McBride PLC 1 June 2001 Friday, 1 June 2001 MCBRIDE PLC Disposal of Wrafton Laboratories Limited McBride plc ('McBride' or 'the Group'), the leading manufacturer of private label household and personal care products in Europe, announces today the exchange of contracts for the disposal of its 92.5% shareholding in Wrafton Laboratories Limited ('Wrafton') to Perrigo Company ('Perrigo') for a gross consideration of £28.3 million ('the Disposal') in cash of which £1.0 million will be held in escrow for 12 months in respect of warranty and indemnity claims. Completion will take place on or before 29 June 2001. The Disposal will generate an immediate cash inflow of approximately £25.6 million before expenses and an estimated exceptional profit on disposal of £2.5 million. Wrafton develops, manufactures and distributes an extensive range of wet and dry over-the-counter ('OTC') medicines and toiletries, including analgesics, antacids, cough/cold preparations, ointments, gels, throat remedies, toothpaste and topical medicines. For the 14-month period ended 30 June 2000, the business made an operating profit of £2.5 million on sales of £29.0 million. Wrafton's net assets at 30 June 2000 were £3.1 million. The company operates from a purpose built factory in Barnstaple, Devon and employs around 500 people. The Disposal follows the decision of the Board of McBride ('the Board' or 'the Directors'), announced on 2 June 2000, to review the Group's strategic options in order to maximise shareholder value. The Directors believe that the consideration for Wrafton reflects its long-term strategic value and its disposal will enable McBride to focus on its core household and personal care businesses. The proceeds of the Disposal will be used initially by McBride to reduce its debt and to meet existing commitments. Under the Disposal Agreement, McBride has agreed to assume responsibility for certain third party liabilities of Wrafton, which the Directors estimate to be £1.7 million. Also the Disposal Agreement incorporates a mechanism for adjusting the consideration upwards or downwards by reference to the difference between the estimated and actual net assets of Wrafton at completion. On 26 September 2000, McBride announced that it had received preliminary enquiries from interested parties concerning a possible offer for the Group. Discussions are continuing and whilst there is no certainty at this stage that any transaction will result, an announcement will be made as further developments occur. The Board believe that such discussions will not be impaired by the Disposal. In the meantime, the Board is continuing to explore further strategic options available to the Group in order to maximise shareholder value. ends Enquiries Financial Dynamics 020 7269 7140 Andrew Dowler/Fiona Meiklejohn


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