Disposal

Anglo-Welsh Group PLC 4 December 2000 Anglo-Welsh Group plc ('Anglo Welsh' or the 'Company') Sale of certain canal boat business assets to Aquatravel Limited ('Aquatravel') The Board of Anglo Welsh announces that it has today sold certain business assets of its canal boat business for a consideration of £800,000 in cash to Aquatravel. The consideration is subject to adjustment in respect of prepayments and holiday deposits. At the same time, Anglo Welsh has entered into a management agreement with Aquatravel which will transfer all responsibility for operating its canal boat fleet. The business assets sold, which had a net book value of £709,000 as at 31 October 2000, comprise the stocks, equipment, certain leaseholds and operational contracts, ten day boats and two day cruisers and intellectual property relating to the holiday management business including the right to the trading name 'Anglo Welsh' and the domain name 'anglowelsh.co.uk'. Anglo Welsh will retain ownership of its remaining 113 narrow boats. Under the terms of a five year management agreement, Aquatravel will manage the hiring out of the boats on behalf of Anglo Welsh. Aquatravel will receive a management fee equal to a specified percentage of the hire fees received by Anglo Welsh from holidaymakers for each boat. These percentages range from 90 per cent. in year 1 to 75 per cent. in year 5. The business assets were sold free of all book and other debts other than in relation to any operational contracts which are being assumed by the purchaser. No accounts have historically been drawn up for the canal boat hire business although it comprised the principal source of sales revenue for the Company. In the 6 months to 30 April 2000 the Anglo Welsh Group as a whole made a loss on ordinary activities before taxation of £1,530,000. David Medlock was until 28 November 2000 a Director of Anglo Welsh. Aquatravel is a newly formed company of which Mr Medlock is also a director and a substantial shareholder. As Mr Medlock is a former Director of Anglo Welsh and as he is also a shareholder in Aquatravel Limited, he is an associate of that company for the purpose of the AIM Rules and the disposal is a related party transaction for the purpose of those Rules. Anglo Welsh has agreed to repay £150,000 out of a £500,000 secured loan made available to the Company by Mr. Medlock out of the proceeds from the sale. Mr. Medlock will also be paid accrued interest at a rate of 8% per annum on the loan. Anglo Welsh, having consulted with Strand Partners Limited, the Company's financial advisers, confirm that in the Board's opinion, the terms of the disposal and the part repayment of the loan to Mr. Medlock are fair and reasonable, so far as the shareholders of Anglo Welsh are concerned. The cash proceeds arising from the disposal will be used partly to repay shareholder indebtedness with the balance being applied to reduce bank indebtedness. Enquiries: Stephen Thomson Anglo-Welsh Group plc (0117) 924 1200 Tony Rawlinson Strand Partners Limited (0207) 409 3494