Result of Meetings, etc

ASSOCIATED BRITISH ENGINEERING PLC 1 September 1999 At the Annual General Meeting of the shareholders of ABE held today, all five resolutions put to the meeting were passed. As expected the two class meetings of shareholders holding more than 3,000 shares and of shareholders holding less than 3,000 shares were adjourned until 8 September at 2.30 pm due to the lack of quorum. At the Extraordinary General Meeting of all shareholders, the three resolutions were passed. The Chairman told shareholders that negotiations have been reopened for the sale of Danway, the Group's Middle Eastern trading subsidiary based in Dubai, in the United Arab Emirates. As shareholders were previously made aware negotiations for the sale of Danway had reached an advanced stage earlier this year but funds due to have been put into escrow prior to shareholders' consent being sought had not been forthcoming. Accordingly negotiations for the sale had been terminated. Following the substantial rise in the price of oil, the economic climate in the United Arab Emirates has improved. After consideration of other options the board has decided that it is in the best interest of shareholders to achieve a sale at this time and a number of potential purchasers have been identified. As far as trading in the current year is concerned, Danway is well up to budget, but the results for the UK subsidiaries are disappointing. The slow start to the year by British Polar Engines, which was referred to in the report and accounts, has continued. Sales in the Catering Equipment division are materially down on the levels of last year, partially because an important export contract has been delayed. The property at Havant previously occupied by Dawson-Keith is subject to an option agreement which expires in April 2000. It is now likely that this option will not be exercised and the board is therefore taking steps to sell the site.