Goldshield Grp PLC - Acquisition

RNS No 8366r
GOLDSHIELD GROUP PLC
26 May 1999

                    GOLDSHIELD GROUP PLC

  Acquisition of Regina Health Limited & Regina UK Limited


Goldshield  Group  plc announces that  on  25  May  1999  it
entered  into  a conditional agreement with  Regina  plc,  a
company listed on the London Stock Exchange, to purchase the
entire issued share capital of certain subsidiary companies,
namely Regina Health Ltd and Regina UK Ltd. The agreement is
conditional upon the approval of Regina plc shareholders  at
a general meeting.

The  consideration is #2.2 million payable in cash of  which
#500K is deferred over a period of one year. This is subject
to  a  maximum  adjustment of #150K dependent upon  the  net
value  of stocks, trade debtors and trade creditors  of  the
two companies at completion.

Regina  Health  Ltd,  the principal  trading  subsidiary  of
Regina plc, markets and distributes a range of premium Royal
Jelly  food  supplements world-wide.  Regina  UK  Ltd  is  a
dormant company.

Regina Health Ltd achieved sales of just over #1 million  in
the  year  ended 31 August 1998. This acquisition represents
an  excellent  opportunity  to access  the  premium  branded
market both in the UK and internationally. Customers in  the
UK include Harrods, Selfridges and Boots.

In  addition new distribution channels will become available
with the potential of developing new innovative products and
line extensions to the highly regarded Regina brand.


Ajit Patel, Chairman and Chief Executive of Goldshield Group
said.


"This   acquisition  gives  us  a  premium  brand  both   in
international  markets  and the UK,  where  it  is  sold  in
Harrods, Selfridges and Boots. It is a strategic opportunity
to  develop  new  products and line  extensions  within  the
Regina  brand,  gaining an entry into  the  premium  branded
market internationally."



For further information please contact:

Buchanan Communications       0171 466 5000
Andy Yeo/Tom Gadsby

Goldshield Group plc will be announcing Preliminary results for
year ended 31 March 1999 in early July.

END


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