Proposed Reorganisation

Carr's Milling Industries PLC
03 March 2003



                       CARR'S MILLING INDUSTRIES PLC

               Proposed Reorganisation of Engineering Division


Following three financial years of divisional losses, Carr's, the agriculture,
food and engineering group, is to reorganise its Carlisle-based Engineering
Division, which comprises Bendalls (high integrity welding), Keytor (mechanical
& electrical engineering) and Hinds (commercial vehicle body building).



As a result of worsening market conditions, it is proposed that, following
consultation with the work force, Keytor will be further downsized, with a
reduction in its work force of 34 of approximately two-thirds and the transfer
of its remaining business to the Bendalls site in London Road, Carlisle during
April 2003.



It is proposed that Hinds' business, currently on three sites, will be
consolidated onto the Keytor site in Kingstown Industrial Estate, Carlisle by
the end of May 2003, with two of the sites in Durranhill Industrial Estate,
Carlisle being sold.



The proposed reorganisation of Keytor and Hinds is expected to reduce annual
costs by £0.3 m, at a one-off cost of approximately £0.3 m.



Notes for Editors:



In the year ended 31 August 2002, Carr's reported an underlying Group pre-tax
profit of £3.3 m, up 42.0%, on a Group turnover of £143.4 m, up 26.7.



Enquiries:


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

Bankside Consultants Limited
Charles Ponsonby                             020-7444 4166




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