Acquisition

Halma PLC
16 October 2002


                                    HALMA p.l.c.
                                 TRADING UPDATE
                         AND ACQUISITION OF THE BEA GROUP


Halma, the leading safety and environmental technology group, today issued a
trading update and announced the acquisition of Bureau d'Electronique Appliquee
S.A. and B.E.R. Group S.A. ('BEA' Group). The acquisition of BEA for an initial
sum of Euro 72 million, including repayment of loans and purchase of cash, is
immediately earnings enhancing and was funded from Halma's existing cash
resources. The issue of Halma's usual October Trading Update has been brought
forward to coincide with this acquisition announcement.

BEA designs, assembles and sells sensors for automatic doors. It is the world
market leader in its specialised market. This family-owned business was founded
in 1965 and is headquartered in Liege, Belgium, with operations in Pittsburgh,
USA and China. In the year to 31 December 2001, BEA made sales of Euro 42
million, earnings before interest, tax and amortisation (EBITA) of Euro 7
million and had net assets of Euro 22 million, excluding loans. In addition to
the initial sum paid there are earn out payments based on increased profits in
the period to March 2004, giving a maximum cash price of Euro 95 million. BEA's
sensors use microwave and infra-red technology to detect people approaching
automatic doors in shops, offices and commercial premises and work in
conjunction with door opening mechanisms. The technology BEA has developed is
complementary to Halma's current techniques and is widely used by many of the
leading manufacturers of automatic doors in the USA, Europe and around the
world. It will join Halma's Elevator Electronics Division, the acknowledged
world leader in the control of elevator doors.

Halma confirmed that its first six months trading in this financial year had
continued as predicted. At Halma's AGM on 1 August 2002, David Barber, Chairman,
said that order intake in the first quarter was similar to last year with sales
a little lower. This pattern has continued into the second quarter and is
anticipated to lead to half-year profits a little below the first half of last
year. Trading at this level, combined with the contribution from the BEA
acquisition, should result in full-year earnings within the range of current
market expectations.

Stephen O'Shea, Group Chief Executive, remarked: 'We are delighted with the BEA
acquisition which is the largest we have made to date and was paid for in cash
generated by our strong cash flow. The price paid is in line with our normal
criteria. BEA extends our range of products and gives us access to additional
markets using technology with which we are familiar and is an excellent fit with
our existing operations.' For further information, please contact:


Stephen O'Shea, Chief Executive                        [phone]
Kevin Thompson, Finance Director                       [phone]
Hogarth Partnership Limited               
Rachel Hirst/Andrew Jaques                             [phone]

A copy of this announcement, together with other information about Halma, may be
viewed on its website: www.halma.com


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