Stmt re: Merger Discussions

Harrier Group PLC 05 October 2004 Harrier Group PLC Articon Integralis AG Discussions relating to the merger of trading operations It was announced on 29 July 2004 that the boards of Harrier Group plc ('Harrier') and Articon Integralis AG ('AIAG') were in discussions with a view to Harrier acquiring the business and certain assets forming the business of Integralis GmbH, to form Harrier Integralis PLC, a UK holding company which was to be admitted to trading on AIM. As this transaction was to be classified as a reverse takeover under the AIM Rules, Harrier's shares were suspended from trading on AIM pending the publication of an AIM admission document. The boards of both Harrier and AIAG continue to believe that the combination of their businesses makes sound financial and strategic sense. However, the proposed transaction structured as previously envisaged created a number of concerns amongst a significant minority of AIAG shareholders making it clear that they would not support that particular transaction. Nevertheless, the boards of Harrier and AIAG are now considering alternative methods of combining their businesses under different structures. Under active consideration are the following possible structures: •A recommended takeover offer for Harrier by AIAG. •The acquisition of the business and certain assets of Harrier by AIAG. •A recommended takeover offer for AIAG by Harrier. This transaction would, if completed, be classified as a reverse takeover under AIM Rules and therefore the current suspension of trading in Harrier's shares on AIM will continue. At present, the boards of Harrier and AIAG are not able to determine whether any of the above will be capable of being structured and agreed by them and their shareholders but undertake that they will report to their shareholders by not later than 1 November 2004 on progress made in this regard. In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, the company confirms that, as at close of business on 4 October 2004, it had in issue 29,310,365 shares of 1 pence each. The international Securities Identification Number for these shares is GB0008823493. Contacts: Jim Stoddart, Harrier Group plc 01256 760 081 Mark Silver, Articon Integralis AG + 44 118 930 6060 Juliet Machan, Articon Integralis AG +44 7768 283074 Adam Hart/Jonathan Marren, KBC Peel Hunt 020 7418 8900 This information is provided by RNS The company news service from the London Stock Exchange