Interim Results

UNITED OVERSEAS GROUP PLC
7 September 1999


                           UNITED OVERSEAS GROUP PLC
             Interim results for the six months ended 30 June 1999

United Overseas Group plc ('UOG'), Europe's largest specialist distributor  of
excess  inventories  of  branded consumer products  to  retail  and  wholesale
customers,  announces interim results for the six months ended 30  June  1999.
UOG's  range includes toys, games, toiletries and cosmetics, household  goods,
sports  and  leisure wear. The results were produced against a  background  of
difficult trading conditions in the UK retail market.

Key points (comparatives are 6 month figures to 30 June 1998):
* Turnover £57.4m (1998: £47.1m)
* Pre-tax loss £0.3m (1998: £3.1m profit), after charging £0.3m goodwill    
  amortisation (1998: nil)
* Business of Toy Wizards combined with that of United Overseas Limited
* Stocks successfully reduced
* Dutch subsidiary acquired in Autumn 1998, contributed satisfactory profits
* The Directors are not declaring an interim dividend (1998: 0.43p)
* Completion in July of Sale and Leaseback of new 21,000 sq metre European
  Distribution Centre in Holland has benefited gearing
* Facility will be focal point of UOG's European development
* Phil Green appointed to Board from Woolworths plc in August - brings
  retailing expertise to Group
* Chairman to step down during next few months

Commenting on the results, Chairman Norman Riddell said:
'In  an  environment that has seen downward pressures on sales volumes in  the
UK,  the  Group intensified its actions to successfully reduce stock holdings,
which  by  the  half year were significantly below the 1998 year  end  levels.
Notwithstanding this, the operating environment in the UK, as  predicted,  has
remained very difficult.'

Regarding the outlook for the remainder of 1999, he added:
'The  Board  anticipates that the testing trading conditions in  the  UK  will
continue during the rest of the year and in response to the challenges we face
the Group will undergo further changes and improvements to secure a successful
future. These developments will enable the Group, in association with its  key
business  partners to participate fully in the anticipated  global  growth  of
discount retailing of branded consumer goods.'

Enquiries:
Norman Riddell, Chairman
Jeffrey Curtiss, Chief Executive
Terry Balkham, Finance Director, United Overseas Group plc 
                                  today only 0171 786 9600
                                  thereafter 01733 362 300
Peter Binns
Paul Vann, Binns & Co PR Limited             0171 786 9600


Issued by Binns & Co PR Ltd             Tel: [phone]




Chairman's Statement

The  Group has previously indicated that trading conditions in the first  half
of the year have been particularly difficult in the UK and in order to address
the  challenges of the UK market place the Group has combined the business  of
Toy  Wizards with that of United Overseas Limited.  In an environment that has
seen downward pressures on sales volumes in the UK, the Group intensified  its
actions  to  successfully reduce stock holdings, which by the half  year  were
significantly  below  the  1998 year end levels.   Notwithstanding  this,  the
operating environment in the UK, as predicted, has remained very difficult and
it  is disappointing to report that the established UK businesses of the Group
traded  at  a  loss.  We are determined to continue to address the  structural
challenges   of  improving  operating  efficiencies  and  believe   that   the
initiatives which are being implemented will ultimately prove rewarding.

We  remain pleased with the progress of the integration of Intertrading  which
contributed  a satisfactory profit.  The completion of the Sale and  Leaseback
of  the European Distribution Centre at Moerdijk, the Netherlands, took  place
on  14  July  1999.   Relocation  of  the Intertrading  office,  showroom  and
warehousing  activities to the new premises was successfully concluded  during
August  and  the  facility will now become the focal  point  for  the  Group's
European  development.  The repayment of the associated loan in  July  reduced
short-term  borrowings by £5.8 million (NLG 19.5 million) with  a  significant
consequential benefit to the Group's gearing.

The  Directors are committed to ensure that the Group's resources are  focused
on  developing a successful and efficient business.  In the circumstances  the
Directors do not propose to pay an interim dividend.

The  Board  anticipates that the testing trading conditions  in  the  UK  will
continue during the rest of the year and in response to the challenges we face
the Group will undergo further changes and improvements to secure a successful
future.  These developments will enable the Group, in association with its key
business  partners to participate fully in the anticipated  global  growth  of
discount retailing of branded consumer goods.

It  is  with  great pleasure that we welcome Phil Green to  the  Board.   Phil
joined us from Woolworths plc on 2 August 1999.  His primary responsibility is
as  Managing  Director  of  United  Overseas Limited,  the  Group's  principal
operating company in the UK.  In addition, he will assist with the development
of our businesses internationally.  Phil's extensive background of trading and
merchandising within a major retailing group and his specialist  knowledge  of
the  toy  and  other relevant sectors will be of great benefit to  the  United
Overseas Group.

When  I  joined the Board of your Company I indicated to my colleagues that  I
would not remain indefinitely as your Chairman, and I have now decided to step
down.   I  have agreed with my colleagues that I will leave your Board  within
the  next  few  months, during which time the Board is looking to  appoint  my
successor.  I wish the Company and the Board continued success in building and
developing the Group's fortunes.


Norman Riddell
Chairman
6 September 1999




Consolidated Profit and Loss Account
For the period ended 30 June 1999

                                 6 months      6 months     12 months
                                    ended         ended         ended
                                 30/06/99      30/06/98      31/12/98
                              (unaudited)   (unaudited)     (audited)
                        Note        £'000         £'000         £'000
                              -----------   -----------   -----------
                           
Turnover                  2        57,406        47,058       107,603
Cost of sales                     (44,840)      (34,495)      (82,972)
                              -----------   -----------   -----------
Gross profit                       12,566        12,563        24,631
Distribution costs                 (5,104)       (3,586)       (7,541)
Administrative costs               (6,544)       (4,988)      (10,968)
Other operating income                163             4            83
Amortisation of goodwill  3          (252)            -          (166)
                              -----------   -----------   -----------
Operating profit                      829         3,993         6,039
Net interest payable               (1,171)         (942)       (2,309)
                              -----------   -----------   -----------
(Loss)/profit on                                                     
ordinary activities before           
taxation                             (342)        3,051         3,730
Taxation                  4          (158)       (1,005)       (1,482)
                              -----------   -----------   -----------
(Loss)/profit on ordinary 
activities after taxation            (500)        2,046         2,248
Minority interests                   (118)          (84)         (126)
                              -----------   -----------   -----------
(Loss)/profit attributable 
to shareholders                      (618)        1,962         2,122
Dividends                 5             -          (533)         (715)
                              -----------   -----------   -----------
Retained (loss)/profit                                               
for the period                       (618)        1,429         1,407
                                =========     =========     =========
Earnings per share        6                                          
  - Basic                         (0.44)p         1.58p         1.64p
  - Fully diluted                 (0.44)p         1.58p         1.64p
  - Adjusted basic                (0.26)p         1.58p         1.77p
                              -----------   -----------   -----------
Dividends per share       5             -         0.43p         0.56p
                                =========     =========     =========



Consolidated Balance Sheet
At 30 June 1999



                              At 30/06/99   At 30/06/98   At 31/12/98
                              (unaudited)   (unaudited)     (audited)
                       Note         £'000         £'000         £'000
                          
                              -----------   -----------   -----------
Fixed assets                                                         
Intangible assets                   9,698            90         9,939
Tangible assets                     8,724         2,167         6,427
Investments                           250             -           200
                              -----------   -----------   -----------
                                   18,672         2,257        16,566
                                =========     =========     =========
Current assets                                                       
Stocks                             38,735        40,301        42,604
Debtors                            29,486        25,317        27,185
Cash at bank and in hand            1,066           978         1,356
                              -----------   -----------   -----------
                                   69,287        66,596        71,145
                                                                     
Creditors: amounts                                                   
falling due within one year      (47, 879)      (41,418)      (42,632)
                              -----------   -----------   -----------
Net current assets                 21,408        25,178        28,513
                              -----------   -----------   -----------
Total assets less                                                    
current liabilities                40,080        27,435        45,079
Creditors: amounts                                                   
falling due after more                                               
than one year                     (2,386)         (357)       (6,676)
                              -----------   -----------   -----------
Net assets                         37,694        27,078        38,403
                                =========     =========     =========
                                                                     
Capital and reserves                                                 
Called up share capital            13,990        12,403        13,990
Share premium account              55,207        45,763        55,207
Share capital to be issued              -         1,000             -
Profit and loss account    3      (31,832)      (32,257)      (31,005)
                              -----------   -----------   -----------
Equity shareholders' funds         37,365        26,909        38,192
Equity minority interests             329           169           211
                              -----------   -----------   -----------
                                   37,694        27,078        38,403
                                =========     =========     =========




Consolidated Cash Flow Statement
For the period ended 30 June 1999

                            6 months      6 months     12 months
                               ended         ended         ended
                            30/06/99      30/06/98      31/12/98
                         (unaudited)   (unaudited)     (audited)
                               £'000         £'000         £'000
                         -----------   -----------   -----------
Net cash outflow)/inflow 
from operating activities     (1,671)      (8,634)         4,906
                         -----------   -----------   -----------
Returns on investments                                          
and servicing of finance
Interest received                 16            18            54
Interest paid and                                               
similar charges               (1,200)         (936)       (2,273)
Interest element of                                             
hire purchase and               
finance leases                   (26)          (22)          (51)
                         -----------   -----------   -----------
Net cash outflow from                                           
returns on investments                                          
and servicing of finance      (1,210)         (940)       (2,270)
                         -----------   -----------   -----------
Taxation                                                        
UK corporation tax                                              
received/(paid)                  871       (1,080)       (2,376)
Overseas taxation                                               
received/(paid)                  398         (445)         (838)
                         -----------   -----------   -----------
Net cash inflow/(outflow) 
from taxation                  1,269       (1,525)       (3,214)
                         -----------   -----------   -----------
Capital expenditure and 
financial investment
Purchase of intangible                                          
fixed assets                       -          (23)          (23)
Purchase of tangible                                            
fixed assets                 (2,982)         (176)       (3,150)
Purchase of fixed                                               
asset investments               (50)             -         (200)
Sale of tangible fixed            
assets                           47             8            35
                         -----------   -----------   -----------
Net cash outflow from                                           
capital expenditure                                             
and financial investment     (2,985)         (191)       (3,338)
                         -----------   -----------   -----------
Acquisitions and disposals
Purchase of subsidiary                                          
undertakings                    (22)             -       (4,459)
Net cash acquired with                                          
subsidiary undertakings           -              -       (2,371)
                         -----------   -----------   -----------
Net cash outflow from                                           
acquisitions and disposals      (22)             -       (6,830)
                         -----------   -----------   -----------
Equity dividends paid          (182)         (943)       (1,476)
                         -----------   -----------   -----------
Cash outflow before                                             
use of liquid resources                                                  
and financing                (4,801)      (12,233)      (12,222)
                         -----------   -----------   -----------
Financing                                                       
Expenses paid in                                                
connection with share issues       -             -         (715)
Capital element of                                              
finance lease rentals          (214)         (264)         (502)
New short term finance         1,776             -         7,428
                         -----------   -----------   -----------
Net cash inflow/(outflow)                                                     
from financing                 1,562         (264)         6,211
                         -----------   -----------   -----------
Decrease in cash in                                             
the period                   (3,239)      (12,497)       (6,011)
                           =========     =========     =========



Reconciliation of Operating Profit to Net Cash Flow from Operating Activities
For the period ended 30 June 1999


                            6 months      6 months     12 months
                               ended         ended         ended
                            30/06/99      30/06/98      31/12/98
                         (unaudited)   (unaudited)     (audited)
                               £'000         £'000         £'000
                         -----------   -----------   -----------
Operating profit                 829         3,993         6,039
Depreciation of fixed assets     380           271           637
Amortisation of trade marks       11             8            15
Amortisation of goodwill         252             -           166
Profit on sale of                                               
tangible fixed assets            (3)             -           (2)
Decrease/(increase)in stocks   3,869       (3,312)         2,550
Increase in debtors          (2,828)       (4,397)       (1,391)
Decrease in creditors        (4,161)       (5,134)       (2,951)
Profit on exchange in                                           
respect of foreign            
undertakings                    (20)          (63)         (157)
                         -----------   -----------   -----------
Net (outflow)/inflow                                            
from operating activities    (1,671)       (8,634)         4,906
                           =========     =========     =========

Reconciliation of Net Cash Flow to Movement in Net Debt
For the period ended 30 June 1999


                            6 months      6 months     12 months
                               ended         ended         ended
                            30/06/99      30/06/98      31/12/98
                         (unaudited)   (unaudited)     (audited)
                               £'000         £'000         £'000
                         -----------   -----------   -----------
Decrease in cash in                                             
the period                   (3,239)      (12,497)       (6,011)
Cash (inflow)/outflow                                           
from decrease in debt                                           
and finance leasing          (1,562)           264       (6,926)
                         -----------   -----------   -----------
Change in net funds                                             
resulting from cash flows    (4,801)      (12,233)      (12,937)
Loans and finance                                               
leases acquired with     
subsidiaries                       -             -         (898)
New finance leases              (21)         (371)         (693)
                         -----------   -----------   -----------
Movement in net debt         (4,822)      (12,604)      (14,528)
                           =========     =========     =========

Opening net debt            (28,050)      (13,522)      (13,522)
Movement in net debt         (4,822)      (12,604)      (14,528)
                         -----------   -----------   -----------
Closing net debt            (32,872)      (26,126)      (28,050)
                           =========     =========     =========


Notes

1    NATURE OF THE FINANCIAL INFORMATION
The  Company prepares statutory accounts annually to 31 December.   These  are
the interim accounts covering the six months ended 30 June 1999.

The  results  for  the six months ended 30 June 1998 and  the  year  ended  31
December  1998,  are  extracted from the previous  year's  interim  and  final
accounts  respectively.  The analysis between expenses has been  restated  for
the  six  months ended 30 June 1998, in line with the analysis  given  in  the
final accounts, as in the opinion of the Directors, this is more appropriate.

The  results for the six months ended 30 June 1999 and 1998 are unaudited, and
have  been prepared in accordance with the accounting policies set out in  the
Company's annual report.

The financial information set out above does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985.  The results  for
the  year ended 31 December 1998 are an abridged version of the full statutory
accounts that have an unqualified audit report and have been delivered to  the
Registrar of Companies.

2    TURNOVER AND PROFIT BEFORE TAX

                            6 months      6 months     12 months
                               ended         ended         ended
                            30/06/99      30/06/98      31/12/98
                         (unaudited)   (unaudited)     (audited)
                               £'000         £'000         £'000
                         -----------   -----------   -----------
Turnover by                                                     
destination:
United Kingdom                26,686        27,491        58,494
Rest of Europe                21,946        10,409        31,005
North America                  8,774         9,158        18,104
                         -----------   -----------   -----------
                              57,406        47,058       107,603
                           =========     =========     =========
By origin:                                                      
United Kingdom                28,671        33,020        69,300
Rest of Europe                20,576         5,962        21,945
North America                  8,159         8,076        16,358
                         -----------   -----------   -----------
                              57,406        47,058       107,603
                           =========     =========     =========
(Loss)/profit before                                            
tax by origin:
United Kingdom               (1,223)         2,273         2,629
Rest of Europe                   845           244           610
North America                     36           534           491
                         -----------   -----------   -----------
                               (342)         3,051         3,730
                           =========     =========     =========

Notes

3    PROFIT AND LOSS ACCOUNT
In  accordance  with Financial Reporting Standard 10 Goodwill  and  Intangible
Assets,  goodwill  arising from acquisitions before 1 January  1998  has  been
written  off  to  reserves.  For acquisitions after this  date,  the  goodwill
arising  has  been capitalised and is being amortised through the  profit  and
loss account over the Directors' estimate of their useful economic life.

4    TAXATION
The  taxation charge for the six months to 30 June 1999 and 1998 is  based  on
the anticipated tax position for the full year.

5    DIVIDENDS
No  interim  dividend is proposed for the six months ended 30 June 1999  (1998
interim dividend of 0.43 pence per ordinary share).

6    EARNINGS PER SHARE
Basic  earnings per share for the six months ended 30 June 1999 is  calculated
by  dividing  the  loss  on ordinary activities after  taxation  and  minority
interests  of  £618,000  by 139,496,709 (30 June 1998:  profit  £1,962,000  by
124,032,000;  31  December 1998: profit £2,122,000 by 129,199,267)  being  the
weighted  average number of ordinary shares of 10 pence each in  issue  during
the  period  after taking account of the purchases of ordinary shares  by  the
Employee Share Ownership Plan (ESOP).

The adjusted basic earnings per share for the six months ended 30 June 1999 is
calculated  by  dividing the loss on ordinary activities  after  taxation  and
minority  interests  and  before  amortisation  of  goodwill  of  £366,000  by
139,496,709 (30 June 1998: profit £1,962,000 by 124,032,000; 31 December 1998:
profit  £2,288,000  by  129,199,267) being  the  weighted  average  number  of
ordinary shares of 10 pence in issue during the period after taking account of
the purchases of ordinary shares by the ESOP.

No  dilution arises as a result of the share options in issue, as the value at
which they were granted is in excess of both the market price at 30 June  1999
and  the  average  market price for the six months, and therefore  no  options
would  be  exercised.   Accordingly the fully diluted earnings  per  share  is
identical to the basic earnings per share as stated above.

7   YEAR 2000
The  Steering  Committee,  which reports to the Board,  is  co-ordinating  the
necessary  work  throughout the Group's operations to address  the  Year  2000
issues.  This work is predominantly complete, however given the complexity  of
the  issue,  it  is not possible for any organisation to be  certain  that  no
problems  relating to Year 2000 issues will occur.  The Company is  developing
contingency  plans to deal promptly with any significant issues  that  it  can
identify.

In  accordance with the Urgent Issues Task Force Abstract number 20, the costs
relating to Year 2000 compliance have been written off to the Profit and  Loss
Accounts of the individual companies.