Consolidation of Divisions

Macfarlane Group PLC
17 January 2001



Macfarlane Group today announces the consolidation of three Divisions. The
Labels, Packaging and Merchanting businesses have been combined into one
entity. This newly formed Packaging Division will primarily focus on offering
complete packaging solutions to its customers. The Division will offer a range
of services and products in addition to the products currently manufactured
within the Macfarlane Group. New marketing and sales channels will be
developed supported by improved logistics and delivery systems. E-commerce
initiatives currently underway will form an integral part of the forward
strategy.


Costs will be reduced as a consequence of this restructuring. Our estimate of
the costs and financial benefits will be disclosed at the time of our
preliminary announcement in March. For the year 2001, restructuring charges
and benefits are expected to be broadly neutral. Macfarlane Group will report
its year end results under this new Divisional framework.


Graham Casey, who has been with Macfarlane Group for over 20 years, has been
appointed as Managing Director of the newly formed Division. Macfarlane
Group's existing branding will remain unchanged. Macfarlane Group will now
comprise of two divisions, Plastics and Packaging. These two Divisions will
continue to provide a wide range of packaging products and services including
labels, protective packaging, plastics, warehousing, complete packaging
solutions and a wide range of other merchanted products.



Enquiries

Iain D Duffin          CEO, Macfarlane Group PLC      0141 333 9666

Press

Gordon Beattie     Beattie Media                    01698 787878