Divestment of Machine Tools

Renold PLC
07 December 2006


7 December 2006

                                   RENOLD plc

                      Divestment of Machine Tools business

Renold plc is pleased to announce that, since its announcement on 23rd November
2006, it has agreed improved terms for the sale of certain assets and
liabilities of the Group's Machine Tools business to Venture Private Equity. The
transaction was completed on Wednesday, 6th December 2006.

The divestment of the Machine Tools business is in line with the Board's
strategy to focus on its core Industrial Power Transmission operations and
follows the disposal of the Automotive business which was announced in July this
year.

Total cash proceeds of sale are £6.1M comprising of an initial consideration of
£4.25M which was received on completion, a further £1.5M which is to be received
in instalments commencing in February 2007 and ending in November 2007 and
£0.35M from the net settlement of intra-group balances and cash balances
transferred. Trade and contract bonds and guarantees of £1.7M are expected to be
assumed or discharged by year end.

In addition, Renold has retained the right to a share of profits from any
subsequent development of the Milnrow property.

As at 30th September 2006, the value of the gross assets of the Group's Machine
Tools business was £5.2M and for the financial year ended 31st March 2006, the
operating loss of the Group's Machine Tools business was £0.1M.

Enquiries:

Renold plc
Bob Davies, Chief Executive                                        0161 498 4500
Peter Bream, Finance Director

Weber Shandwick Square Mile
Terry Garrett/Stephanie Badjonat                                   0207 067 0700




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