Disposal of Bendalls

Carr's Milling Industries PLC
11 October 2004



                         CARR'S MILLING INDUSTRIES PLC

        £5.3 MILLION DISPOSAL OF BENDALLS ENGINEERING'S SITE IN CARLISLE

Carr's, the Cumbria-based agriculture, food and engineering business, announces
that it has completed the disposal of its site at London Road, Carlisle, where
Bendalls, its high integrity welding business, is based. Bendalls will relocate
to the Group's newly acquired site at Kingstown Industrial Estate, Carlisle, in
or around August 2005.

The cash consideration receivable by Carr's is £2.6 million . In addition, the
purchaser has committed to build a new 55,000 sq ft factory for Bendalls at
Kingstown Industrial Estate, which is expected to cost up to £2.7 million,
bringing the total consideration to £5.3 million. The cash consideration will be
used to equip the new factory and for general working capital purposes.

The total book value of the net assets disposed is £0.8 million. Accordingly,
the profit on disposal is expected to be approximately £4.5 million, which will
be accounted for as an exceptional gain in the current year to 3 September 2005.

Bendalls will remain operating from the London Road site until the completion of
the new factory and the equipping thereof to its own specifications at a cost to
it of approximately £0.75 million, which is expected to be in August 2005.

The Directors believe that the change in location will enable Bendalls to
operate from a more efficient factory.

Chris Holmes, Chief Executive of Carr's, commented; 'The completion of the new
Bendalls facility on Kingstown Industrial Estate will remove many of the
barriers which have historically prevented Bendalls from expanding. This move is
the result of a three year project which will benefit Bendalls, its customers
and its employees.'

Enquiries:

Carr's Milling Industries PLC                                    01228-554 600

Chris Holmes (Chief Executive)
Ron Wood (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166





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