IFRS Statement

Spirax-Sarco Engineering PLC
12 July 2005




Spirax-Sarco Engineering plc                      Charlton House
                                                  Cheltenham
                                                  Glos. GL53 8ER

News Release                                      Telephone:  [phone]
                                                  Fax:  [phone]
                                                  www.SpiraxSarcoEngineering.com

                                                                  12th July 2005


   Restatement of primary financial information for 2004 under International
                         Financial Reporting Standards


Spirax-Sarco Engineering plc and its subsidiaries (the Group) has for the
accounting periods up to 31st December 2004 prepared its consolidated financial
statements under UK Generally Accepted Accounting Principles (UK GAAP).  From
1st January 2005, the Group is required by European Directives to report its
consolidated financial statements under International Financial Reporting
Standards (IFRS).

As part of this transition, the Group is presenting a restatement of its 2004
results under IFRS.  This will form the comparative to the 2005 Interim Report
and the 2005 Annual Report.

A summary of the effect of the restatement follows:-

                            Year ended 31st December 2004
                                                  Change in         Change in
                                        UK       Minorities Pensions (IAS 19)        Other IFRS
                                      GAAP         (IAS 27)                £m           Changes          IFRS
                                        £m               £m                                  £m            £m

Revenue                              325.8            (9.8)               nil               nil         316.0
Operating profit                      51.1            (2.5)             (1.0)               0.4          48.0
Profit before tax                     50.8            (1.8)             (0.7)               0.4          48.7
Basic EPS (p)                        43.4p              nil            (0.9p)              0.6p         43.1p
Net assets attributable to
shareholders                         178.0              nil            (27.0)              13.0         164.0


                             Six months ended 30th June 2004
                                                  Change in         Change in
                                        UK       Minorities Pensions (IAS 19)       Other IFRS
                                      GAAP         (IAS 27)                £m          Changes          IFRS
                                        £m               £m                                 £m            £m

Revenue                              157.7            (4.8)               nil              nil         152.9
Operating profit                      23.4            (1.1)             (0.4)              0.2          22.1
Profit before tax                     23.1            (0.8)             (0.3)              0.2          22.2
Basic EPS (p)                        19.6p              nil            (0.4p)             0.5p         19.7p
Net assets attributable to
shareholders                         168.5              nil            (30.7)              5.7         143.5


The principal changes from the transition to IFRS are:

Change in minorities
          
•    Reassessing control in minority interests resulting in a change in the 
     treatment of the Group's investments in India and Mexico on consolidation 
     from subsidiary companies to associate companies. Although there is a 
     reduction in 2004 sales of £9.8 million and in pre-tax profit of £1.8
     million, there is no change in EPS or net assets attributable to 
     shareholders.

Change in pensions
     
•    Recognising the deficit on defined benefit pension schemes on the balance 
     sheet and the higher income statement charge for pensions under IAS 19.  
     For the 2004 year £27.0 million of additional balance sheet net liabilities 
     have been recognised and the income statement charge (before tax) increases 
     by £0.7 million.

Other IFRS changes
          
•    Recording the cost of share options awarded to employees on a fair value 
     basis.  The 2004 income statement charge (before tax) increases by £0.4 
     million.

•    Ceasing goodwill amortisation (subject to annual impairment testing).  The 
     2004 income statement reflects the reversal of the £0.7 million charge 
     under UK GAAP.

•    Not accruing a liability for dividends that have not been declared or 
     approved at the balance sheet date.  Shareholders funds increase by £11.4 
     million at 31st December 2004.

•    Capitalisation of the development element of R&D expenditure under certain 
     circumstances.  Net intangible assets increase by £2.5 million (before tax 
     effects) at 31st December 2004.  Changes to the income statement are 
     immaterial.

•    Providing deferred tax on property revaluations.  This results in the 
     creation of a £1.8 million deferred tax liability at 31st December 2004.

The effect of the adoption of IFRS in respect of the Group's 2004 financial
statements is set out in detail in a report that can be downloaded from the
company's website at www.SpiraxSarcoEngineering.com.  Alternatively copies can
be obtained from the Company Secretary at Charlton House, Cheltenham, Glos. GL53
8ER.

The Group intends to announce the interim results for the six months ended 30th
June 2005 on Tuesday 6th September 2005.


Enquiries:

Marcus Steel                      -    Chief Executive
David Meredith                    -    Director Finance

Tel:           [phone]
Fax:           [phone]

www.SpiraxSarcoEngineering.com


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            The company news service from the London Stock Exchange