Disposal discussions

Renold PLC
26 June 2006


Renold plc

Disposal discussions


In line with the Board's strategy to focus the Group on the core activities of
the manufacture and sale of industrial chains, gears and couplings, the Board is
pleased to announce that it is in advanced discussions regarding the disposal of
the Group's Machine Tool business.

Renold is at an advanced stage of negotiations with Venture Private Equity
('VPE') whereby companies established by VPE will acquire the business and
certain assets of the Machine Tool business, and the appropriate employee
consultation process is about to commence.

The Board announced on 6 June 2006 that it is in separate discussions concerning
the potential disposal of the Group's Automotive business. It is intended that
proceeds from both potential divestments will be used to reduce Group debt.

As a consequence of these ongoing discussions, it is now anticipated that the
Group's preliminary results for the year ended 31 March 2006 will be announced
in mid July. The Board expects that improved second half performance across the
entire Group including Automotive and Machine Tools will result in underlying
operating profits being towards the upper end of current market expectations. An
update on current trading will be given when the preliminary results are
announced.

The Board of Renold will make further announcements regarding the progress of
these potential disposals as soon as it is appropriate.

For further information, please contact:
Robert Davies, Chief Executive - tel: [phone]
Tony Brown, Finance Director - tel: [phone]



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