RNS Number:5951K
McLeod Russel Holdings PLC
30 April 2003

FOR IMMEDIATE RELEASE
                                                       30 April 2003



           McLeod Russel Holdings PLC ("McLeod Russel" or "Company")


            Update on trading statement and potential offer together
            with appointment of new director and financial advisers



Update on trading statement



Following the announcement made on 27 March 2003 about a possible offer for the
Company, McLeod Russel has been in an Offer Period for the purposes of the City
Code on Takeovers and Mergers ("the City Code").  The Board therefore believes
it would be helpful to expand on the comments previously made by the Chairman
about the current trading position of the Group.



On 27 February 2003, at the Company's AGM, the Chairman indicated that profits
for the year were likely to be lower than in the previous financial year.  On 11
April 2003, the Company stated that, since that time, in line with the general
weak economic environment, there had been additional contract deferrals in the
Group's Cudd Bentley and German businesses, together with generally reduced
demand in the UK.



The Board has assessed the impact of the factors referred to on 11 April 2003
and appropriate actions (including significant headcount reductions) have
already been identified and initiated to limit the impact on the Group and
better position the operations concerned for the future.  The total cost of
addressing these issues and restructuring actions previously identified this
year is estimated to amount to approximately #2.5 million.



Taking all these factors into account, the Board believes the Group will report
a loss before tax in the current financial year to 30 September 2003.



The Board is pleased to announce that, on 22 April 2003, the Group's Dutch
coatings operation, Eurogard, which continues to trade satisfactorily, secured a
new four-year supply contract with its principal supplier and customer, General
Electric Plastics B.V. (a subsidiary of General Electric of the USA), which
represents an important component in underpinning its prospects and value.



Update on offer approach and appointment of financial advisers



Since 27 March 2003, when the Board announced that it had received an
unsolicited approach concerning a possible offer for the Company, a number of
other expressions of interest in potentially making an offer for the Company
have been received from trade parties.  The Company has therefore today
appointed Amethyst Corporate Finance PLC to instigate a process whereby
potential offers for the Company can be explored and evaluated.  This process is
now commencing and further announcements will be made when appropriate.



As the Company is in an Offer Period for the purposes of the City Code, it is
required to make a formal statement of the assumptions underlying the
announcement regarding the Group's trading position set out in this press
release and to publish reports on the statement by the Company's auditors and
financial advisers in the form required by the City Code.  In view of the legal
and regulatory requirements to notify changes in the Company's expectations as
to its performance without delay, compilation of the formal statement of the
assumptions and related reports required by the City Code has not been possible
in the time available.  The statement and advisers' reports will be set out in a
further press release which will be issued as soon as is practicable.



Shareholders should read the update on trading contained in this press release
in the context of the statement of assumptions and advisers' reports, once
published, which will be relevant to an assessment of the announcement.



Appointment of new Director



McLeod Russel is pleased to confirm the appointment today of Mike Balfour as a
non-executive Director of McLeod Russel, in line with the announcement
previously made on 11 April 2003.  The Board welcomes him as a Director at this
important time in the Group's development.



The Company confirms that, save as disclosed below, it is not aware of any
details requiring disclosure under Listing Rule 16.4 in respect of the
appointment.  Mike Balfour was an executive director of Edinburgh Fund Managers
Group plc until 5 October 2001.





Enquiries



McLeod Russel Holdings PLC

Ian Hazlehurst

Richard Cotton

+44 (0) 1235 536677



Amethyst Corporate Finance PLC

John Edwards

Marcus Shapiro

+44 (0) 20 7936 9191



The directors of McLeod Russel Holdings plc accept responsibility for the
information contained in this announcement relating to McLeod Russel Holdings
plc.  To the best of the knowledge and belief of the directors of McLeod Russel
Holdings plc (who have taken all reasonable care to ensure that such is the
case) the information contained in this announcement for which they accept
responsibility is in accordance with the facts and does not omit anything likely
to affect the import of such information.



Amethyst Corporate Finance PLC, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting for McLeod Russel
Holdings plc and no one else in connection with the possible offer for McLeod
Russel Holdings plc and will not be responsible to anyone other than McLeod
Russel Holdings plc for providing the protections afforded to clients of
Amethyst Corporate Finance PLC, or for providing advice in relation to the
possible offer, or for giving advice in relation to the contents of this
announcement.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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