Acquisition/Trading Update

Carr's Milling Industries PLC
19 July 2005


                         CARR'S MILLING INDUSTRIES PLC

             Acquisition of Animal Feed Business / Trading Update /
                         Preliminary Announcement Date

Acquisition

Carr's the Cumbria-based agriculture, food and engineering group, announces that
its 49% owned animal feed manufacturing associate company, Carrs Billington
Agriculture (Operations) Limited ('CBAO'), has acquired certain fixed assets
(mainly freehold land and buildings, plant and machinery), plus useable stocks
and trade debtors, of W&J Pye Limited (in administration) of Lancaster. Pye owns
four compound feed mills in the North West of England (at Blackburn, Lancaster,
Langwathby and Shrewsbury) and one blended feed mill (at Lancaster). Sales will
be effected through Carr's 51% owned subsidiary company, Carrs Billington
Agriculture (Sales) Limited ('CBAS').

The consideration for the fixed assets, stock and debtors is approximately £16.0
million and is payable in cash, financed out of CBAO's and CBAS' new bank
facilities.

Reflecting the considerable overcapacity in the compound and blended animal feed
industry , a process of rationalisation will be undertaken.

In the remainder of the current financial year, the acquisition will be
loss-making for the Group and generate an exceptional rationalisation charge. In
the first full year of operation, however, the acquisition is expected to be
earnings enhancing to the Group.

Trading Update

Carr's announces that its existing businesses remain on track to meet market
expectations.

As was indicated was likely in the Interim Announcement of 19 April 2005, our
food business, comprising three flour mills, is performing well. Deliveries to
the McVities biscuit factory in Carlisle, interrupted by the floods of 8 January
2005, resumed in April and are now at an increased level. The Meneba UK
business, with its two flour mills, acquired in November 2004, has been fully
integrated with Carr's Flour Mills, more than doubling previous volumes, and is
performing above expectations.

Also as we predicted, Agriculture is doing less well than last year . Compound
and blended feed volumes are lower than last year and margins continue to be
under pressure due to intense competition and over-capacity in the market place.
Low moisture feed block turnover is growing in the UK and steady in the USA.

Engineering is on track to make its first trading profit since 1999. Bendall's
move to a more efficient factory, at Kingstown Industrial Estate, Carlisle,
following the sale of the London Road, Carlisle site at an exceptional profit of
£4.0m in October 2004, is expected to be completed by the end of July 2005.
Carrs MSM is trading above expectations and is expanding its market.

Preliminary Announcement Date

Carr's 2005 Preliminary Announcement is expected to be made in the latter part
of November.


Enquiries:

Carr's Milling Industries PLC                                    01228-554 600
Chris Holmes (Chief Executive Officer)
Ron Wood (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7367 8851






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