AGM Statement/ Results of Mtg

Associated British Engineering PLC
17 September 2001


Annual General Meeting Statement and Results of Meeting

The year has started slowly in our original diesel business but this is in line 
with previous years. We are pleased to report that Kelvin has been fully 
integrated and its sales have performed according to our expectations. 
Unfortunately, we were unable to complete the restructuring of the 
remanufacturing division prior to the 2001 year end and therefore the losses 
have continued into the current year. We are continuing to monitor the position 
and are still aiming for a profitable second half.

We have made considerable headway in reducing head office costs. However overall
we expect to report a loss for the six months ending 30 September 2001.

We have had questions from Preference shareholders regarding the payment of 
dividends. Until we are profitable it is not possible to provide a positive 
answer and as the dividends on these shares are now 6 months in arrears the 
Preference shareholders can vote at the Annual General Meeting.

The 7% Preference shares are not redeemable and therefore can not be easily 
dealt with. The 8% are redeemable and we are currently exploring whether we 
could have a small issue of ordinary shares with a view to using the proceeds to
redeem the 8% Preference shares. The Board has not made a decision but believes 
that if this can be achieved it would be in the interest of shareholders to 
simplify the corporate structure.

All resolutions at today's Annual General Meeting were passed unanimously. 

Brewin Dolphin Securities Limited has today resigned as stockbroker to the 
company.

17 September 2001

Enquiries:

Mr R A Pearce Gould (Chairman)
Mrs K M Good (Finance Director)

Tel: [phone]