Re Joint Venture

Carr's Milling Industries PLC
3 September 2001



                                                              3 September 2001


CARR'S MILLING INDUSTRIES PLC


Announcement of joint venture arrangements


The Board of Carr's Milling Industries PLC ('Carr's Milling'), the
agriculture, food and engineering Group, announces that it has exchanged
contracts to sell 49% of its wholly-owned subsidiary, Carrs Agriculture
Limited, to Billington Agriculture Holdings Limited for a consideration of £
400,000 to be satisfied on completion in cash.  Carrs Agriculture Limited will
change its name to Carrs Billington Agriculture (Sales) Limited ('CBAL (Sales)
').  At the same time, CBAL (Sales) will acquire the trade and certain assets
of Billington Agriculture Limited and the trade and assets of AF Feeds, for a
total consideration of £995,000 to be satisfied on completion in cash.  AF
Feeds is the agriculture feed and farm inputs division of Carrs Billington
Agriculture Limited (Carr's Milling's existing 50:50 joint venture with Edward
Billington & Son Ltd).



Certain divisions of Carrs Agriculture Limited (fertiliser blending, Caltech
animal feed blocks, and the freehold properties) are transferring to a
wholly-owned subsidiary of Carr's Milling prior to the sale.  The freehold
properties will be leased to CBAL (Sales) for £205,000 per annum.



CBAL (Sales) will market and sell ruminant feed, blended fertilisers, farm
machinery and other farm inputs from its 16 agricultural branches in the North
of England and Scotland.



The net assets being sold to Billington Agriculture Holdings Limited are £
49,000.  The profit attributable to the net assets being sold was £100,000 in
the year ended 2 September 2000.  Following the sale, the two shareholders of
CBAL (Sales) will each invest £200,000 in the form of new share capital.  The
remainder of the sale proceeds will be used to reduce bank borrowings.



Chris Holmes, Chief Executive of Carr's Milling, who will become Chairman of
CBAL (Sales), commented: 'The cost savings derived from the formation of one
sales company will help offset the impact of the reduced demand for animal
feed in the North of England and South West Scotland resulting from Foot and
Mouth Disease'.



Enquiries:



Carr's Milling Industries PLC
                                            01228-528291

           Chris Holmes (Chief Executive)

           Ron Wood (Finance Director)



Bankside Consultants Limited


           Charles Ponsonby
                                              020-7444 4166