Hygena Packaging Sold to La Rochette for £37m

MFI Furniture Group PLC
15 December 1999



The Board of MFI Furniture Group Plc ('MFI' or ' the
Company') announces that yesterday contracts were
exchanged unconditionally between the Company and La
Rochette S.A for the sale of the entire share capital of
Hygena Packaging Limited ('Hypac'), a wholly owned
subsidiary of MFI to be completed on 4 January 2000.
Hypac is engaged in the manufacture of corrugated
packaging principally for the food industry.  Total
consideration under the terms of the sale will be
approximately £37m, payable on completion, satisfied as
to approximately £24m in cash and the balance in assumed
debt.  Total net assets of Hypac as at 24 April 1999,
the date of the last audited accounts, were £14.4m and
profit before tax was £3.3m.  The proceeds of the sale
will be used to provide greater financial stability upon
which the business can be further developed.

Approximately 20 per cent. of Hypac's turnover relates
to the sale of corrugated packaging to Hygena Limited, a
wholly owned subsidiary of MFI.  As part of the sale
Hygena Limited has entered into an agreement with Hypac
for the continued supply of such corrugated packaging on
similar terms to that which currently exist.
Commenting on the sale, Derek Hunt, Chairman of MFI
said:

'The disposal of Hypac continues the Board's disposal of
non-core assets designed to allow the Board to focus on
the objective of improving the performance of the core
business'.

Enquiries:

MFI Furniture Group Plc
John Hancock                              0181 913 5319
Michael Williamson
0181 913 5343

KPMG Corporate Finance
0171 311 1000 Neil Austin

Brunswick Group Limited
0171 404 5959 Susan Gilchrist
William Cullum