Re Contract

NWF Group PLC
29 July 2004


Embargoed until: 07.30 29 July 2004


                                  NWF GROUP PLC
                              HP Foods Ltd Contract
                               New Warehouse Lease
                                        

NWF Group plc ('NWF Group' or the 'Company'), the diversified sales and
distribution business, is pleased to announce that its distribution division,
Boughey Distribution Ltd ('Boughey'), has entered into a two year contract with
HP Foods Ltd ('HP Foods') to undertake the warehousing and distribution of HP
Foods' products into the grocery retail sector. The work will include trunking
product from HP Foods' factories in the Midlands to a new warehouse facility in
Deeside and national deliveries into the retail sector, integrating with traffic
from Boughey's other two nearby sites at Wardle and Winsford.

Boughey has entered into a 15 year lease on a warehouse facility at Deeside,
which has a capacity for 19,500 pallets. The lease has a break clause at 5
years.

It is anticipated that the HP Foods contract will utilise approximately 50% of
the site immediately and the Board anticipate that the remaining capacity will
be fully utilised from new and existing Boughey customers by early 2005. This
new warehouse facility will increase Boughey's capacity by over 30 per cent to
approximately 73,000 pallets.

Mike Guest Boughey's Managing Director commented: 'HP Foods is a national brand
and one with which we are delighted to be working. We have built a good
relationship over the last two years with HP and we are now looking forward to
building upon this on a larger platform. The fit of the HP business with our
other ambient grocery business is excellent and future new business that is
earmarked for the Deeside operation will further enhance our consolidation.'

Dave Hall Operations Director at HP Foods commented: 'We have been working with
Boughey for two years on a small part of our retail business. We have been
pleased with how they operate and because they focus on the ambient grocery
market their knowledge and experience in this area is considerable. We are
looking forward to developing a strong relationship with Boughey over the coming
years and ensuring our service offering continues to be of the highest quality.'


Enquiries:

NWF Group plc                                                 01829 260260
Graham Scott, Chief Executive
Mike Guest, Managing Director Boughey Distribution Ltd

Tavistock Communications                                      020 7920 3150
John West
Claire Melly


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