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British Polythene (BPI)

British Polythene

Offer Update
British Polythene Industries PLC
21 September 2000

British Polythene Industries plc

The Board of British Polythene Industries plc ('BPI' or 'the Company') has met
to consider the announcement this morning by Macfarlane Group plc
('Macfarlane') of its intention to make an offer for the entire issued share
capital of the Company.

The Board, which is being advised by Greenhill & Co. International Limited
('Greenhill & Co.') unanimously considers that the hostile and unwelcome offer
of 250p per BPI share is wholly inadequate and takes no account of the true
value and potential of the Company.

In its announcement this morning, Macfarlane quoted from BPI's recent results
announcements.  The Board of BPI takes particular exception to the selective
nature of these quotations.  BPI is currently undergoing an extensive
reorganisation which is expected to deliver significant benefits.  The Company
stated in its interim results announcement on 11 September 2000:

'We currently anticipate a significant improvement in performance as the
effect of these changes start to come through early next year, by which time
our results will benefit from the elimination of loss makers, greatly reduced
restructuring costs and a lower cost base.  Any reduction in raw material
costs or a return to more favourable exchange rates will result in even
further improvements to the Group's profitability.'

Cameron McLatchie, Chairman of BPI, said today:

'Given the reorganisation underway and the current state of the exchange rate
and raw material price cycle, Macfarlane's offer is clearly entirely
opportunistic.  Macfarlane is trying to buy BPI at a bargain-basement price. 
Its offer fundamentally undervalues BPI and should be rejected outright.'


Cameron McLatchie, Chief Executive
01475 501 000

Greenhill & Co.
Simon Borrows
020 7440 0400

Financial Dynamics
Tim Spratt
020 7831 3113

Greenhill & Co., which is regulated in the United Kingdom by the Securities
and Futures Authority Limited, is acting for BPI and no-one else in connection
with the offer, and will not be responsible to anyone other than BPI for
providing the protections afforded to customers of Greenhill & Co., or for
providing advice in relation to the offer.
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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