Proposed Acquisition

Severfield-Rowen PLC 22 March 2005 22 March 2005 Severfield-Rowen Plc Proposed acquisition of Atlas Ward Holdings Limited ('Atlas') On 28 January 2005 Severfield-Rowen Plc (the 'Company'), the market leading structural steel group, announced that it had entered into an agreement on 27 January 2005 with Bank of Scotland ('BoS'), a major shareholder of Atlas, under which the Company was granted a right to acquire the entire issued share capital of Atlas (the 'Shares') for £1.21m in cash. On 22 March 2005 the Company exercised its right under the said agreement by making an offer for the Shares which BoS has irrevocably accepted and in respect of which BoS has undertaken to exercise its drag along rights in relation to all other shareholdings and shareholders in Atlas. Completion of the acquisition of the Shares is expected to take place within the next four weeks. Atlas, based at Sherburn near Scarborough in Yorkshire, designs, fabricates and erects structural steelwork principally for the distribution warehouse market and has a business, skill base and client profile which is complementary to that of the Company. Atlas is a major player in the UK market place and is a well known brand name within the industry. In the year ended 31 December 2004 Atlas had an unaudited turnover of approximately £35m with an estimated pre-tax profit for that year of £250,000 resulting in unaudited net assets of £1m. Whilst Atlas currently has a pension scheme deficit estimated at £4.8m as at 31 December 2004, no further benefits are being earned by members in the scheme. Commenting on Atlas, Peter Levine, Chairman, said: 'With a good name in the industry and with a complementary market place, client base, skill base and location, as well as potentially significant synergies, this is a very positive acquisition for Severfield-Rowen. 'Atlas, a well respected name in our industry, operates primarily in the distribution warehouse market. It complements, but is not in competition with, the Group's sectors of interest and has an extensive client base and a very experienced and skilled workforce. 'Atlas will benefit from our Group's commercial and financial strength and, as we integrate it with the Group in due course, we expect to make focused capital investment to upgrade technology and improve productivity and efficiency which are the hallmarks of Severfield-Rowen. 'Initial client reaction has been extremely favourable to the acquisition and to the anticipated investment in the Atlas business. 'The Group, on completion of the acquisition, will comprise four major brands within our industry. Severfield-Reeve Structures, Watson Structures, Rowen Structures, and Atlas Ward Structures.' Enquiries Severfield-Rowen Plc Peter Levine, Chairman Tel: 0113 246 9993 Financial Dynamics Richard Mountain Tel: 020 7269 7291 This information is provided by RNS The company news service from the London Stock Exchange