Acquisition in Germany

8 August 2011 

Umeco plc

Advanced Composite Materials Acquisition in Germany

In its first acquisition since divesting its Supply Chain activity to focus on its higher growth advanced composites business, Umeco plc ('Umeco') announces today that its German subsidiary Umeco Composites GmbH has purchased certain of the assets of Fenotec Ges.i.L ('Fenotec') from the administrator for the cash sum of €2.2 million (c£1.9 million).

The assets purchased, which are located in Beelitz near Berlin, comprise freehold buildings and high quality production equipment which will be used to manufacture Umeco's range of prepreg advanced composite materials. Umeco will employ eleven of the former employees of Fenotec.

Fenotec was placed into administration in December 2010 shortly after investing €5 million in new buildings and machinery in a failed attempt to enter the prepreg market. Its failure was caused by a shortfall in sales revenues due to the lack of an industry recognised range of products. Umeco expects to quickly add much needed additional volume by manufacturing in Beelitz its own established range of prepreg materials. It will also distribute from this facility its wide range of structural and process materials for the advanced composites industry.

Umeco's existing European prepreg facilities are in the UK and this acquisition provides both additional prepreg manufacturing capacity, and a distribution base in Continental Europe that will significantly reduce lead times to its customers in Germany and Southern and Eastern Europe.

Umeco also announces today that it has been awarded €1.2 million of new business by a customer in Germany. This contract, which is for prepreg materials used in the manufacture of advanced composites components, is expected to be fulfilled over the next 12 months.

Andrew Moss, Chief Executive, said:

 "The acquisition of the Fenotec assets provides an excellent opportunity for Umeco to get closer to our customers in Continental Europe and to expand our manufacturing capacity at a time when the composites industry is enjoying significant growth. The equipment we are purchasing is virtually brand new, of a very high quality and alleviates the immediate term need to expand capacity at our existing facility in Manchester"

For further information please contact:

Umeco plc Tel: +44 (0) 1926 331 800

Andrew Moss, Chief Executive

Steve Bowers, Finance Director

www.umeco.com

Tulchan Communications Tel: +44 (0) 207 353 4200

Christian Cowley

Lucy Legh

Notes to Editors:

Further information on Umeco plc

Umeco plc ('Umeco') is an international provider of advanced composite materials primarily to the aerospace & defence, wind energy, recreation and automotive industries. Revenue from continuing operations in the year to 31 March 2011 was £207.4 million and these operations had 863 employees in manufacturing and distribution operations in the UK, Europe and the USA.

Umeco is managed through two business streams:

- Structural Materials - development, manufacture and supply of advanced composite materials; and

- Process Materials - development, manufacture and supply of vacuum bagging materials.