Further Strategic Developments

Burmah Castrol PLC 24 November 1999 BURMAH CASTROL : FURTHER STRATEGIC DEVELOPMENTS Burmah Castrol plc ('Burmah Castrol'), the international specialised lubricants and chemicals group, announced today the further expansion of its Fosroc Mining ('Mining') business through a series of investments totalling £4.5 million. These developments support Mining's strategy of growth through geographic expansion and broader market penetration. * The acquisition of Ventmine/Tecrete Group of companies, based in Australia, who are the leading provider of ventilation structures and services to the Australian underground coal mining industry * The acquisition of the mining business of MCC, the leading supplier of cement capsules to the South African mining industry serving major gold and platinum producers such as Anglo American. * The acquisition of 70 per cent of Polymer Systems Technology, a resin capsule manufacturing business in the Kuzbass region of Russia, supplying mines with resin capsules, cementitious products and strata injection materials. Mining is the leading supplier of chemical anchoring systems to the world's mining and tunnelling industries. Its product range includes resin capsules, specialist cements and organic injection grouts for use in group support, water stopping and ventilation systems in both mining and tunnelling. These investments will enable Mining to expand its product and service offering to existing markets while continuing its global geographic expansion. Opportunities for cost savings exist in both manufacturing and administration. Geographically, these developments allow Mining to pursue the significant growth opportunities offered by the mining and tunnelling markets worldwide. The Russian investment illustrates the strategy of establishing a local manufacturing presence to achieve significant market penetration by the introduction of a wider product range to that market. Tim Stevenson, chief executive of Burmah Castrol, comments: 'These developments support Burmah Castrol's objective of strengthening our businesses with investments which round out our existing operations. It is consistent with our aim to build on those businesses that can sustain a leading global position in their specialised markets, as part of our strategy to create shareholder value.' For further information, please contact: James Alexander, Corporate Affairs director, Burmah Castrol plc 01793 452006 Sharon Ostaszewska, External Relations, Burmah Castrol plc 01793 452946 Rachel Hirst/Harriet Keen, Hogarth Partnership Limited 0171 357 9477 A copy of this release plus further company information is available on our website: www.burmah-castrol.com Notes to Editors: Note 1 Burmah Castrol businesses market specialised lubricant and chemical products and services on a worldwide basis. The group has a turnover close to £3 billion and operating profits of £255 million. It has over 150 subsidiaries operating in some 55 countries and employs just under 20,000 people. Burmah Castrol is based around a series of international businesses, each focused on the specific requirements of its own market place but sharing common characteristics. Four of the group's businesses trade under the Castrol brand name and the remaining businesses operate in speciality chemicals. Note 2 Following the acquisition of Fosroc, as part of the Foseco group of companies, the Mining business was formed as a separate specialist division in early 1997. Note 3 The Mining product range includes the following: Resin capsules: a two component chemical 'glue' for anchoring rock bolts in the roof of mines. The high tech alternative to cement or mechanical systems, with its main advantage being the high set speed - c.10 seconds. Special cements: a Fosroc invention which mixes a number of components to give powder with very high foaming characteristics when mixed with water. Used in bags to support mine roofs, in bulk to fill cavities and to build ventilation walls. Organic injection grouts: these are dominantly based on PU and are injected under high pressure to reinforce broken rock. Heavily used in Europe and in very difficult conditions worldwide.

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