Resistor Business Acquired

Halma PLC 6 March 2000 HALMA ACQUIRES RESISTOR BUSINESS Global Enhancement of Specialist Electrical Technology The Directors of Halma p.l.c. announce that on Friday 3 March 2000 the Group completed the purchase of the resistor business and assets of Cutler-Hammer from Eaton Corporation. Cutler-Hammer is the principal manufacturer of resistors for use in transportation and electrical controls and is based in Milwaukee, Wisconsin in the USA, Melton Constable, Norfolk in the UK and Airdrie, Alberta in Canada. Halma already has great strength in resistors, and the acquired business will be consolidated into existing operations. Cutler-Hammer's innovative resistor technologies will enhance the Group's in-depth technical expertise and extensive product range, especially in the areas of high voltage electrical distribution and rail transit. These products play key roles in ensuring the safe operation of national electrical and railway networks. Unaudited accounts for the year ended 31 December 1999 show sales of $10,642,000. The consideration is $7,710,000 in cash based on combined net tangible assets as at 29 February 2000 of $3,658,000. Stephen O'Shea, Halma Group Chief Executive commented, 'As I stated in the 1999 Annual Report, high power resistors are one of our strongest product areas. This acquisition, following the Mosebach purchase in the prior financial year, complements and builds upon that strength, particularly in our most important geographical markets. It brings important new technology and customer penetration in the areas of locomotive braking resistors and light transit braking resistors. In addition, Cutler-Hammer is one of the key global OEMs for resistor products and this allows us to become a supplier for their future resistor needs. This is an acquisition where we are able to bring our considerable intellectual capital to bear on a new group of related assets with a high probability of a very successful outcome.' Copies of this announcement may be obtained from the company's registered office for a period of 14 days and at the Company Announcements Office of the London Stock Exchange for two days from the date of this announcement. Press Contact: Mr Stephen R O'Shea Chief Executive, Halma p.l.c. Tel: +44 (0) 1494 721111