Acquisition

M. P. EVANS GROUP PLC ("MPE" or `'the Group'')) Purchase of Australian beef-cattle property The MPE board is pleased to announce that contracts have been exchanged with regard to the Group's acquisition of Flinton Station ("Flinton") for a total of A$7.5 million (approximately £3.2 million at the current rate of exchange), with settlement scheduled for 31 March 2006. The acquisition will be financed by way of debt. Flinton comprises 7,012 hectares and is contiguous with the Group's existing beef-cattle "growing'' property, Woodlands, which is some 120 kilometres north west of Goondiwindi in Southern Queensland. It will be run in conjunction with Woodlands, with the cattle being fed on a combination of grass and forage crops. The aggregation will comprise 19,412 hectares. Pasture and arable improvements on Flinton have, by and large, been completed and minor improvements to the infrastructure will be required. The pasture improvements on Woodlands too have been completed, but only more recently, and will not be fully mature for another one to two years, depending upon the weather. By that time, it is expected that a minimum of 10,000 head of cattle will be able to be turned off each year from the aggregation. The increased area, which will be managed by the present manager of Woodlands, Michael Wright, will permit additional economies of scale to be achieved. The aggregation has recently been valued at A$17.0 million (approximately £7.2 million at the current rate of exchange) and it is likely that this value will increase as the benefits are received from the recent pasture improvements referred to above . The Group's other investment in Australia comprises its 27.92% interest in The North Australian Pastoral Company which owns close to 200,000 head of beef cattle. This shareholding has been acquired over the past eighteen months at a cost of A$34.0 million (approximately £14.5 million). Peter Hadsley-Chaplin, Joint Managing Director, said, "This acquisition is an excellent extension of Woodlands and represents a further step in our strategy of developing our Australian beef-cattle interests alongside our investment in Indonesian oil-palm plantations." Enquiries: M.P Evans Group PLC 01892 516333 Peter Hadsley-Chaplin, Joint Managing Director Hudson Sandler 020 7796 4133 Andrew Hayes
UK 100

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