Offer now Mandatory

GPG (UK) Holdings PLC
10 March 2003


Avenue Acquisition plc
10 March, 2003

Not for release, publication or distribution in or into the United States,
Canada, Australia or Japan.

Coats plc

Recommended cash offer by Strand Partners on behalf of Avenue Acquisition for
Coats plc

OFFER NOW MANDATORY

Avenue Acquisition announces that, following the market purchase today of
12,160,000 Coats Shares at 58.5 pence per Coats Share, the recommended cash
offer by Strand Partners on behalf of Avenue Acquisition for Coats, announced on
6 March, 2003, now constitutes a mandatory offer under the provisions of Rule 9
of The City Code on Takeovers and Mergers.

As a result, the only condition to the Coats Share Offer is now that Avenue
Acquisition must receive valid acceptances in respect of Coats Shares which,
together with Coats Shares acquired or agreed to be acquired before or during
the Coats Share Offer, will result in Avenue Acquisition (and any person acting
in concert with it) holding Coats Shares carrying more than 50.0 per cent. of
voting rights exercisable at general meetings of Coats.

Avenue Acquisition (and persons acting in concert with it) now holds, or has
control over, 277,259,152 Coats Shares, representing 39.16 per cent. of the
entire issued ordinary share capital of Coats.

Strand Partners is satisfied that sufficient cash resources are available to
Avenue Acquisition to satisfy full acceptance of the Offers.

The Offer Document will be despatched to Coats shareholders shortly. Terms
defined in the announcement dated 6 March, 2003 have the same meanings when used
herein unless the context requires otherwise.


Enquiries:

Avenue Acquisition plc                                             Tel: [phone]
Mark Butcher, Director
Ross Burney
Strand Partners Limited                                            Tel: [phone]
(Financial Adviser to Avenue Acquisition)
Simon Raggett
Warren Pearce
Weber Shandwick Square Mile                                        Tel: [phone]
(Public Relations Adviser to Avenue Acquisition)
Kevin Smith
Josh Royston

This Announcement does not constitute an offer or an invitation to acquire any securities.


Strand Partners, which is regulated in the United Kingdom by the Financial
Services Authority, is acting for Avenue Acquisition and no one else in
connection with the Offers and will not be responsible to anyone other than
Avenue Acquisition for providing the protections afforded to clients of Strand
Partners nor for giving advice in relation to the Offers.

The Avenue Acquisition Directors, whose names appear in paragraph 9 of Part 2 of
the announcement of the Offers dated 6 March, 2003, accept responsibility for
the information contained in this announcement. To the best of the knowledge and
belief of the Avenue Acquisition Directors (who have taken all reasonable care
to ensure that such is the case), the information contained in this announcement
is in accordance with the facts and does not omit anything likely to affect the
import of such information.

The Offers are not being made directly or indirectly in or into the United
States, Canada, Japan or Australia.  Accordingly, copies of this announcement
are not being, and must not be, mailed or otherwise distributed or sent in or
into or from the United States, Canada, Japan or Australia. Custodians, nominees
and trustees should observe these restrictions and must not distribute, send or
otherwise forward this announcement in, into or from the United States, Canada,
Japan or Australia. However, custodians, nominees and trustees who are not US
Persons but who hold Coats Shares or Coats Senior Convertible Bonds on behalf of
or for the account of US Persons who are able to satisfy Avenue Acquisition that
they are accredited investors (as defined in Regulation D under the US
Securities Act), may be entitled to accept the Offers from outside the United
States.

END


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