Re Agreement

Eleco PLC
15 July 2002

15 July 2002



                                   Eleco plc
                                   ('Eleco')

          Licence Agreement for marketing Consultec software and
 Option Agreement to purchase Consultec Group AB ('Consultec'), one of Sweden's
   leading construction software groups, as Eleco builds critical mass in the
                 growing construction software market


The Board of Eleco announces that Eleco has entered into a licence agreement
with Consultec for the marketing of Consultec software in the UK and other
English speaking markets including North America. Eleco has also entered into an
option agreement under which it has the right to acquire the Consultec Group.
Consultec is headquartered in Skelleftea Sweden and has a leading position in
construction software markets in Sweden and other Scandinavian countries.  The
acquisition under the option agreement will be subject, inter alia, to
comprehensive due diligence satisfactory to Eleco and approval by Shareholders
of Eleco in General Meeting.

Consultec is a leading developer and supplier of design, estimating, on-site
management and timber engineering software for the Scandinavian construction
market. It supplies construction software and related services to more than
1,000 customers in the Swedish construction industry.  Consultec's Staircon
software, a stair design and manufacturing program, which was released in 2001,
has already been installed by stair manufacturers accounting together for more
than 60 per cent of wooden stair production in the Swedish market. Consultec has
also developed a comprehensive Glulam software program in conjunction with the
Nordic Wood Project, an initiative financed by the Governments of Sweden, Norway
and Finland.


Licence agreement

Under the licence agreement for the Consultec software, which has an initial
term expiring in 2014, it is envisaged that Consultec's current software
portfolio and any future software products will be translated into English
following its acquisition and that the English version software programs will be
marketed by Eleco in the United Kingdom and other major English speaking
markets, including the United States. An initial licence fee of SEK 15,000,000
(approximately £1,065,000) is payable in cash in three annual instalments of SEK
5,000,000 commencing on 30 July 2002 with a royalty of 5% on sub-licence and
maintenance fees received by Eleco, payable from 1 August 2004.



Option agreement

Under the option agreement Eleco may acquire the entire issued share capital of
Consultec Group AB at any time before 31 December 2002 at a consideration
comprising SEK 28,500,000, equivalent to approximately  £2,025,000, payable in
cash on completion and the allotment to the vendors, credited as fully paid, of
8,405,660 new ordinary shares of 10p each. At the current exchange rate and
share price, the consideration would be equivalent to approximately £3,664,000.
The Consideration Shares will rank pari passu with the existing issued ordinary
shares of Eleco except that they will not rank for dividends paid by Eleco in
respect of the year ending 30 June 2002. The vendors will enter into agreements
whereby they will retain the consideration shares for a minimum period of two
years with at least 50% to be held for at least a further year thereafter. The
cash consideration will be financed from medium term bank facilities.

It is proposed, should the option be exercised by Eleco, that Mats Lovgren, the
President of Consultec will join the Board of Eleco as Chief Executive of
Eleco's software interests, which following the acquisition would comprise
Consultec, MBA Computing and Forma Communications.

Profits before tax of Consultec for the year ended 31 December 2001, the date of
its last audited accounts, amounted to SEK 2,800,000 equivalent to approximately
£199,000 on turnover of SEK 49.0 million, approximately £3.5 million.  Net
assets at 31 December 2001 amounted to SEK 13,557,000, equivalent to
approximately £963,000.

Consultec's headquarters are in Skelleftea; it also has branches throughout
Sweden, from which its software is supported by a team of specially trained
'software coaches'. More than 25 per cent of Consultec's income is derived from
recurring fees from software licenses. The remainder is derived from the
provision of support services and sales of new licence software programmes to
new and existing customers. Consultec has a total of 53 employees.

The Board of Eleco regards the software licence agreement and the proposed
acquisition of Consultec as key in its strategy of achieving critical mass in
the developing market for design and procurement software for the construction
sector. It attributes the recovery in the performance of Eleco's building
components businesses in part to the role which support software has played in
achieving production efficiencies and market penetration. Consultec already has
a leading position in the Swedish market and, as part of the Eleco Group, it
will have an excellent opportunity to penetrate English-speaking markets with
its outstanding software.

Mats Lovgren, President of Consultec, says 'The closer association with Eleco,
with whom we have worked successfully in recent years, means that Consultec can
expand its operations internationally by adapting its products for the
English-speaking markets.'

John Ketteley, Executive Chairman of Eleco says 'Consultec is held in the
highest regard by architects and other professionals in the construction
industry in Sweden and its construction software products have been highly
successful in that market.  We look forward very much to working with Consultec
to repeat that success in international markets.'

Further information on progress will be sent to shareholders in due course.

Enquiries to:

John Ketteley, Executive Chairman                 Tel: [phone]
Eleco plc                                         [e-mail]

David Dannhauser, Finance Director                Tel: [phone]
Eleco plc                                         [e-mail]

Tarquin Edwards/Simon Rothschild                  Tel: [phone]
Holborn




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