Disposal of European Starch Facilities

Tate & Lyle PLC Tate & Lyle announces that, following completion of consultation with the European and local works councils and other employee representatives announced on 9 May 2007, it has entered into an agreement with Syral SAS (a subsidiary of Tereos of France) for the sale of its starch facilities in the UK, Belgium, France, Spain and Italy (together 'the business'). The Belgian entity includes the head office, shared service centre and single billing entity in Aalst, Belgium ('SSC') which is excluded from the sale. The disposal is subject to antitrust approval in Europe and completion is expected by 30 September 2007 at the earliest. On completion, Tate & Lyle will receive a consideration of EUR 310 million (£209 million) subject to closing adjustments relating to cash, debt, working capital and capital expenditure. As set out in the Chairman's Annual General Meeting and Interim Management Statement published today, proceeds of the disposal are intended to be utilised as part of a share buy back programme. In the year to 31 March 2007, the business had total sales of £520 million and a profit before interest and exceptional items of £38 million. At 31 March 2007 the business had gross assets of £253 million and net operating assets of £184 million. The disposal is expected to result in an exceptional loss of approximately £20 million after restructuring costs. Iain Ferguson, Chief Executive, Tate & Lyle said, 'The sale of these starch facilities marks another important step in focusing Tate & Lyle's business on its value added strategy and reduces the impact of our exposure to volatile markets and to the EU sugar regime. I would like to take this opportunity to thank our employees at each of these facilities for their commitment and hard work over the years and wish them every future success.' Citi acted as financial adviser to Tate & Lyle PLC. For more information contact Tate & Lyle PLC: Mark Robinson, Director of Investor Relations Tel: 020 7626 6525 or Mobile: 07793 515861 Ferne Hudson, Head of Media and Public Relations Tel: 020 7626 6525 or Mobile: 07713 067433 About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable food and industrial ingredients. It uses innovative technology to transform corn, wheat and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, value added food and industrial ingredients, and citric acid. Tate & Lyle is the world number-one in industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company operates more than 60 production facilities in 23 countries, throughout Europe, the Americas and South East Asia. In the year to 31 March 2007, it employed 6,900 people in its subsidiaries with a further 2,300 employed in joint ventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additional information can be found on http://www.tateandlyle.com. SPLENDA(R) is a trademark of McNeil Nutritionals, LLC

Companies

Tate & Lyle (TATE)
UK 100

Latest directors dealings