Holding(s) in Company

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

Coats Group Plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

x

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

MSD Partners, L.P.

4. Full name of shareholder(s) (if different from 3.):iv

MSD European Opportunity Master Fund, L.P.

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

25 July 2016

6. Date on which issuer notified:

1 August 2016

7. Threshold(s) that is/are crossed orreached: vi, vii

Below 5%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

GB00B4YZN328

79,606,443

79,606,443

56,006,443

3.98%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

N/A

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

N/A

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

56,006,443

3.98%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

MSD Partners, L.P. (formerly known as MSDC Management, L.P.) is the Investment Manager that, both directly and through a sub-advisory relationship with MSD Partners Europe, LLP (formerly known as MSD Capital (Europe), LLP), provides investment management and other services to MSD European Opportunity Master Fund, L.P. Glenn R. Fuhrman and Marc R. Lisker are the Managers of MSD Partners, L.P.'s general partner.

Proxy Voting:

10. Name of the proxy holder:

N/A

11. Number of voting rights proxy holder will ceaseto hold:

N/A

12. Date on which proxy holder will cease to holdvoting rights:

N/A

13. Additional information:

N/A

14. Contact name:

Cheryl Zabala

15. Contact telephone number:

+1 (212) 303-4623