Statement re EPA Announcement

Elementis PLC 21 March 2003 IMPACT OF FINAL US ENVIRONMENTAL PROTECTION AGENCY RULING ON CCA Staines, UK, 21 March, 2003 - Elementis plc (London Stock Exchange, ELM) notes the press advisory released by the US Environmental Protection Agency (EPA) on 20 March, 2003, regarding the use of chromated copper arsenate ('CCA') for wood treatment. As expected, the EPA has confirmed the withdrawal of registration for the use of CCA's for most residential uses, but has reduced the scope of the ban so that agricultural and permanent foundation applications will now not be affected. Elementis Chromium supplies chromic acid, which is used in the manufacture of CCA and acts primarily as a binding agent. Elementis now expects that, as a result of this ruling, Elementis Chromium's global sales of chromium chemicals will be less affected than previously anticipated. It is currently estimated that sales of chromium chemicals could be affected by around 12 per cent in 2004, representing approximately 4.5 per cent of total Elementis plc sales. In order to create a viable low cost manufacturing capability in the changed market environment that this ruling would create, Elementis acquired the chromium chemicals business of OxyChem, a US producer, in December 2002. Following this acquisition, rationalisation of the Elementis Chromium facilities was undertaken, which is expected to achieve annualised savings in excess of £13 million, with at least half of that amount expected to be achieved in 2003. The EPA's ruling can be viewed at: http://www.epa.gov/pesticides/factsheets/ chemicals/1file.htm -Ends- Enquiries: Elementis plc Tel: +44 (0)1784 224212 Geoff Gaywood Chief Executive Brian Taylorson Finance Director Hilary Reid Evans Head of Corporate Communications Brunswick Tel: +44(0)20 7404 5959 Andrew Fenwick Fiona Fong This information is provided by RNS The company news service from the London Stock Exchange

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