Pensions equalisation

6 April 2010

Low & Bonar PLC

Pensions equalisation

Low & Bonar PLC (the "Group"), the international performance materials group, and the trustee (the "Trustee") of the Low & Bonar Group Retirement Benefit Scheme (the "Scheme"), the occupational pension scheme established by the Group, instigated litigation against Mercer Limited (an adviser in respect of the Scheme) concerning the implementation of measures necessary to reflect the impact of the changes in normal retirement age for members of pension schemes following the "Barber decision" on 17 May 1990 by the European Court of Justice and the Scheme's consequent decision in 1991 to equalise retirement ages for men and women at 65 years. The Group and the Trustee believed that it was likely that additional funding would be required in respect of at least one of the Scheme's component sections as a result of suspected defects in the implementation of these measures and a provision of £5.8 million was held by the Group at 30 November 2009 for the purposes of its accounts to cover this and certain associated professional costs.

On 1st April 2010, the Court of Session in Scotland gave judgment that the Scheme was effectively equalised with normal retirement dates at 65 in 1991 and dismissed the action by the Group and the Trustee. The Company, together with its advisers, is considering the judgemnt and its response to it but it may lead to the reversal of some or all of the provision referred to in the previous paragraph.

For further information please contact:

Low & Bonar PLC +44 (0)20 7535 3180

Steve Good, Chief Executive

Kevin Higginson, Finance Director

Matthew Joy, Company Secretary

Hogarth +44 (0)20 7357 9477

Andrew Jaques / Rachel Hirst / Ian Payne