Change to Board of Directors

Associated British Engineering PLC 1 June 2000 Associated British Engineering plc announces the resignation of Mr M J Barry, Group Chief Executive, and Mr P I Janardanan, the Managing Director Of the Middle East Operations with effect from 31 May 2000. The plan set out in the circular dated 5th November 1999, to shareholders for the sale of the Middle East operations and the withdrawal from Catering Equipment is well on the way to completion and the group is now in a net cash position. The Board is considering a number of proposals for the future direction of the Company and will communicate further with shareholders as soon as firm plans have been formulated. Mrs K M Hill Finance Director