Pex PLC - Joint Venture

RNS No 9405w
PEX PLC
19 February 1999

Pex plc ("Pex") is pleased to announce today that it has entered into a joint
venture agreement, with Uniwear S.A. ("Uniwear") to invest in a Romanian socks
manufacturer, Apollo S.A. ("Apollo").

Uniwear acquired a 50.91% shareholding in Apollo on 10 November 1998 from the
Romanian State Ownership Fund for a consideration of USD 300,001. Pex will
acquire half of these shares from Uniwear for USD 150,000 and will also
reimburse Uniwear half of Uniwear's expenses, the total cost to Pex being USD
238,000. In addition, Pex and Uniwear have each committed to subscribe for not
less than USD 250,000 to a proposed capital increase of up to USD 2,500,000 to
be held by Apollo. The number of shares to be subscribed by Pex will be based on
a price per share of Romanian Lei 1,000 and on the exchange rate prevailing at
the time of subscription. If Apollo succeeds in raising USD 2,500,000 at
exchange rates currently prevailing, Pex and Uniwear will each own
approximately 12% of the enlarged share capital of Apollo.

Apollo manufactures socks in Romartia and distributes throughout Europe. As at
30 November 1998, the unaudited management accounts of Apollo showed net assets
of Romanian Lei 5.8 bn and loss before tax for the eleven months ended 30
November 1998 of Romanian Lei 294.9m. The exchange rate on 18 February 1999 was
$1 to Lei 12,216. As part of the investment agreement Pex will be represented 
on the Board of Apollo.

The joint venture partner, Uniwear, by virtue of common directorships with Pex
and as a 25.96 % shareholder in Pex, is a related party to Pex. lt is the
opinion of British Linen Bank, financial adviser to Pex, that the terms of
investment by Pex are no less favourable than those of Uniwear.

Ian Reeves, the non-executive director of Pex, and who is independent of
Uniwear, and Mq Andrea Cattaneo Della Volta and Yves De Poorter, directors of
both Pex and Uniwear, will become directors of Apollo.


Mq Andrea Cattaneo Della Volta, Chairman and Chief Executive, Pex plc,
commented:

"This is an excellent opportunity for Pex to gain access to a low cost supplier
of socks to augment its own production facilities and, in addition, provides Pex
with an attractive exposure to other European sock markets".

Enquiries: Mq Andrea Cattaneo Della Volta         Tel. 0116 290 3090
Pex plc

END



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