RNS Number:4955N
Dawson International PLC
13 July 2003



                Dawson International ("Dawson" or "the Company")

      Statement re. new borrowing facilities and update on current trading

The Company has recently held discussions with its bankers Bank of Scotland,
Royal Bank of Scotland and Clydesdale Bank. During these discussions Bank of
Scotland and Royal Bank of Scotland confirmed that they were prepared to
maintain their existing facilities amounting to jointly #20 million. Clydesdale
Bank, which historically provided a letter of credit facility of #5 million,
declined to renew its facility.

The Board of Dawson concluded that, whilst the Company is currently trading
within its existing facilities, given the seasonal working capital requirements,
it urgently needed to agree a replacement for that letter of credit facility.

Against this background, the Independent Directors (being the Directors other
than Messrs Trevor Beyer and Ross Burney who are representatives of the Guinness
Peat Group ("GPG")) have considered and approved the provision of a #5 million
short-term facility by GPG, a 29% shareholder in Dawson.

The terms of the facility are as follows:

Amount                up to #5 million

Repayment             by no later than 31 December 2003

Interest rate         9.5% per annum calculated on the
                      outstanding balance at the end of each month

The Independent Directors have also undertaken to use best endeavours to convene
an EGM, at which GPG would not be entitled to vote, to vary this agreement to
grant to GPG a floating charge over the assets of Dawson Forte (a division of
Dawson's US subsidiary) and to approve the issue to GPG of warrants to subscribe
for new shares in Dawson under the following terms:

The Company shall issue to GPG warrants to subscribe for 10% of the ordinary
share capital of the Company at an exercise price represented by the lowest
average price for five consecutive business days during the period which the
loan is outstanding. The exercise price is to be adjusted for any subsequent
capital raising and any capital reorganisation required before or after the
issue of the warrants. The warrants are to be exercisable at any time after
their issue upon the giving of 7 days notice to the Company and to have a life
of 3 years from the date of being issued.

The Independent Directors have undertaken to recommend that shareholders vote in
favour of the necessary resolutions (including those relating to the takeover
code) required to implement these variations and in respect of their own shares
and those shares controlled by them (representing in total 28% of issued share
capital) to similarly vote in favour of the resolutions.

Update on current trading:

There has been no improvement in trading in the first half. Market conditions in
the luxury cashmere markets have remained difficult. Taken together with the
costs of higher pension contributions and for the Ballantyne brand development,
the result for the first half will be a greater loss than last year. Underlying
trading conditions are unlikely to improve significantly in the seasonally
stronger second half.



For further information please contact:

Mike Hartley, Chairman:   01629 55098

David Cooper, Finance Director: 01577 867000

Media enquiries: Gordon Beattie: 07768 588163






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

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