Re Contracts

Bodycote International PLC 19 January 2001 Friday, 19th January 2001 PRESS RELEASE Bodycote concludes important contracts Bodycote International plc, the international metallurgical processing group announces that Bodycote Materials Testing Group Limited has secured two important contracts. PCC Structurals Inc. Bodycote Materials Testing, Inc., its U.S. division, and PCC Structurals, Inc., part of the Precision Castparts Corp., one of the largest investment castings suppliers to the aerospace market, have entered into a 10-year laboratory outsourcing contract, estimated to be worth $20m over 10 years. This is a further significant laboratory outsourcing development for Bodycote Materials Testing and follows on from long-term agreements struck earlier in the year with major UK clients and the conclusion of similar agreements in Canada. The scope for further laboratory outsourcing is substantial, and Bodycote is well positioned to capitalise on these opportunities. The Group is engaged in discussions with other interested parties in the UK, Europe and North America and hopes to see further progress in 2001. Bodycote Polymer AB in strategic collaboration with Chinese National laboratory Bodycote Polymer AB has signed a collaborative agreement with the China National Centre for Quality Supervision and Test of Plastic Products (NTSQP) at a ceremony in Beijing on November 24, 2000 attended by 150 representatives of the Chinese plastics industry, the China Bureau of Quality and Technical Supervision (CSBTS), and the Head of the Swedish Trade Council. Bodycote's Nykoping laboaratory has a global client base, working with resin producers, pipe manufacturers and utility companies. The use of plastic pipes is increasing rapidly in China, and in order to ensure good quality and long term reliability, it is necessary to conduct tests. So far, insufficient testing capacity has existed in China, hence the need for collaboration. The NTSQP has limited testing capacity, whilst Bodycote Polymer is able to cope with large volumes of long term tests (up to 4500 pipes on test simultaneously), therefore the collaborative partners will pool resources, with NTSQP initially concentrating on short term tests. The long term aim of the collaboration is to set up a joint venture laboratory in China, capable of performing both long and short term tests. Bodycote Materials Testing operates from 37 laboratories in the UK, USA, Canada, Norway, Sweden, Italy, the Netherlands and the Middle East. Commenting on this announcement, John Chesworth, Managing Director, said 'Outsourcing is an important source of growth for Bodycote and the agreements reached with PCC and the Chinese National Laboratory highlight the trend towards greater third party involvement in metallurgical processes around the World. Bodycote leads the global industry in this regard and it will continue to see considerable outsourcing contracts within all areas of its business.' Preliminary Results Bodycote will be making its preliminary results announcement for the year ended 31 December 2000 on 21 March 2001. For further information: For further information: John Chesworth, Managing Director Bodycote International plc Tel: 01625 505300 Scott Fulton Financial Dynamics Tel: 020 7831 3113

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