Re Joint Venture

Carr's Milling Industries PLC 3 September 2001 3 September 2001 CARR'S MILLING INDUSTRIES PLC Announcement of joint venture arrangements The Board of Carr's Milling Industries PLC ('Carr's Milling'), the agriculture, food and engineering Group, announces that it has exchanged contracts to sell 49% of its wholly-owned subsidiary, Carrs Agriculture Limited, to Billington Agriculture Holdings Limited for a consideration of £ 400,000 to be satisfied on completion in cash. Carrs Agriculture Limited will change its name to Carrs Billington Agriculture (Sales) Limited ('CBAL (Sales) '). At the same time, CBAL (Sales) will acquire the trade and certain assets of Billington Agriculture Limited and the trade and assets of AF Feeds, for a total consideration of £995,000 to be satisfied on completion in cash. AF Feeds is the agriculture feed and farm inputs division of Carrs Billington Agriculture Limited (Carr's Milling's existing 50:50 joint venture with Edward Billington & Son Ltd). Certain divisions of Carrs Agriculture Limited (fertiliser blending, Caltech animal feed blocks, and the freehold properties) are transferring to a wholly-owned subsidiary of Carr's Milling prior to the sale. The freehold properties will be leased to CBAL (Sales) for £205,000 per annum. CBAL (Sales) will market and sell ruminant feed, blended fertilisers, farm machinery and other farm inputs from its 16 agricultural branches in the North of England and Scotland. The net assets being sold to Billington Agriculture Holdings Limited are £ 49,000. The profit attributable to the net assets being sold was £100,000 in the year ended 2 September 2000. Following the sale, the two shareholders of CBAL (Sales) will each invest £200,000 in the form of new share capital. The remainder of the sale proceeds will be used to reduce bank borrowings. Chris Holmes, Chief Executive of Carr's Milling, who will become Chairman of CBAL (Sales), commented: 'The cost savings derived from the formation of one sales company will help offset the impact of the reduced demand for animal feed in the North of England and South West Scotland resulting from Foot and Mouth Disease'. Enquiries: Carr's Milling Industries PLC 01228-528291 Chris Holmes (Chief Executive) Ron Wood (Finance Director) Bankside Consultants Limited Charles Ponsonby 020-7444 4166