Share Cons. & Sub Division

Billam PLC
25 February 2005


                                   Billam Plc

                                25 February 2005

                      Share Consolidation and subdivision

Billam Plc ('the Company') has today sent a circular to shareholders convening
an Extraordinary General Meeting (EGM) for 23 March 2005.

In the Company's announcement of the final results for the year ended 31
December 2004, the Chairman, Victor Beamish, referred to a proposed further
consolidation of the Company's Ordinary Shares.

The Company has a substantial number of small shareholders, many of whom own
less than 500 Ordinary shares. The Board believes that many smaller shareholders
may maintain their holdings only because dealing costs can make realising their
holding unattractive or uneconomic. The Directors also consider the expense of
maintaining the Company's current share register is a significant cost to the
Company. They believe that these costs will be significantly reduced by the
proposed share consolidation and subdivision, and should assist in decreasing
the bid/offer spread and therefore improve the attractiveness of the New
Ordinary Shares.

The Company has arranged for a special share dealing service which is being
offered by Computershare Investor Services PLC to shareholders with 500 or fewer
shares allowing them to sell at no cost and buy without commission prior to the
consolidation and subdivision taking place. It will therefore be possible for
those smaller shareholders who wish to retain a relatively small interest in the
Company to do so. Details have been sent to all eligible shareholders.

A resolution will be proposed at the EGM which sets out the proposed steps for
the Share Consolidation and Subdivision. It will be proposed that every 500
Existing Ordinary Shares are consolidated and redesignated as one Intermediate
Ordinary Share of £50. Unless a shareholder's holding of ordinary shares is
exactly divisible by 500 he/she will be left with a fractional entitlement to
the Intermediary Shares if the resolution is approved. These fractions will be
aggregated and sold in the market on the shareholder's behalf and, where the
amount of the proceeds is £2.00 or more, the net proceeds (after brokerage
charges) will be returned to the shareholder in proportion to his/her fractional
entitlement. Proceeds of less than £2.00 will be retained by the Company and
used to offset the cost of undertaking the share consolidation and subdivision.

Assuming that the Consolidation and Sub-division is approved at the EGM it is
expected that after close of business on Friday 8 April, the Record Date, the
Ordinary Shares will be consolidated into Intermediate Ordinary Shares.
Fractions of Intermediate Ordinary Shares (any holding or part holding of
Ordinary Shares not exactly divisible by 500) will be aggregated, where
possible, and sold. Further details of the treatment of fractional entitlements
are set out below. Before start of business on Monday 11 April each Intermediate
Ordinary Share will then be sub-divided into 250 New Ordinary Shares.

Trading in the New Ordinary Shares is expected to commence on 11 April 2005.
Following the Consolidation and Sub-division, share certificates will be called
in and new share certificates will be issued. For Shareholders who hold shares
through the CREST system, the New Ordinary Shares are expected to be entitled to
CREST accounts by 11 April 2005. After the Record Date and pending the receipt
of new certificates, transfers of New Ordinary shares held in certificated form
will be certified against the register of members of the Company.

Shareholders are, of course, free at any time on or before 8 April 2005 to
purchase or sell such number of Existing Ordinary Shares as will result in their
holding of Ordinary Shares being exactly divisible by 500. In this event the
shareholder will not be left with any fractional entitlements. However,
shareholders must ensure that all transfers are registered with Computershare
Investor Services PLC by 5.30pm on 8 April 2005.

The New Ordinary Shares will have the same rights as those currently accruing to
the Existing Ordinary Shares under the Company's articles of association.

Recommendation

The Board believes the proposal is in the best interests of shareholders.
Accordingly, the Directors unanimously recommend that you vote in favour of the
resolution to be proposed at the Extraordinary General Meeting as they intend to
do in respect of their own beneficial shareholdings.

Enquiries

Billam Plc                                 020 7336 1300
Angus Forrest

Bishopsgate Communications                 020 7430 1600
Maxine Barnes / Dominic Barretto



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