Disposal

Carclo PLC 14 September 2000 CARCLO PLC Disposal of Wire Rope Business Carclo plc, the technical plastics group, announces the sale of its Brunton Shaw wire rope manufacturing business to a newly formed subsidiary of Usha Beltron Ltd. to be called Brunton Shaw UK Ltd. Brunton Shaw UK Ltd. will purchase the operating assets of Brunton Shaw, excluding land and buildings, for cash at book value which is estimated to be £3.6 million at completion. Carclo will invest £320,000 in Brunton Shaw UK Ltd. in return for a 20% equity share. Carclo has retained the land and buildings of the business with a book value of £1.7 million which will be leased by Brunton Shaw UK Ltd. Usha Beltron Ltd., a publicly quoted Indian company, is a world leading supplier of wire rope. The sale agreement is conditional upon satisfactory consultation with the affected employees. In the year to 31 March 2000, the business being sold had sales of £8.4 million and generated an operating profit of £0.3 million. Linked with this disposal, and the continuing difficult trading conditions in the UK wire industry, Carclo intends to close the business of Lee Smith Wires at Ecclesfield, South Yorkshire. The cost of closure is estimated to be £1.2million. The divestment of the wire rope business of Brunton Shaw, the closure of Lee Smith Wires and the previously announced sale of John Shaw (NZ) Ltd. complete our withdrawal from low added- value wire operations. Carclo's specialist wire division, which now represents 25% of the group, is focused on niche products where we have strong world market positions, based on proprietary technology. For further enquires please contact: Carclo plc Ian Williamson, Chief Executive 01924 330 500 Chris Mawe, Finance Director Golin/Harris Ludgate Richard Hews 0207 253 2252

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Carclo (CAR)
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