Disposal of Site-Replacement

Carr's Milling Industries PLC 11 October 2004 Carr's Milling Industries PLC announcement issued today at 07.00 under 9073D was released under the headline 'Disposal of Bendalls'; this should have read 'Disposal of Site'. All other details in the announcement remain unchanged, as below. Monday 11 October 2004 CARR'S MILLING INDUSTRIES PLC £5.3 MILLION DISPOSAL OF BENDALLS ENGINEERING'S SITE IN CARLISLE Carr's, the Cumbria-based agriculture, food and engineering business, announces that it has completed the disposal of its site at London Road, Carlisle, where Bendalls, its high integrity welding business, is based. Bendalls will relocate to the Group's newly acquired site at Kingstown Industrial Estate, Carlisle, in or around August 2005. The cash consideration receivable by Carr's is £2.6 million . In addition, the purchaser has committed to build a new 55,000 sq ft factory for Bendalls at Kingstown Industrial Estate, which is expected to cost up to £2.7 million, bringing the total consideration to £5.3 million. The cash consideration will be used to equip the new factory and for general working capital purposes. The total book value of the net assets disposed is £0.8 million. Accordingly, the profit on disposal is expected to be approximately £4.5 million, which will be accounted for as an exceptional gain in the current year to 3 September 2005. Bendalls will remain operating from the London Road site until the completion of the new factory and the equipping thereof to its own specifications at a cost to it of approximately £0.75 million, which is expected to be in August 2005. The Directors believe that the change in location will enable Bendalls to operate from a more efficient factory. Chris Holmes, Chief Executive of Carr's, commented; 'The completion of the new Bendalls facility on Kingstown Industrial Estate will remove many of the barriers which have historically prevented Bendalls from expanding. This move is the result of a three year project which will benefit Bendalls, its customers and its employees.' Enquiries: Carr's Milling Industries PLC 01228-554 600 Chris Holmes (Chief Executive) Ron Wood (Finance Director) Bankside Consultants Limited Charles Ponsonby 020-7444 4166 This information is provided by RNS The company news service from the London Stock Exchange