PHD Proactis Holdings Plc

RNS No 6856j
PETERHEAD GROUP PLC
10th June 1998


Peterhead Group PLC ("Peterhead" or the "Company") 

Peterhead announces that it has reached an agreement with its bankers, and
Tufton Capital Limited ("Tufton") (the "Agreement"), in terms of which its
bankers will, subject to certain conditions, continue to make available to
Peterhead the level of facilities currently available to the Company for a
further period of twelve weeks, and Tufton have agreed, subject to certain
conditions, to provide a facility of up to #500,000 to finance any further
requirements of the Company over the same period, in excess of those which
could be met under the facility limit agreed with its bankers, if such funding
is required by Peterhead.

These arrangements are conditional on Peterhead sending a circular to its
shareholders, during the initial eight weeks of the twelve week availability
period of the facilities, with a view to raising additional equity finance to
enable Peterhead to secure the long term future of the Company.  During this
initial eight week period, Peterhead will be consolidating its affairs and
preparing the necessary documentation with a view to  approaching its
shareholders to raise such additional equity finance.

The amount and terms of the proposed equity fundraising cannot be established
at this stage, because Peterhead is currently conducting negotiations with the
intention of disposing of some of the assets of its subsidiary, Peterhead
Crane Company Limited, and of securing a refinancing of its crane fleet.  The
Agreement includes provisions under which Tufton may, under certain
circumstances and subject to any necessary approvals of its shareholders, the
Irish Stock Exchange, the London Stock Exchange and the Panel on Takeovers and
Mergers, be entitled to subscribe for fifty per cent. of any new monies
raised, and to have certain other rights, still to be fully negotiated, which
may involve the right to appoint two directors to the board of Peterhead, who
will, in certain circumstances, have majority voting rights.

Existing shareholders of Peterhead, who will have the opportunity to
participate in the proposed equity fundraising, will suffer a dilution of
their existing investment in the Company, which may be substantial.  The
extent of such dilution will depend on the final terms of the proposed equity
fundraising, which the Company will put before its shareholders for their
approval in due course.


END




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