by Mike Laycock, Tony Tierney and Janet Hewison

Ecstatic staff this afternoon welcomed back the paintings stolen in York's great art gallery robbery.

Richard Green with the paintings at York police station today

All 20 paintings grabbed by two armed raiders on January 22 from the City Art Gallery were recovered by police last night during an armed operation on an industrial estate near Rotherham.

And two men have been arrested and were this afternoon still helping police with their inquiries.

The paintings, which were found in a suitcase inside the boot of a car, were in a remarkably good condition, said jubilant curator Richard Green.

"It's wonderful news. It's difficult to believe it's true," he told a press conference at the gallery.

Staff at the gallery, who were tied up and threatened by the robbers in January, were equally delighted to hear that the paintings had been recovered.

"It's absolutely amazing. It's fantastic news for us all," said shop manager Jeanette Gelder. "I have had butterflies in my stomach since I first heard this morning."

Guide Ron Fisher said: "We are all highly delighted. It's almost as big a shock to hear they have been found as when they were stolen. You cannot dismiss the possibility that the paintings could have been taken out of the country, and we would never have seen them again."

Detectives today praised the rewards offered by the Evening Press and City of York Council, saying they assisted in the investigation by "focusing people's minds."

The council's £20,000 reward was offered for information leading to the safe return of the paintings, while the Evening Press's £5,000 reward was for their return and also the conviction of those responsible. Editor Liz Page said she would be liaising closely with the police and council over the matter.

Detective Inspector Phil Metcalfe also said the appeal on Crimewatch UK by the late presenter Jill Dando, which resulted in dozens of calls from members of the public, had also helped in the four-month inquiry. "It assisted greatly. It's just a pity she will not be here to see the good results of her appeal."

York council leader Rod Hills paid tribute to Supt Jim Kilmartin and fellow police at York who helped recover the paintings. "It's policing at its best and we are extremely grateful," he said.

Fifty officers from North and South Yorkshire, and also the National Crime Squad, were involved in last night's operation in Lowton Way on the Hellaby Industrial Estate, not far from the M1.

The two arrested men, aged 29 and 49, are from the Rotherham area. No further details have been released.

The artworks recovered include a Turner watercolour of Rievaulx Abbey thought to be worth several hundred thousand pounds.

Some of the works, cut from their frames, will need extensive restoration, while others were left in their frames and are in excellent condition.

Curator tells of his joy

Overjoyed curator Richard Green today surveyed the recovered paintings and said: "It's just too good to be true."

Mr Green, who in January branded the robbery the blackest day in the gallery's history, said the news that all 20 paintings had been found in reasonable condition was still sinking in.

He had hoped they would come back eventually, but feared it would take years, and not all 20 together.

"I am finding it hard to absorb. It's difficult to believe it's true. A huge shadow has been lifted. It's wonderful news."

He said the paintings were in good condition, "given what they have been through."

But he said some would still need to go away for extensive restoration work.

He declined to comment when asked whether security had been stepped up sufficiently to prevent any such robbery ever happening again.

Supt Jim Kilmartin, head of York police, said: "If anybody is thinking of repeating this offence, they should think again, because the strike rate is pretty good."

Landscape by master was pick of gallery haul

by Janet Hewison and Rebecca Gilbert

The biggest catch in the York City Art Gallery raid was an 1820s watercolour of Rievaulx Abbey by JMW Turner.

The painting, which has been valued at £450,000, was placed in the top ten most sought-after works of art in London's Art Loss Register after it was stolen in last January's raid.

It had been on loan to the art gallery for the last eight years from an undisclosed private collector.

The Turner was one of 20 treasures stolen in the raid which also included two works by 20th-century artist Walter Sickert and two 14th-century panels of St Peter and St Paul by Bartolomeo.

Many were ripped out of their frames by the robbers and will need careful restoration work.

The robbers also left behind paintings that they had removed from the wall, including Lowry's famous painting of Clifford's Tower.

Most of the non-British pictures stolen were donated to the art gallery in 1955 as part of the FD Lycett Green collection.

Several of the British works were donated by the former Dean of York, Eric Milner White, during the years 1941 to 1963.

Following the robbery, all 20 works were placed on the Evening Press website in the hope of alerting art lovers to the missing paintings.

The following are the paintings which were stolen;

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.