Extension of Waco International Offer

AAF Industries PLC 3 December 1999 Not for release or distribution in or into the United States of America, Canada, Australia or Japan RECOMMENDED UNCONDITIONAL CASH OFFER BY KPMG CORPORATE FINANCE ON BEHALF OF WACO INTERNATIONAL LIMITED FOR THE ISSUED SHARE CAPITAL OF AAF INDUSTRIES PLC NOT ALREADY OWNED BY WACO INTERNATIONAL LIMITED AND ITS SUBSIDIARIES EXTENSION OF OFFER Waco International Limited ('Waco') announces that its revised recommended unconditional cash offer ('Offer') for the share capital of AAF industries Plc ('AAF') not already owned by the Waco Group as set out in its Offer Document dated 24 September 1999 ('Offer Document') and its Revised Offer Document dated 5 November 1999 ('Revised Offer Document') will remain open until further notice. As at 3pm on 2 December 1999, Waco owns, or has received valid acceptances in respect of, in aggregate, 9,226,118 AAF Shares, representing approximately 39.96 per cent. of the issued share capital of AAF. Prior to the commencement of the Offer on 24 September 1999 the Waco Group, including all persons acting in concert with Waco, owned 13,625,229 AAF Shares, representing 59.02 per cent. of the issued share capital of AAF. Consequently, the Waco Group now owns and has received valid acceptances of the Offer in respect of a total of 22,851,347 AAF Shares, representing approximately 98.98 per cent. of the issued share capital of AAF. As announced on Friday, 19 November 1999, Waco now intends to apply the provisions of Sections 428 to 430F of the Companies Act 1985 to acquire compulsorily any outstanding AAF Shares. Words and expressions defined in the Offer Document and the Revised Offer Document shall, unless the context otherwise requires, have the same meanings when used in this announcement. Enquiries: Waco International Limited 00271 1883 4119 Mike Smithyman Mark Towler KPMG Corporate Finance 0171 311 1000 David Simpson Marc Cramsie AAF Industries plc 01964 542131 Andrew Walker KPMG Corporate Finance, a division of KPMG which is authorised by the Institute of Chartered Accountants in England and Wales to carry on investment business, is acting for Waco and no one else in connection with the Offer and Revised Offer and will not be responsible to anyone other than Waco for providing the protections afforded to clients of KPMG Corporate Finance nor for giving advice in relation to the Offer and the Revised Offer. The contents of this announcement have been approved for the purpose of Section 57 of the Financial Services Act 1986 by KPMG Corporate Finance.