Re Agreement

Reece PLC
7 May 2002


Date:    7 May 2002


Enquiries:

David Morgan, Executive Chairman
Reece plc                                          tel: [phone]


On behalf of Administrator, Grant Thornton,

Simon Rothschild/John Bick, Holborn                tel: [phone]


                                  Reece plc

                  Conditional Agreement Reached With Creditors

Reece plc ('the Company') is pleased to announce that it has reached conditional
agreement with its Creditors.



This meets the new Board's first objective on being appointed in February of
this year.



The Board estimates total liabilities to be in the order of some £1.5 million.
The agreement with the Creditors arranged by the Administrator is for a total
payment of £75,000, payable by four quarterly instalments. These payments are
inclusive of the current deficit of the Reece Final Salary Scheme, the Company's
largest single creditor.



The mechanism employed to satisfy the Creditors is a Trust Account into which
£75,000 is due to be paid and which will avoid any Company Voluntary
Arrangement.  The agreement to pay £75,000 is conditional only upon a re-listing
of the Company's shares and a Placing and Open Offer.



A fundraising would be necessary to effect the re-capitalisation of the Company
in order to make an acquisition. The Company is currently in discussion with a
number of potential targets and aims to release a circular to shareholders
within the coming months either pursuant to an acquisition or with regard to
raising sufficient working capital to complete an acquisition. It is intended
that the Company will reapply for a listing and be released from Administration
contemporaneously with one of the above events.



In the interim the Board intends to appoint new auditors who will undertake an
audit for the year ended 31st December 2001. In conjunction with the audit the
Board will instruct new lawyers to carry out a thorough legal review in
preparation for a future fund-raising exercise.



Finally, Glynn Reece has resigned from the Board with immediate effect in order
to be able to provide independent corporate finance advice to the Board in the
next phase of the Company's re-organisation.



ENDS





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