Disposal

Hill & Smith Hldgs PLC
29 May 2001

                          SALE & LEASEBACK CUTS DEBT



In line with the its strategy to reduce net borrowings, the Board of Hill &
Smith Holdings PLC ('Hill & Smith' or the 'Company') is pleased to announce
that it has agreed with Lakelarge Limited ('Lakelarge') the sale and
leaseback of four Hill & Smith sites, Telford, Walsall, Smethwick and West
Bromwich.



Total consideration for the sale of the four properties to Lakelarge is £8.96
million, payable in cash on completion.  Hill & Smith has agreed to take a 20
year lease from Lakelarge on these sites at an annual rental of £0.93 million.




The transaction was completed on 25th May 2001.



The consideration will be used to reduce net borrowings of Hill & Smith.
Following the takeover of Ash & Lacy in November 2000, net debt peaked at £
78m.  When the cash is received in respect of the property sales outlined
above, the net debt position will fall to  £60m.



The aggregate net book value, as at 31 December 2000, of the properties sold
was £6.95million.




For further information, please contact:

Hill & Smith Holdings PLC                                   Tel:  [phone]
David Grove, Chief Executive
Howard Everett, Company Secretary

Rawlings Financial PR Limited                               Tel:  [phone]
Catriona Valentine






Note to Editors



Hill & Smith Holdings PLC, based in Bilston in the West Midlands, contains
companies operating in the fields of building and construction products,
fencing and barriers, steel stockholding, and galvanising services.



The sites are the Lygon Court in Halesowen, Joseph Ash Limited (Galvanising)
in Telford, Joseph Ash Limited in Walsall, Ash & Lacy Perforators Limited in
Smethwick, W & S Allely Limited in Smethwick, Ash & Lacy Building Products
Limited in West Bromwich and Bromford Iron & Steel Company Limited in West
Bromwich.