Sale of Small Engineering Business

Ascot PLC 31 January 2000 Contacts: Howard Dyer, Executive Chairman Martin Rogers, Finance Director Ascot Plc 0171 815 0805 David Bick Holborn Public Relations 0171 929 5599 david_bick@holbornpr.co.uk Ascot Plc Sale of Small Engineering Business During the course of the past eighteen months, Ascot Plc ('Ascot') has acquired the Haltermann Group, making Ascot the world's largest independent chemical custom processor, and ChiroTech, a world leading chiral technology company. Following the successful integration of these acquisitions, the Board of Ascot decided to concentrate the Group's future activities on the chemicals sector as announced on 17 November 1999. Two separate divisions have been formed - Ascot Fine Chemicals and Ascot Speciality Chemicals - to focus the Group's chemical assets in the most appropriate way. As a result of this decision, the Group will divest of its four small engineering businesses - Floform, WDS, Peter Stubs and Mitchell Cotts Transmissions. John Grant, Chief Executive, has expressed an interest in pursuing a management buy-out of these four businesses and will be leaving the Group with effect from the middle of the year. In the meantime, he will relinquish his day to day responsibilities within the Group whilst he formulates his offer. These divestments and more non-core assets which will be divested of over the next 18 months are in total expected to raise £150 million. This will enhance the Group's financial ability to look for acquisitions to complement both the Fine Chemicals and Speciality Chemicals interests, and to grow both businesses organically. Chairman, Howard Dyer commented:- 'We believe that there are opportunities to continue to build upon our world leading chemical businesses through organic growth and acquisitions. The focusing of financial and management resources will enable us to benefit from developments in both the chemical and pharmaceutical markets.'