Completion of Acquisition

Embargoed: 0700hrs 14 October 2004 Avingtrans plc (the 'Company') Completion of reverse acquisition of Metalcraft and readmission of shares to Aim Further to the announcement on 15 September 2004, the Avingtrans plc board is pleased to announce that the acquisition of Stainless Metalcraft (Chatteris) Limited ('Metalcraft') has been completed. Avingtrans plc also announces that, following the completion of the acquisition of Metalcraft all of the Company's shares, being 14,626,086 ordinary shares of 5p each, are today readmitted to trading on AIM. It was announced on 15 September 2004 that Avingtrans had agreed terms to acquire Metalcraft from Ferraris Group plc for a total consideration of £8.1 million. The acquisition was financed through an institutional placing by Bridgewell of 6,666,667 shares at a placing price of 60 pence per share, which raised £4 million (before expenses) and through additional debt facilities, which were provided by HSBC. In addition, Avingtrans announced simultaneously an open offer, made to qualifying shareholders on the basis of 1 new ordinary share for every 10 ordinary shares held at a price of 60 pence per share. Qualifying Shareholders were also able to apply for an excess of their pro rata entitlement. It was announced on 11 October that qualifying shareholders had subscribed for 545,615 ordinary shares, being 77.4% of the new ordinary shares offered under the open offer, raising £0.3 million, which proceeds will be applied towards the working capital requirements of the enlarged group. The acquisition of Metalcraft represents the continuation of the strategy of the Board of Avingtrans of growth through the acquisition of companies that are involved in areas related to precision engineering. The Board continues to actively seek acquisition targets, which they believe have a strong presence within a growing market sector, which have a track record of profitability and have a strong asset backing. The acquisition of Metalcraft follows the acquisitions of the spindle business of Boneham & Turner Limited in August 2003 and the acquisition of Crown (UK) Limited in May 2004. Crown manufactures housings and stands for roadside speed cameras and gantry and trackside poles for railway signalling. Background on Metalcraft Metalcraft is a producer of fabricated and machined products to major suppliers of diagnostic imagery and the European Scientific Community. Its products are made to a high technical specification and its customers include all of the major suppliers to the Magnetic Resonance Imaging ('MRI') market, thereby raising barriers to entry from potential competitors. It has a track record of profitability and cash generation in each of the last three years and made operating profit of £1.6 million (before non-recurring items) on turnover of £ 14.7 million in the 11 months to 31 July 2004, based on unaudited management accounts. In addition, Metalcraft has a strong asset backing and its assets include freehold property and 13 acres of land which has been acquired at its book value of £1.7 million and other tangible fixed assets with a book value of £2.1 million. It is estimated that overall MRI scan volume could increase at a compound annual growth rate of approximately 10% from 2002 to 2007 as a result of their advantages over other methods of scanning such as CT scanning. These include benefits to the patient in that the treatment is non-invasive, has reduced side effects and benefits referring physicians in that images are produced more quickly than through other methodologies. The Enlarged Group On an ongoing basis, Avingtrans will include four divisions, being the Jena Group (including Boneham & Turner Spindles), C&H Precision Finishers, Crown (UK) Limited and Metalcraft. The relative sizes of the divisions, indicated by historical performance, are as follows: Jena Group C&H Precision Crown (UK) Metalcraft 3 (including Finishers 1 Limited 2 Boneham & Turner Spindles) 1 Activity Design and Final polishing Manufacturer of Manufacturer manufacture and specialist housings and of fabricated precision finishing on stands for and machined ballscrews, aeroengine roadside speed products to supplier and turbine blades, cameras and major service compressor gantry and suppliers of provider of blades and trackside poles diagnostic precision vanes for the for railway imagery and splindles power signalling MRI generation industries Revenue (£m) 4.8 0.7 2.8 14.7 Operating Profit4 0.2 0.0 0.6 1.6 (£m) Employees 122 26 29 170 Notes: 1.Source: Management Accounts year to 31 May 2004. 2.Source: Management Accounts year to 31 December 2003. 3.Source: Management Accounts, 11 months to 31 July 2004. 4.Operating Profit stated pre goodwill charge where applicable. Avingtrans published an Admission Document related to the acquisition of Metalcraft on 15 September. Trading Update At its annual general meeting on 11 October 2004, Ken Baker, Chairman of Avingtrans, commented: 'Group trading over the past four months has been extremely encouraging. The acquisition of Crown in May last year has resulted in a 70 per cent. increase in group turnover and a 47 per cent. increase in group order intake. On a like for like basis trading in the group's subsidiaries, excluding Crown, showed an increase of 29 per cent. in group turnover and a 27 per cent. increase in order intake. In the first three months since Crown was acquired by the group, trading has been ahead of forecasts. 'The acquisition of Metalcraft, which is due to complete on 13 October 2004, will result in a further substantial increase in group activities. I am particularly pleased with both the strategic and the financial progress that Avingtrans has made in the past twelve months.' Contacts: Avingtrans plc Ken Baker, Chairman Steve Lawrence, Managing Director Tel. 01159 499020 Bridgewell Limited Greg Aldridge Nick Lovering Tel. 020 7003 3000 Hansard Communications Ben Simons Tel. 020 7245 1100

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