Sale of Tate & Lyle Bundaberg

Tate & Lyle PLC
8 June 2000


   Tate & Lyle PLC - Sale of Tate & Lyle Bundaberg and associated businesses

Tate & Lyle PLC ('Tate & Lyle' or the 'Group') announces that it has agreed to
sell  its  wholly-owned  Australian sugar  business,  Tate  &  Lyle  Bundaberg
('Bundaberg'), and associated businesses, to Belgium-based Societe Financiere
des  Sucres  s.a.  ('Finasucre').  The consideration is  A$425  million  (£162
million),  debt  free, subject to adjustments.  Of this,  A$144  million  (£55
million)  will be paid in cash at completion.  The balance is being  satisfied
by  a mixture of the assumption and repayment of debt and accrued interest  by
Finasucre  of  A$141  million (£54 million), subject to  adjustment,  and  the
payment of pre-completion dividends.

Headquartered  in  Brisbane, Bundaberg is the third  largest  cane  miller  in
Australia, operating from seven mills, and is also a significant sugar refiner
and a major cane grower.

Included in the sale are: Bundaberg's raw sugar and sugar refining business; a
50%  interest in Bundaberg Rum, which is operated in partnership  with  United
Distillers and Vintners (Australia) Limited (a subsidiary of Diageo plc);  and
Bundaberg's engineering business, Bundaberg Foundry Engineering Limited.

The  value  at 25 March 2000 of net assets to be sold was A$342 million  (£130
million).  This figure excludes the A$141 million (£54 million) of debt within
Bundaberg  which  will  be  assumed  by  Finasucre  and  forms  part  of   the
consideration.

Profit before tax attributable to these net assets (including debt) in the  12
months to March 2000 was £2 million.

Goodwill arising on the acquisition of Bundaberg was written off to Group
reserves in 1991.  £12 million of this goodwill has now been written back and
taken as an exceptional loss in the Group profit and loss account for the 18
months to March 2000.   The excess of the consideration over net asset value
will enhance Tate & Lyle shareholders' funds on completion of the transaction.

The  sale  of  Bundaberg is conditional on approval (or  no  objections  being
received)  from  the Australian Treasurer under the Foreign  Acquisitions  and
Takeover  Act 1975 (Commonwealth of Australia). This condition is expected  to
be met within one month.

Proceeds of the sale will be used to reduce Group debt.

Finasucre has also made an offer to acquire the Group's interest in Vietnamese
cane sugar producer, Nghe An Tate & Lyle Sugar Company ('NAT&L').  Tate & Lyle
will  review  this offer with its partners and the financiers to  NAT&L.   The
offer  is subject to the achievement by NAT&L of throughput targets which  are
expected to take up to three years to attain.

Finasucre  is a privately-owned holding company operating beet sugar factories
and  producing  lactic acid in Belgium.  The company also owns  a  cane  sugar
estate in Africa.

Larry Pillard, Tate & Lyle Chief Executive said:

'The  sale of Bundaberg is an important step in enhancing the focus of Tate  &
Lyle  on activities that add value to carbohydrates.  Along with other  recent
disposals  it  underlines  our  determination  to  realise  value  for   Group
shareholders.

'When  Tate  &  Lyle  bought Bundaberg in 1991, it was  expected  that  future
deregulation  of  the  Queensland  sugar  industry  would  facilitate   fuller
integration of Bundaberg's operations with other Group businesses.

'However, the recently introduced Queensland Sugar Industry Act 1999 continues
to  require that all raw sugar produced in Queensland is purchased and sold by
a central organisation.  It therefore seems unlikely that the enhanced returns
and  value added benefits available from vertical integration would be  easily
accessible in the near future.

'Consequently we have decided that this is an appropriate opportunity to  sell
Bundaberg.  In doing so we acknowledge the valuable support and commitment  of
Bundaberg's management team and employees to Tate & Lyle since 1991.'

Olivier  and  Paul  Lippens, Managing Director and Director, respectively,  of
Finasucre, said:

'The acquisition of Bundaberg is consistent with our objective of investing in
high  quality  assets  in areas of strategic importance  in  the  world  sugar
market.   This  is  a  long-term investment for us  and  we  look  forward  to
supporting  Bundaberg's management and employees in the future development  of
the business.'


Enquiries:

For Tate & Lyle:

Charles King       020-7626-6525
Chris Fox          020-7626-6525 (Press)

For Finasucre:

Olivier Lippens, Managing Director (00)-32-75-71-83-59
Robert Fleming & Co. Limited (Financial Advisers to Finasucre)
Tom Lindsay         020-7638-5858
Andrew Brindley     020-7638-5858