Acquisition

Plastics Capital PLC
14 March 2008


For Immediate Release                                              14 March 2008


                              Plastics Capital Plc
                     ('Plastics Capital' or the 'Company')

                   Acquisition of Palagan Limited ('Palagan')


Plastics Capital Plc (AIM;PLA), a fast-growing acquisitive plastics products
manufacturer focused on proprietary products for niche markets, is pleased to
announce the acquisition of Palagan and its associated companies, located in
Dunstable, Bedfordshire, for total consideration of £6.4m. The acquisition is
being funded from Plastics Capital's existing cash resources together with an
increase in senior debt facilities from Royal Bank of Scotland, whilst £0.5m of
the consideration will be deferred for 2 years.


Palagan is a long established producer of high performance film packaging
solutions. Palagan customises its products to between 4,000 and 5,000 different
specifications. The ability to tailor products to customers' requirements and
turn design solutions into in-line automated production is a key success factor
and accounts for Palagan's marketplace success.


Turnover for the year ended 30 October 2007 is £8.8 million. Sales have
increased at a rate of 6.4% p.a. over the last seven years. In the financial
year to 30 October 2007, Palagan had audited EBITDA of £1.07m - these accounts
included certain costs that would not be continuing under Plastics Capital's
ownership. Net assets acquired amount to £3.5m at completion. Palagan employs 40
staff and has a customer base of 500, with the largest customer accounting for
4.5% of sales.


The Board of Plastics Capital intends to continue operating Palagan as a stand
alone subsidiary of the Company. The current owner and founder, Graham Taylor,
will be retiring, but the business has an ambitious and capable management team
who will continue to operate Palagan as part of Plastics Capital.


Since its interim results reported in December, Plastics Capital has traded in
line with expectations. Certain adjustments have been made to the
rationalisation programme relating to the integration of Channel and Trimplex,
but the net financial impact of this is expected to be neutral. Also, the recent
strengthening of the Euro will, if it continues, lead to a translation loss at
31 March year end, but due to the Group's hedging strategy there will be a
compensating benefit for trading performance in the medium term.


Faisal Rahmatallah, Chairman and Chief Executive, commented:


'This is an exciting acquisition for Plastics Capital. It is a profitable
business with strong organic growth and an attractive acquisition multiple. We
expect the acquisition to be earnings enhancing in the first year. The film
packaging market is full of opportunity for a flexible, innovative and
technically adept manufacturer like Palagan. The acquisition fits our strategy
as explained at IPO and is in line with our strategy of being a fast-growing and
acquisitive Group.'


For further information, please contact:

Plastics Capital                                               0207 326 8423
Faisal Rahmatallah / Nick Ball

Cenkos Securities plc
Stephen Keys / Elizabeth Bowman                                020 7397 8924

Buchanan Communications                                        0207 466 5000
Richard Darby / Susanna Gale / Christian Goodbody


Notes to Editors

Plastics Capital successfully floated on AIM on 3 December 2007 and undertook a
share for share exchange to acquire Plastics Capital Trading Limited with its
subsidiary undertakings on 6 December 2007.


Plastics Capital is a consolidator of plastics products manufacturers focused on
proprietary products for niche markets. The Group has factories in the UK, an
assembly operation in Thailand and sales offices in the US and Japan.
Approximately 70 per cent. of sales are exported to countries worldwide.
Production is concentrated in the UK where significant engineering know-how and
automation underpins the Group's competitiveness.


Further information can be found on www.plasticscapital.com




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