Accounting Irregularities Found at Ketema

Senior PLC
3 December 1999

                             Senior plc ('Senior')
                                       

The  Board  of  Senior announces that it has uncovered a number of  accounting
irregularities at its US aerospace subsidiary, Ketema.

These  irregularities  relate to two principal areas.   First,  following  the
installation of a new computer and accounting system at the end  of  1998,  an
over-valuation  of inventory has become apparent in relation to  non-recurring
and  other  engineering costs arising on long term contracts,  much  of  which
relates  to  1998  or earlier.  Secondly, and to a lesser  extent,  sales  and
profits  on  a  major  contract have been recognised prematurely.   The  Board
believes that the cumulative effect of these issues on Ketema's profits is  in
the  range  $22  million to $26 million, of which $14 million to  $17  million
relates to prior financial years.  A full investigation is underway into these
irregularities to confirm the exact scale of the financial impact.

In view of this new information on Ketema's profitability, immediate action is
planned  to  reduce  Ketema's cost base significantly, including  a  headcount
reduction  of 50 people. Ketema has a strong order book and the Board  remains
confident about its viability and prospects.

These  issues relate solely to Ketema, do not impact on the rest of the  Group
and do not affect the Group's cash position.

The  Board of Senior also announces that profits for 1999 are now expected  to
be   approximately   £7   million  below  previous  expectations,   of   which
approximately  £5  million  relates to the effects of  the  Ketema  accounting
issues  up  to  the  last internal balance sheet date of 31 October  1999  and
approximately £2 million reflects an updated view of trading at Ketema and  in
the rest of the Group.

Following  its initial review of next year's business plan for each  Division,
the  Board's profit expectations for the Group for 2000, which will include  a
full  year's  contribution from the recent acquisitions of  Pathway  and  Cork
Industries, are unchanged despite Ketema's reduced profitability.

The  Board intends, in conjunction with its financial advisers, Schroders,  to
carry  out  a  review of the Group's strategic options to maximise shareholder
value.


Enquiries

Senior                                            01923 775547
Andrew Parrish, Group Chief Executive                         
Terry Garthwaite, Group Finance Director                      
                                                              
Finsbury                                          0171 251 3801
James Murgatroyd                                              
Morgan Bone