On 9 February 1801, while in the Bay of Gibraltar, Peard observed seven French ships of the line and two frigates, entering the Mediterranean, which he correctly assumed were bound for Egypt to relieve the French army there. Peard set sail in pursuit, intending to overtake them and find Lord Keith, the naval commander-in-chief, to inform him of their location. He caught up with the French squadron off Cape de Gata, and sailed past them during the night. For the next two days the French remained in sight at a distance. A fresh breeze sprang up during the night of the 12th, and Peard attempted to outdistance them, but discovered the French close by the next morning. They gave chase, and Peard set a course west hoping to encounter pursuing British ships. However at noon the wind fell, and the two French frigates crept closer. At 3 p.m. the French opened fire, and Peard, realising that his situation was hopeless, surrendered. When interrogated, Peard falsely claimed that British forces had landed on the coast of Egypt (which did not occur until 8 March), and that Rear-Admiral Sir John Borlase Warren, with a powerful squadron, was close by and in pursuit. Ganteaume changed course, and his squadron arrived at Toulon six days later, where Peard and his officers were promptly exchanged, arriving at Port Mahon by cartel on 26 February.