RNS Number:9259S
Geest PLC
05 December 2003



5 December 2003

                                   GEEST PLC

                           NEW GEEST BUSINESS VENTURE




Geest PLC, the leading fresh prepared foods and produce company, announces today
that it is in discussions to form a new business (NewCo), which would combine
initially the current import activity of Geest's English Village Salads (EVS) -
a business dedicated to Asda Wal*Mart (Asda) - and the business of Thames Fruit
Ltd - an exclusive importer of citrus fruits and melons for Asda.  The purpose
in creating NewCo is to simplify the supply chain for imported produce to Asda.



Geest would take a 76% share of NewCo and Emilio Teresa, the owner of Thames
Fruit Ltd, would hold the remaining 24%.  Geest would not transfer any assets to
NewCo and the estimated value of assets transferring from Thames Fruit Ltd is #1
million.  In terms of sales, #65 million of Geest's turnover (approximately 50%
of EVS's turnover) and #60 million of Thames Fruit Ltd's turnover would be
affected.  Currently, both parties trade as principals.





Through a supply contract with Asda, NewCo would become its agent for imported
produce and therefore the turnover definition would change.  Consequently, NewCo
is expected to report an estimated annualised service income of some #29 million
and an annualised profit before tax of #1.6 million in its first year of
operation.


The agreement is expected to be finalised in January 2004 and NewCo to become
operational in the second half of 2004.  NewCo would operate from two sites in
Yorkshire and Kent and EVS would continue to supply Asda separately with produce
sourced from the domestic market.


Should Asda wish to terminate the supply contract, it would give two years'
notice to buy out NewCo at net asset value and assume all employee
responsibilities.




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Enquiries:
Mark Pullen/Paula Cooper
Geest PLC                                            Tel: 01775 761111

Tim Spratt/Michelle Morton                           Tel: 0207 831 3113
Financial Dynamics









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