Sale of Adhesive Business

Elementis PLC 24 March 2005 24 MARCH 2005 ELEMENTIS plc SALE OF HARDMAN EPOXY AND URETHANE PRODUCTS BUSINESS Elementis plc (LSE:ELM) today announced that it has agreed to sell its Hardman epoxy and urethane products business headquartered in Belleville, New Jersey, US ('Hardman'), for a cash payment of approximately £7.8m to Royal Adhesives and Sealants, LLC ('Royal'). Royal is a manufacturer and marketer of specialty adhesives and sealants for use primarily in industrial and commercial applications throughout the United States. Hardman, which has previously been managed as part of the Elementis Specialties business, is a manufacturer and marketer of epoxy and urethane products into the adhesive and sealants industry worldwide, has a strong presence in North America, and employs around 43 people. Proceeds from the sale will be used to reduce debt. In the year ending 31 December 2004, Hardman made EBITDA of £1.1m on sales of £10.4m and net assets of £2.4m. Geoff Gaywood, Chief Executive Officer of Elementis, commented: 'This transaction is consistent with our commitment to divest non-core chemical assets at values that reflect the best interests of our shareholders. ' Notes to Editors This announcement has assumed an exchange rate of US$1.9 to the UK pound EBITDA is an abbreviation for Earnings Before Interest, Tax, Depreciation and Amortisation of goodwill - Ends - Enquiries Elementis 01784 227000 Geoff Gaywood Chief Executive Brian Taylorson Finance Director Brunswick 020 7404 5959 Kate Holgate Wendel Verbeek Chi Lo This information is provided by RNS The company news service from the London Stock Exchange

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