Profitability Improved by Disposal of Subsidiaries

Alumasc Group PLC 7 December 1999 THE ALUMASC GROUP plc Disposals of Crew Stainless & Special Alloys and Thermex Industries Alumasc, the premium engineering and building products group, announces that it has recently disposed of Crew Stainless & Special Alloys and Thermex Industries. These disposals complete the restructuring programme announced in August 1999 which in aggregate has generated cash and, through the elimination of their trading losses, has significantly improved the profitability of the ongoing group. The business and certain operating assets of Crew, a stainless steel profile cutting business based in Birmingham, have been sold to its management. Of the businesses comprising Thermex Industries, the business, plant and stock of Halesowen based Express Heat Treatments Limited have been sold to the Folkes Group plc, the business, plant and stock of Birmingham based ADI Limited have been sold to a UK subsidiary of Hulverhorn, Eisengiesserei GmbH & Co KG of Bocholt, Germany, and the remaining Thermex Industries site at Halesowen has been closed. Full provision was made for discontinuance costs and the impairment of the value of fixed assets and goodwill relating to these discontinued businesses in the group's financial statement at 30 June 1999. The consideration to be received for these assets will be approximately £0.8 million in cash, slightly in excess of their written down value at 30 June 1999. These businesses made an operating loss before tax of £1.0 million in the year ended 30 June 1999. Enquiries: The Alumasc Group plc 01536-383844 John McCall (Chairman and Chief Executive) Bankside Consultants Limited 0171-220 7477 Charles Ponsonby