Disposal

Reece PLC
8 December 2000


DISPOSAL OF APP DIVISION


The  Company  is  pleased to announce that  its  wholly  owned
subsidiary,  Service  (Engineers) PLC ('Service  (Engineers)')
has  today  entered  into  a  conditional  sale  and  purchase
agreement  for  the disposal of the APP Division  to  Cavalier
Technical Services Limited.  Because of the relative  size  of
the  disposal the agreement is conditional, inter  alia,  upon
the  approval of ordinary shareholders.  A circular  convening
the  necessary Extraordinary General Meeting will be  sent  to
shareholders in due course.

The  consideration  payable under  the  agreement  amounts  to
£352,000  of  which £282,000 is payable in cash on  completion
with  the balance of £70,000 (subject to subsequent adjustment
by  reference to the net asset value on completion as detailed
below) payable in cash three months after the completion date.
Completion is expected to occur in January 2001.

The  consideration is subject to adjustment depending  on  the
net asset value on completion. To the extent that the value of
the  net  assets  being disposed of less the sum  of  £200,000
differs  from  the sum of £552,000 the consideration  will  be
adjusted by an amount equal to the difference.  As a result of
this,  the  transaction is expected to result  in  a  loss  on
disposal of some £200,000.

The  APP  division is a manufacturer of exterior grade plastic
skinned  door infill panels and ancillary products, comprising
foam  and  non-foam filled bow window canopies and  decorative
glass.   The division is well established and serves both  the
UK  and  French  window and door industry with  a  substantial
portion of sales exported.  Principal manufacturing techniques
include   vacuum  thermoforming,  laminating  and  customising
products to individual order.  The APP Division operates  from
premises  of 2,800 square metres located in Kent and currently
employs 32 people.

During  the year ended 31 December 1999 the APP Division  made
operating  losses  of  £21,000 (after management  charges  and
exceptional administrative expenses of £84,000) on turnover of
£2.8 million.  At that date it had net assets of £551,000.  In
the  half  year  to  30  June 2000, the division  reported  an
unaudited  operating  profit of £64,000 on  turnover  of  £1.5
million.

The  net sale proceeds will be applied in reducing the Group's
indebtedness.