Disposal

Tate & Lyle PLC
26 July 2001

                                                                              
         Agreement for Sale of Domino Sugar signed by Tate & Lyle       
             

Tate & Lyle PLC ('Tate & Lyle') announces it has signed a conditional
agreement to sell Tate & Lyle North American Sugars Inc., trading as Domino
Sugar  ('Domino'), to an investment group led by Alfonso and J. Pepe Fanjul.
The sale agreement was signed on 26 July 2001 and is subject to, inter alia,
the purchaser completing the necessary financing arrangements and approval by
US competition authorities.

The consideration will be US$180 million (£127 million) (subject to closing
adjustments) plus a maximum conditional earnout of US$25 million (£18million)
payable over 4 years from date of signing. The earnout will principally be
calculated based on sugar and energy prices. Proceeds of the sale will be used
to reduce Group debt. Total consideration will not exceed US$205 million.

The sum of US$155 million (£109 million) will be paid in cash on the
completion date and the balance of US$25 million (£18 million) being an
interest bearing subordinated 10 year loan note issued by the purchaser. Part
of this will be redeemable in annual instalments commencing 42 months from the
completion date with the balance of US$11.7 million (£8.2 million) redeemable
120 months from the completion date. 

A write down of £227 million (which included £149 million of goodwill
previously written off to reserves) on the planned sale of Domino was included
in the results for the year ended 31 March 2001. Included in the sale are
Domino cane sugar refineries at Baltimore, Arabi (Chalmette, Louisiana), and
Brooklyn; and the Allen Sugar Company, a distributor in Cleveland. The value
at 31 March 2001 of Domino's net assets (after the write downs), adjusted to
reflect the terms of the transaction, was US$180million (£127 million). Losses
before interest attributable to these net assets in the 12 months to March
2001 amounted to US$25 million (£17 million).

Enquiries: 

Mark Robinson        020 7626 6525
Chris Fox (Press)    020 7626 6525 (office) or 0780 1808 553 (mobile)