Disposal and trading update

Halma PLC 28 February 2006 Halma p.l.c. ('Halma') SALE OF RESISTOR BUSINESSES AND UPDATE ON CURRENT TRADING Halma, the leading safety, health and sensor technology group, announces that on 27 February 2006 it completed the disposal of the high power Resistor businesses from its Industrial Safety sector to subsidiaries of Telema SpA, based in Milan, Italy for a cash consideration of US$17.7 million and €5.0 million (approximately £13.5 million). This disposal follows closely upon the sale on 13 December 2005 of Secomak Limited to Secomak Holdings Limited for £1 million cash with an additional consideration of £500,000 over the next six years, and the sale on 29 December 2005 of Marathon Sensors Inc. to Marathon Multinational Industries Corp. for $1 million cash with an additional consideration of $300,000 over the next four years (approximately £0.7 million in total). Commenting on the above changes, Andrew Williams, Group Chief Executive, said: 'These latest disposals give further evidence of the strategic action being taken to transform Halma into a business capable of delivering higher growth and continuing strong returns for shareholders. Whilst the businesses being sold have generated value over many years, I believe they are better placed under new ownership and Halma's shareholders are better served by us concentrating more of our resources on our core business sectors. 'In June 2005, I signalled our intention to review all strategic options for these businesses. This review and our success in improving the performance of our Resistor businesses have proven fruitful and resulted in the successful sale to Telema, who already have a leading presence in the high power resistors market. The Board believes that the Group has realised full and fair value for these businesses through this transaction. 'Following these disposals more than 60% of our ongoing sales relate to Electrical or Electronic products. Halma now has a more focussed portfolio with a greater proportion of our resources allocated to sectors delivering higher rates of return and offering more attractive growth prospects.' Current trading remains strong Sales and orders have continued to grow year-on-year. The Group is currently on track to deliver a performance in the year to 1 April 2006 in line with current market expectations, despite the reduction in operating profit arising from the disposals announced today. The Group will provide a further trading update at the end of April 2006 as previously scheduled. Management changes Following the disposal of eight Group companies in the past five months, Bill Seymour will be leaving the Group after a period of handover of his responsibilities for the Elevator and Door Safety Division to John Campbell. Andrew Williams commented: 'Bill Seymour has made a significant contribution during his time with the Group, firstly as a Company President and then as a Divisional Chief Executive. In recent years Bill led a wide geographic spread of companies and headed up the acquisition of BEA, the Group's largest acquisition. Bill leaves Halma to pursue other personal and professional goals and goes with our sincere thanks and best wishes. John Campbell is a member of Halma's Executive Board and was previously responsible for our Resistor businesses. Having successfully managed the disposal of those businesses I wish him further success in leading and developing our Elevator and Door Safety activities towards greater growth.' For further information please contact: Halma p.l.c. +44 (0)1494 721111 Andrew Williams, Chief Executive Kevin Thompson, Finance Director Hogarth Partnership Limited +44 (0)20 7357 9477 Rachel Hirst/Andrew Jacques Notes 1. A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com. 2. The legal entities comprising the high power Resistor business are Cressall Resistors Limited, IPC Power Resistors Inc., IPC Resistors Company, Mosebach Manufacturing Company and Post Glover Resistors Inc. This information is provided by RNS The company news service from the London Stock Exchange

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