Corporate Developments

Bodycote International PLC 03 November 2006 PRESS RELEASE EMBARGOED UNTIL 0700 HOURS 3 NOVEMBER 2006 Bodycote Corporate Developments Bodycote International plc, the specialist thermal processing and testing services company, is pleased to announce further progress in the implementation of its stated corporate strategy. As we are now late in the year, these acquisitions will not have a significant impact on 2006 sales and profits. The Group has acquired six new businesses: - - Brasimet, the market leading metallurgical services company with six plants in Brazil - Consult-us, a County Cork based analytical chemistry and microbiology laboratory - Prova, a Camberley situated pharmaceutical testing laboratory - Foodscan, a food analysis and microbiological testing company based in Glasgow - Norpath, a County Durham food and consumer products testing business - ISTAS (60% equity stake), Turkey's largest heat treatment group These investments advance Bodycote's strategy of expanding its Thermal Processing strategic business unit (SBU) into emerging economies and increasing the scale of its Testing SBU. The total cash consideration for the six acquisitions is £25.0m, with forecast 2006 sales of £31.8m and net assets of £10.9m. As we are in November, these acquisitions will not have a significant impact on 2006 sales and profits. The multiples paid remain within the previously indicated target range. In addition Bodycote has sold its Espoo, Finland coatings plant, which had sales of £1.1m in 2005. In 2007 Bodycote will also invest approximately £12m in heat treatment and testing greenfield start-ups in India, Singapore and Mexico to increase its geographical reach and help realise its strategy for growth in emerging economies. This expenditure is in addition to the previously announced investment in Wuxi, China and will be accommodated within previously indicated levels for capital spending by Bodycote in 2007. Bodycote expands into emerging markets (Brazil, Turkey, India, Singapore, Mexico, China) Brazil - Brasimet Bodycote has acquired Brasimet Comercio e Industria S.A., the premier metallurgical services company in Brazil, offering heat treatment, brazing, PVD coatings and testing services from six facilities. This acquisition will expand Bodycote's network into the major industrial centre for South America. Brazil has a cluster of automotive and aerospace industries, including many of Bodycote's existing global customers. Turkey - ISTAS Bodycote has completed the acquisition of 60% of the equity of ISTAS, Turkey's leading heat treatment business, which has facilities in Istanbul (2), Izmir, Bursa, Ankara and Adana. ISTAS is ideally placed to service the growing number of engineering manufacturers moving to Turkey and provides Bodycote with a footprint in an important developing market. India - Pune Bodycote announces the launch of an initial investment in India comprising a greenfield production facility with heat treatment and metallurgical testing capabilities in Pune, which will be the largest full service commercial heat treatment facility in India. Bodycote's rationale for entering the Indian market is principally driven by the existing Western customer portfolio and also by the strong growth of Indian economy which is currently running at over 9% per annum. Bodycote intends to continue its controlled expansion in India by adding five further facilities by 2011 to service the main manufacturing regions. Singapore - Thermal Spray Coatings and Testing Bodycote acquired Ceramet Plasma Coatings Limited, a leading supplier of thermal spray coatings, in April 2006. Bodycote is now establishing a facility in Singapore to provide these coatings for critical valves and rotors used in the oil and gas industry. Singapore is the Asian centre for oil rig construction and refurbishment. In the same facility Bodycote Testing will establish a laboratory to service its global oil and gas client base providing a full scope of metallurgical, forensic, corrosion, fracture mechanics and analytical testing capability. Mexico - Heat Treatment and Testing Bodycote is currently establishing a leading-edge technology centre for low pressure carburising (LPC) heat treatment in Silao, Mexico initially to support next generation GM transmission production in central Mexico. This follows on from a successful LPC investment in Livonia, Michigan. In addition Bodycote Testing has been awarded an outsourcing contract and is establishing a new laboratory to supply FRISA with materials testing services for its aerospace activities in Monterrey, Mexico. China - Heat Treatment and Testing Initial production has commenced in the Wuxi facility and is expected to be at sales of £3m in 2008. An increasing number of Bodycote's global aerospace and automotive customers have expressed interest in services from this facility. Bodycote plans to continue its controlled growth in China by adding five new facilities over the next five years. In addition the Testing SBU is evaluating various opportunities to establish service capability in China. Testing - acquisitions provide further scale Consult-Us Bodycote has acquired Consult-Us, based in County Cork, Ireland. Consult-Us is an analytical chemistry and microbiology laboratory that provides testing services to a wide range of food and environmental customers throughout Ireland. The acquisition means Bodycote Testing is able to offer its customers localised services over a wider geographic area. Prova Bodycote has acquired Prova, a pharmaceutical development laboratory based in Camberley, UK. The acquisition strengthens Bodycote's offer in the pharmaceutical industry with the addition of pre-formulation, formulation and regulatory services in the areas of licence applications, preparation of drug master files, technical files and quality summaries. Prova also takes Bodycote into the biotechnology market. The addition of regulatory advisory services will provide additional support to the existing Bodycote pharmaceutical client base. Foodscan Bodycote has acquired Glasgow based Foodscan Laboratories, which carries out chemical food analysis and microbiological testing for food manufacturers and retailers. Norpath Bodycote has acquired Norpath Laboratories, based in County Durham. Norpath is an analytical laboratory that provides research and consultancy services to a wide range of food and consumer products clients throughout the UK and Europe. These Testing acquisitions contribute to the strategy of expanding Bodycote's Health Sciences division both in the UK and internationally. John Hubbard, Chief Executive of Bodycote International said:- 'We are pleased that an additional six companies have been acquired by Bodycote and we extend a warm welcome to all the staff in these businesses. Along with the greenfield start-ups we have made a significant advance in our strategy to enter emerging markets with both Thermal Processing and Testing and to build the scale of our Testing business. Finally, we were delighted to be named winners of the 2006 Manchester Evening News, Business of the Year Award at a ceremony yesterday evening'. For further information, please contact: Bodycote International PLC Tel +44 (0) 1625 505300 John D. Hubbard, Chief Executive David Landless, Finance Director Financial Dynamics Tel: +44 (0) 207 831 3113 Jon Simmons James Ottignon This information is provided by RNS The company news service from the London Stock Exchange

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