RNS Number:0144I
Mid-States PLC
26 February 2003

26 February 2003


                                 MID-STATES PLC
                                ("the Company")

                               RETURN OF CAPITAL


The Company announces that, following consultation with certain of its principal
shareholders, the Board is preparing proposals for the reduction and return to
shareholders of capital in the Company.

The return of capital is likely to result in payment to shareholders of an
amount equivalent to approximately 10.3 pence per share held by them on the date
the capital reduction becomes effective.   Following the return of capital, the
Company is expected to have remaining net assets substantially comprising cash
balances of an amount totalling approximately #7.3 million, equivalent to
approximately 14.2 pence per share.

The Board currently intends to commence the process for the return of all or the
majority of this remaining cash to shareholders around the end of 2003, unless,
prior to that time, the Board has identified a suitable new business for
acquisition by the Company.   Any such acquisition is likely to take the form of
a reverse takeover and would require the approval of the Company's shareholders.

The capital reduction will require the approval of shareholders and the approval
of the High Court.   A circular regarding the proposals and convening an
Extraordinary General Meeting will be despatched to shareholders shortly.

                                     -ends-


For further information, please contact:

Mid-States PLC                                            020 7603 1515
Tony Hunter

Weber Shandwick Square Mile                               020 7067 0745
Christian Taylor-Wilkinson


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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