£14.8M Acquisition of Specified Fuels & Chemicals

Ascot PLC 13 March 2000 Contact Howard Dyer, Executive Chairman Ascot Plc 0207 815 0805 David Bick Holborn Public Relations 0207 929 5599 david_bick@holbornpr.co.uk Ascot Plc Acquisition of Specified Fuels & Chemicals ('Specified') for $23.5 million (£14.8 million) KEY POINTS * Significant increase in chemical custom processing capacity in the growing US market where Ascot is winning new contracts and requires capacity. * Ascot is the US market leader for distillation custom processing; Specified is the US market leader, and Ascot the European market leader, in supplying research and reference fuels to the automotive, fuel and lubricant industries. * The combined businesses make Ascot the world's largest supplier of research and reference fuels. * For the year ended 31 December 1999, Specified generated turnover of $26.6 million (£16.8 million) and profit before interest and tax of $3.1 million (£2.0 million). Net assets acquired, valued as at the same date, are $24.4 million (£15.4 million). * Purchase price of $23.5 million (£14.8 million) debt free, below net assets, paid in cash at completion. * Acquisition is expected to be earnings neutral in the first full year and earnings enhancing thereafter as the additional capacity is brought on stream. Commenting on the acquisition, Howard Dyer, Executive Chairman of Ascot, said 'Following our announcement that we are concentrating the Group's future activities on the chemicals sector, this acquisition represents an important opportunity to continue to develop Ascot Speciality Chemicals in the USA. Specified provides significant additional custom processing capacity complementing our existing operations in Houston which are fully utilised. It also provides excellent infrastructure and space for further expansion'. Ascot Plc has acquired Specified Fuels & Chemicals LLC ('Specified') for a cash consideration, paid on completion, of $23.5 million (£14.8 million) slightly below the net asset value of $24.4 million (£15.4 million). Following completion, the Company will be debt free. Specified provides major chemical companies with chemical custom manufacturing services and manufactures research and reference fuels. The company is based in Houston, Texas, less than one mile from Ascot's own facility. Ascot's chemical custom processing business in Houston is currently negotiating with major chemical and petrochemical companies a number of significant custom processing contracts for which additional capacity is required. The acquisition of Specified immediately brings that additional capacity and space available for expansion in a location that is virtually adjacent to Haltermann's plant and one that, like Haltermann's, has excellent infrastructure, being accessible by water as well as by road and rail. In addition to providing much needed additional capacity, Specified is the US market leader in supplying research and reference fuels which are used in automotive engine tests for emission and fuel economy certification and for engine lubrication and fuel research and development. Specified therefore complements Haltermann Products which is the market leader in research and reference fuels in Europe, having an estimated 60% share of the market. The acquisition is expected to bring the benefits of shared research and technology as well as a complementary customer base. Funding for the consideration will be met through existing cash resources, and a new $15 million facility provided by Dresdner Bank AG in London. Notes to Editors: Ascot's core business is fine and speciality chemicals. The Speciality Chemicals and Fine Chemicals divisions, which are together responsible for approximately 60% of Group turnover and 75% of Group profits, were formed following the successful acquisition and integration of the Haltermann Group (acquired by Ascot in December 1998) and ChiroTech (the world leading chiral technology company acquired by Ascot in September 1998 (30%) and October 1999 (70%)). Ascot Speciality Chemicals is the world's largest independent chemical custom processor and also manufactures speciality products. Fine Chemicals comprises ChiroTech and the manufacturing facilities of Mitchell Cotts Chemicals. The Group also has a number of other operations involved in engineering and property. As announced on 31 January 2000, Ascot will divest of its four small engineering businesses and other non-core assets over the next 18 months. These divestments will enhance the Group's financial ability to look for acquisitions to complement the Speciality Chemicals and Fine Chemicals interests and to grow both businesses organically. Ascot is headquartered in London and employs over 2,000 people world-wide. The Group has a substantial presence in the UK, Germany, Belgium, Scandinavia and North America and a broad international customer base for all of its businesses.