RNS Number:5168T
API Group PLC
22 December 2003


API Group plc announces that on Friday 19 December it completed the disposal of
Learoyd Packaging Limited to Flytrack Limited, a company established for the
purpose of the acquisition by the existing management of Learoyd Packaging.
Included in the sale is the leasehold title to the property in Burnley from
which Learoyd Packaging operates. Learoyd Packaging produces specialist
packaging for the food industry, and is currently loss-making.

The consideration comprises #1 for the ordinary share capital of Learoyd
packaging, plus repayment of #800,000 of inter-company debt owed by Learoyd
Packaging to API. The balance of the debt owed to the Group has been written
off. The consideration for the property leasehold title is #700,000.

The loss before tax of Learoyd Packaging for the year to 30 September 2003 was
#4.0 million and its net liabilities as at that date were #5.2 million. The net
proceeds will be used to reduce Group debt.

Derek Ashley, API Group Chief Executive said, "this disposal is part of the
development of our plans to focus on the core speciality coatings businesses of
the Group.  It will allow capital that would have been necessary to bring
Learoyd Packaging back to profitability to be used more effectively elsewhere in
the Group."


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