GSD Goldshield Grp

RNS No 7065f
GOLDSHIELD GROUP PLC
20 September 1999

          GOLDSHIELD GROUP PLC (the "Company")
                            
           Acquisition of Nitrofurantoin Range

Goldshield  Group PLC today announces the acquisition  of
licenses, trademarks and know-how (the "Rights") relating
to  a  range  of products containing Nitrofurantoin  from
Procter & Gamble Pharmaceuticals ("Procter & Gamble") for
the   UK,   Germany,   Republic  of   Ireland,   Austria,
Switzerland,  Belgium  and the Netherlands,  for  a  cash
consideration  of  US$11.68 million payable  in  full  on
completion (the "Acquisition"). In addition, the  Company
has  agreed to acquire stocks of finished Products up  to
an amount not exceeding US$550,000.
The  range  of  products  consists  of  the  prescription
products  Furadantin, Macrodantin, Furabid  and  Macrobid
(the  "Products")  which are used for  the  treatment  of
urinary  infections. Macrobid and Furabid are subject  to
patent protection in Europe to the year 2007.
Furadantin and/or Macrodantin are currently sold  in  all
countries for which the Company is acquiring the  Rights.
Macrobid  is  currently sold in the UK  and  Republic  of
Ireland,  Furabid is sold in the Netherlands.  Net  sales
for  all countries in which the Rights are being acquired
for  the  year  to  30  June 1999 were  US$4.90  million.
Operating under Procter & Gamble's charging structure and
cost  base,  the  Products  contributed  US$  769,000  in
profits  in  all countries for the year to 30 June  1999.
Sales  in  the UK (at trade prices) for the  same  period
were #1.0 million (source: BPI 6/99).
The  Company  is  also  in discussions  relating  to  the
purchase of product rights in an additional territory.

  Ajit  Patel, Chairman and Chief Executive of Goldshield
Group PLC said..
"The  Nitrofurantoin range fits our acquisition  criteria
perfectly being a niche product in a growing and sizeable
market."
Mark   A.   Collar,   President  of  Procter   &   Gamble
Pharmaceuticals said..
"The Nitrofurantoin franchise is a good business, but  we
are  choosing  to  focus  our  resources  in  Europe   on
opportunities  which fit better with our  strategic  plan
for Pharmaceuticals".

Enquiries:

Goldshield Group plc
Ajit Patel                         Tel: 0181 649 8500

END

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