Acquisition

Hill & Smith Hldgs PLC
01 November 2006


Acquisition of Metnor Galvanizing

Hill & Smith Holdings PLC ('Hill & Smith' or the 'Company') announces that it 
has completed the purchase from Metnor Group PLC ('Metnor Group') of the issued
share capital of Metnor Galvanizing Limited ('Metnor Galvanizing') for a cash 
consideration of £6.53 million.  The consideration is subject to adjustment on 
finalisation of completion accounts.  Hill & Smith has also purchased from 
Moortime Limited, a subsidiary of Metnor Group, for a cash consideration of £3.2 
million, the freehold property which is occupied by Metnor Galvanizing.

Metnor Galvanizing, which operates from a site in Chesterfield, provides 
galvanizing and related services to the construction industry.

In the year ended 31 December 2005, Metnor Galvanizing made an operating profit,
before group management charges and restructuring costs, of £0.5 million.  At 
31 December 2005, the book value of the gross assets being acquired, including 
the freehold property, amounted to £5.2 million.

All the existing employees and members of the management team are remaining 
with Metnor Galvanizing following the acquisition.

The Directors of Hill & Smith believe that the acquisition will complement 
Hill & Smith's existing galvanizing capacity, and that there will be significant
synergies with Hill & Smith's other businesses.

David Grove, Hill & Smith's chief executive, commented:

'This acquisition of Metnor Galvanizing is a further demonstration of our 
commitment to investing in the Group's core businesses.  We are confident that 
it will be an excellent fit with Hill & Smith.'

Further information:
David Grove, Chief Executive
Hill & Smith Holdings PLC
Tel: [phone]

Edward Carter or Anna McNeil
Freshwater PR and Marketing
Tel: [phone]

End




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