Re Contract

NWF Group PLC
06 January 2005


For immediate release: Thursday 6 January 2005


                                  NWF GROUP PLC

                      NEW CONTRACT FOR BOUGHEY DISTRIBUTION
                    PLANNING CONSENT RECEIVED FOR WARDLE SITE


NWF Group plc ('NWF'), the diversified sales and distribution business,
announces that its wholly owned subsidiary, Boughey Distribution Ltd, has won a
new contract with Patak's Food Ltd ('Patak's').

Boughey has been awarded a two-year contract with Patak's for storage and
distribution of their products based at the Boughey warehouse at Deeside,
Chester. As part of the agreement Boughey will brand a number of its trailers
with Patak's livery. Following this contract and the previously announced
agreement with HP Foods, the Warehouse at Deeside will be fully occupied by the
end of January.

NWF also announces that planning permission has been received for building
further warehouses at the Group's main site at Wardle, Cheshire. If fully
developed, the site at Wardle would increase its storage by some 80% from its
current 45,000 pallets to 82,500 pallets. Additionally the Group has leased
warehouses in Winsford (12,500 pallets) and at Deeside (19,000 pallets).

In the first half of 2005, NWF will undertake studies to determine whether, when
and how to make use of this option. Further announcements will be made as and
when appropriate.

Graham Scott, Chief Executive, NWF commented: 'Boughey has sophisticated stock
control systems which ensure correct rotation of ambient products and full
traceability from point of receipt to delivery. Goods are held on behalf of over
one hundred customers, both UK manufacturers and importers, and the products are
delivered nationally to the full range of supermarket, wholesale and speciality
outlets. Boughey is increasingly being recognised as a distribution firm of
choice as can be evidenced by the Patak's contract.'

He added: 'We are pleased to have received planning permission, which will
enable us, if we so choose, to develop our site at Wardle and significantly
increase our warehousing capacity. We will be assessing the various factors
associated with undertaking this development and will update shareholders in due
course.'

                                    - ends -

For further information please visit www.nwf.co.uk or contact:

Graham Scott, Chief Executive               John West/Claire Melly
NWF Group plc                               Tavistock Communications
Tel: [phone]                          Tel: [phone]



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