Disposal

Melrose PLC
14 May 2007


Melrose PLC

For immediate release 14 May 2007

                                  Melrose PLC

               Completion of the disposal of McKechnie Aerospace

Further to the announcement on 23 March 2007, Melrose PLC ("Melrose") announces
the completion of the disposal of McKechnie Aerospace to a company controlled by
investment funds managed by JLL Partners for US$850 million plus the assumption
of US$5.6 million of indebtedness.

Clearance has been obtained from the Pensions Regulator for the disposal and the
proposed return of capital to Melrose shareholders. Pursuant to this Melrose has
agreed with the trustees of the McKechnie Pension Plan ("the Plan") to guarantee
the ongoing funding of the Plan. Together with certain of its subsidiaries
Melrose will make a combined payment of £20 million into the Plan on completion
and will make further payments totalling £18.3 million (plus PPF levy and
administration costs) by the end of April 2010. These payments are as set out in
the circular to Melrose shareholders dated 13 April 2007 and are calculated to
eliminate the Plan's deficit in Melrose's 2006 annual accounts.

It remains the intention of the Melrose board to return approximately £200
million to shareholders and it is anticipated that the circular requesting
shareholder approval will be sent to shareholders in due course.


Enquiries
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