Disposal

IMI PLC
25 June 2001

25 June 2001



           IMI's repositioning continues with £55 million disposal




IMI plc, the major international engineering group, has announced the sale of
a number of its smaller businesses in Energy Controls to Tyco Flow Control
(UK) Ltd for £55 million in cash. The businesses sold comprise the Safety
Systems Group (Bailey Birkett, Amal and Marston Bursting Discs in the UK), the
ball valve business (Mecafrance in France and MCF in the US) and Cash Valve in
the US. In the year ended 31 December 2000 these businesses had a combined
operating profit of £5.5 million on sales of £48 million. The value of
transferred assets at completion was £25 million. The proceeds of sale were
paid in full on completion and will be reinvested in IMI's businesses.


IMI recently announced its intention to focus on a fewer number of higher
growth businesses and this disposal is a further step in that process. Energy
Controls is now predominantly a Severe Service control valve business based
upon CCI, the global market leader in severe service valves supplied to the
growing power, oil & gas markets. Including BTG, acquired in February, IMI's
revenues in the Severe Service sector are now in excess of £115 million per
annum.


IMI's Chief Executive, Martin Lamb, commented: 'The sale of these businesses
makes a great deal of sense for both parties, complementing Tyco Flow
Control's broader industrial offering, whilst sharpening IMI's focus on the
niche Severe Service sector. During the first half of this year we have
acquired BTG, in Severe Service, and Display Technologies, in our Point of
Purchase (PoP) display business at a combined cost of £42 million and have now
generated £55 million in sale proceeds. The combination of these three
transactions is expected to be earnings enhancing in the first full year.'


                                   - Ends -

Further information on Severe Service can be obtained from the CCI website
www.ccivalve.com

                             ___________________








In the Chairman's Statement at the AGM, IMI announced that it would in future
be issuing a trading update before the interim and preliminary results
announcements. The first such trading update will be issued on 3 July.








Enquiries:

IMI plc                                           Tel: [phone]
Martin Lamb, Chief Executive
Trevor Slack, Finance Director


Issued by:

Weber Shandwick Worldwide                         Tel: [phone]
Ben Padovan