Acquisition

Eleco PLC
11 September 2000

                          ELECO PLC
                              
     Eleco buys specialist Construction Software company
                              

Eleco plc, the building systems group, announces the
acquisition of the entire issued share capital of MBA
Computing Limited ('MBA'). The initial consideration will be
£548,000 with a deferred payment of up to £400,000, based on
the trading performance of MBA over the two years to 31
August 2002.

MBA develops and supplies a range of construction design
software, which is tailored to the needs of modular and pre-
fabricated construction methods. In addition to its own
Construction Designer Modules and Total Housing Solutions,
which operate on the most widely used AutoCADT  platform, it
produces construction design and production control software
bespoke to end users' needs. MBA's software is widely used
within the housebuilding industry. Additionally, MBA is an
authorised dealer of AutoDesk Inc. and a registered
developer of its AutoCADT software.

John Ketteley, Executive Chairman of Eleco comments:

'MBA makes an excellent fit into the Eleco group. It has
developed a range of software for a design process targeted
at modular and pre-fabricated construction methods for which
there is increasing demand.   This is specially relevant to
the housebuilding industry, an important sector for the
Group, particularly Gang-Nail Systems, with whom MBA has
established a close working relationship, assisting with the
development of recently delivered software for Gang-Nail's
Ecojoist flooring system.

MBA has established relationships with architects and
housebuilders and pre-fabricated element suppliers to the
housing industry. These relationships, together with its
software development skills are complementary to the Group's
activities. In addition to promoting its software products,
I am confident that MBA will provide enhanced opportunities
for our existing businesses.'

Of the initial consideration, £100,000 is being satisfied by
the issue of 333,330 new ordinary shares of 10p each in
Eleco (which will not rank for any dividend paid in respect
of the year ended 30 June 2000).  The balance will be paid
in cash. Up to £200,000 of the deferred consideration may,
at Eleco's option, be satisfied by the issue of further
shares at the then ruling price.  Additionally £52,000 of
directors' loans are being repaid by MBA.

At 31 August 1999, the date of the last audited accounts,
MBA had net liabilities of £109,000 and for the year then
ended, during which it curtailed supplying and installing
computer hardware, it incurred a loss before tax of
£113,000. Unaudited management accounts for the 11 months to
31 July 2000, report a profit before tax of £91,000.


Enquiries to:

John Ketteley: Executive Chairman
Eleco plc                            Tel: [phone]

David Millham
Millham Communication                Tel: [phone]