Interim Management Statement

Melrose PLC
07 May 2008


Melrose PLC

For immediate release 7 May 2008


              Interim Management Statement ("IMS") and AGM update


Melrose PLC is today issuing its IMS as required by the Disclosure and
Transparency Rules of the Financial Services Authority. The IMS covers the
period up to 6 May 2008. At the AGM today Christopher Miller, Chairman of
Melrose, said:

"Financial position and performance

On 5 March 2008, Melrose published its audited results for the year ended 31
December 2007. The Company reported revenue from continuing operations of £344.0
million (2006: £323.6 million) and headline operating profit of £24.5 million
(2006: £19.2 million). A final dividend of 4.25 pence per Melrose Share was
proposed (2006: 3.75p).

In Dynacast, the management are continuing to look for suitable acquisition
opportunities (including in Eastern Europe) and to invest heavily in the fast
growing Far East markets, while maintaining their focus on achieving the highest
levels of operating efficiency in the business. Dynacast benefits from a strong
market share, well-diversified geographic and product sector exposure and
excellent cash generation qualities. The Melrose Directors are confident that
Dynacast will deliver another strong set of results in 2008.

In MPC, there has been a favourable start to 2008 and there remain further
opportunities in the UK industry afforded by the demise of certain competitors.
The Melrose Directors expect MPC to continue to build on its strong foundation
and to deliver another good performance in 2008.

In MVC, the operational improvement in 2007 has progressed. However, even
allowing for MVC's good position in a niche market, conditions in the US
automotive market are very difficult and this is currently offsetting good
improvement in the operations of the business and pricing recovery from
customers. With constant attention to the basics and the new plating line geared
up to meet the projected demands of the new programmes coming on stream in the
second half of 2008, the Melrose Directors expect a continuing improvement in a
difficult market place.

Acquisition of FKI plc

Further information relating to the proposed acquisition of FKI plc, including
the Circular and Prospectus which have been posted to shareholders can be found
on the Group's website www.melroseplc.net within the Press releases section.
These documents provide further information on both groups, the conditions
attaching to the offer and the expected timetable of principal events.


Summary

Overall, since the year end the Melrose Group has continued to trade in line
with the Melrose Directors' expectations. Subject to shareholder approvals and
the scheme of arrangement being completed the Board of Directors expect the FKI
transaction to be completed early July."


Resolutions

All the resolutions were passed unanimously at the AGM.


Enquiries

M: Communications 0207 153 1530

James HilI



                      This information is provided by RNS
            The company news service from the London Stock Exchange