bauer AG, details of which have been separately announced today.

The cost to De La Rue of the settlement including its legal fees will be in
the region of 5% of the original claim.


Notes to Editors:

1.  The claim concerned differences of opinion about the correct interpretation
    of certain provisions of a shareholders' agreement, in particular relating
    to the sharing of technology.  The shareholders' agreements were terminated
    on 1 February 2000.
2.  De La Rue Giori SA is a 50:50 joint venture to design, produce and supply
    printing machines and specialised equipment for printing banknotes.
3.  At the time of notification in November 1999 the claim in the arbitration
    proceedings against De La Rue was quantified at approximately £125 million.


18 May 2001


Enquiries:


Paul Hollingworth, Finance Director                 [phone]
Mark Fearon, Head of Corporate Affairs              [phone]
Crispin Wright (N M Rothschild & Sons)              [phone]
William Spurgin (N M Rothschild & Sons)             [phone]