Advice to Shareholders

Eleco PLC
23 August 2007


                                   ELECO PLC

                             Advice to shareholders

Dear Shareholder,

We have recently been informed by some Eleco shareholders that they have been
targeted by individuals acting on behalf of a purported Canadian company
claiming to act for a potential acquirer who is offering to pay prices
significantly in excess of the prevailing stock market price, with a view to
acquiring 51 per cent. of Eleco's shares. There are good grounds to suspect that
this claim and other statements that have been made regarding levels of interest
received from other shareholders may not be genuine and appear to be aimed at
persuading shareholders to deliver their share certificates and or bank details
to those making the calls.

We advise any of our shareholders receiving calls of this nature to exercise
extreme caution. According to those shareholders who have brought the telephone
contacts received by them to the attention of the Company, the callers are very
persistent and extremely persuasive in trying to convince shareholders that a
bidder is stake building and that any intended offer made subsequently would be
unrealistically in excess of the Company's current share price and would be
justified by the bidder's intention to reach a majority shareholding.

If you receive any unsolicited investment advice regarding the possible sale of
your Eleco shares as a consequence of such calls, we suggest you:

- obtain the correct name of the person and organisation;

- check at www.fsa.gov.uk/register that they are properly authorised by the FSA
  before getting involved further or at all;

- check the FSA website for a list of unauthorised overseas firms who are
  targeting, or have targeted, UK investors at http://www.fsa.gov.uk/pages/
  doing/regulated/law/alerts/overseas.shtml;

- inform us of such circumstances by emailing our Company Secretary at
  ivor.barton @eleco.com


Any approach from such organisations should be reported to the FSA to enable
them to update their records and consider any other appropriate action. More
information on this and similar activities can be found on the FSA website at
www.fsa.gov.uk/consumer


We wish to stress that this incident has had no impact whatsoever on our trading
and there is no reason why it should do so. Enclosed is an appendix containing
the Pre-Close Trading Update recently issued by the Company on 3 August 2007.


Yours sincerely,


John Ketteley
Chairman

Contact details:
John Ketteley, Chairman
David Dannhauser, Finance Director
Tel: [phone]

Collins Stewart Europe Limited,
Te: [phone]

Adventis Financial PR,
Tel: [phone]


A copy of this announcement has been placed on the Company's website and can be
found at http://www.eleco.com/eleco/news_spotlight/rule_26.asp Copies of the
announcement will be dispatched to shareholders.


                                   APPENDIX 1

 Pre-Closed Period Trading update & Appointment of Nominated Adviser and Broker

The Board of Eleco plc today announces its trading update for the year ended 30
June 2007. The Group's preliminary results for the year ended 30 June 2007 will
be announced on Tuesday, 2 October 2007.

Trading

Overall, business and cash generation remained strong in the second half of the
year in line with management's expectation and Asta Development, acquired in
December 2006, made an encouraging contribution to profit. As a consequence,
results for the year ended 30 June 2007 will be in line with market
expectations.

Orders at 1 July 2007 at our Building Systems businesses were significantly
higher than last year due principally to a substantial increase in demand for
Bell & Webster Concrete's pre-cast products; the outlook for our Software
businesses has also improved. We therefore enter the current year with
confidence.

Nominated adviser and Broker

In addition, the Board is pleased to have agreed to the appointment of Collins
Stewart (Europe) Limited as Nominated Adviser and Broker to the Group.

John Ketteley, Executive Chairman commented:

'Eleco has achieved the growth anticipated by the market and results for the
year ended 30 June 2007 will be in line with market expectations.

We are very well positioned to contribute to the Government's drive to
accelerate the building of affordable sustainable housing; we are in a strong
financial position; and we look forward with confidence to the year ahead.'

Enquiries:

Eleco plc
Ivor Barton - Company Secretary
[phone]

Collins Stuart Europe Limited
9th Floor, 88 Wood Street,
London EC2V 7QR

Adventis Financial PR
Tarquin Edwards/Chris Steele
[phone]/4759
[phone]
[phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange