RNS Number:1702I
Coats PLC
03 March 2003

The following is the full text of two letters received by Coats plc:

LETTER FROM GUINNESS PEAT GROUP PLC



28 February 2003

Company Secretary
Coats plc
1 The Square
Stockley Park
Uxbridge
Middlesex UB11 1TD

                                                          By Fax : 020 8210 5025

Dear Sirs

Disclosure of Interest in Shares Pursuant
to S.198 to 202 of the Companies Act 1985

Guinness Peat Group plc ("GPG") and its subsidiary companies (the "Group")
hereby notify Coats plc ("Coats") that with effect from yesterday's date the
nature of the Group's interest in 179,082,728 ordinary shares in Coats (the
"Coats Shares") altered as a result of the subscription by RIT Capital Partners
plc (and certain parties connected to it) and Chapman International Investments
Limited for shares carrying, in aggregate, 50% of the votes in the share capital
of Avenue Holdings Group Limited ("AHG"). AHG was, prior to that subscription, a
subsidiary of GPG.

The Coats Shares are beneficially owned by a wholly owned subsidiary of AHG,
Avenue Acquisition plc. GPG, through its wholly owned subsidiary GPG (UK)
Holdings plc, continues to hold shares carrying the remaining 50% of the votes
in AHG.

The Coats Shares continue to be registered in the names of Allied Mutual
Insurance Services Limited (40,388,496 Coats Shares) and Paramount Nominees
Limited (138,694,232 Coats Shares).

Yours faithfully



Richard Russell
Company Secretary


                         Avenue Holdings Group Limited

                         Craigmuir Chambers, PO Box 71

                   Road Town, Tortola, British Virgin Islands



27 February 2003


Company Secretary

Coats plc

1 The Square

Stockley Park

Uxbridge

Middlesex UB11 1TD



                                                     Facsimile No: 020 8210 5025



Dear Sirs

DISCLOSURE OF INTEREST IN SHARES PURSUANT

TO S.198 TO 202 OF THE COMPANIES ACT 1985

Avenue Holdings Group Limited and its subsidiary companies, including in
particular Avenue Acquisition plc ("the Group"), hereby notify Coats plc
("Coats") that the Group today acquired an interest in the Ordinary 20 pence
shares of Coats amounting to 179,082,728 representing 25.29% of the issued share
capital ("Shares"). The Shares are registered in the name of Allied Mutual
Insurance Services Ltd and Paramount Nominees Ltd (who hold on behalf of Allied
Mutual Insurance Services Ltd).

So far as the Group is aware, no person interested in the Shares is party to any
agreement or arrangement relating to the exercise of any rights conferred by
holding the shares subject to this notification.

Yours faithfully,





Mark Butcher

Director









                Registered in British Virgin Islands No. 530728

                Registered Office: Craigmuir Chambers, PO Box 71

                   Road Town, Tortola, British Virgin Islands


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