Proposed Reorganisation

Carr's Milling Industries PLC 03 March 2003 CARR'S MILLING INDUSTRIES PLC Proposed Reorganisation of Engineering Division Following three financial years of divisional losses, Carr's, the agriculture, food and engineering group, is to reorganise its Carlisle-based Engineering Division, which comprises Bendalls (high integrity welding), Keytor (mechanical & electrical engineering) and Hinds (commercial vehicle body building). As a result of worsening market conditions, it is proposed that, following consultation with the work force, Keytor will be further downsized, with a reduction in its work force of 34 of approximately two-thirds and the transfer of its remaining business to the Bendalls site in London Road, Carlisle during April 2003. It is proposed that Hinds' business, currently on three sites, will be consolidated onto the Keytor site in Kingstown Industrial Estate, Carlisle by the end of May 2003, with two of the sites in Durranhill Industrial Estate, Carlisle being sold. The proposed reorganisation of Keytor and Hinds is expected to reduce annual costs by £0.3 m, at a one-off cost of approximately £0.3 m. Notes for Editors: In the year ended 31 August 2002, Carr's reported an underlying Group pre-tax profit of £3.3 m, up 42.0%, on a Group turnover of £143.4 m, up 26.7. 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