Final Results

Mercury Recycling Group PLC
20 May 2005

                          MERCURY RECYCLING GROUP PLC
            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004


             Turnover increased by 69%; Operating Profits up 147%;
            EU Directive on waste disposal continues to drive sales


Mercury Recycling Group PLC, the UK's largest recycler of fluorescent light
tubes and sodium street lights, quoted on AIM, announces final results for the
year ended 31 December 2004. The results include a full year's contribution from
Simister, Engineering Limited acquired in November of 2003.

• Group sales up 69% to £1.603m (2003: £947,000)

• Operating profit before goodwill up 147% to £176,000 (2003: £71,000)

• Loss before tax of £31,000 (2003: £97,000 loss) after charging goodwill of 
  £204,000 (2003: £168,000)

• Loss per share (basic) of 0.09p (2003: 0.35p loss)

• Net cash of £170,000

• Implementation of EU Directive on Waste Electrical and Electronic Equipment 
  ('WEEE') disposal now expected in Jan '06 already driving sales.

• Major Capital Investment programme including move to purpose-built new
  site in Trafford Park, nearing completion; increases capacity three fold to
  capitalise on market growth

• New five-year contract signed with UK's leading lighting contractor



Commenting on the Group's prospects, Chairman Lord Barnett said:

'The current year is likely to be a transitional one as we meet increased demand
by a substantial re-organisation and with the installation of new plant and
equipment which will more than treble our capacity.

'The Group is now the largest lamp recycler in the UK and prospects are highly
encouraging as the Recycling Sector becomes more and more the focus of attention
both inside and outside Government. When the WEEE Directive is implemented in
January 2006, it will provide further momentum to our sales.'


Enquiries:

Simon Lebor, Group Chief Executive
Bryan Neill, Managing Director
Mercury Recycling Group PLC                          Tel: [phone]

Ian Rice, Rowan Dartington                           Tel: [phone]

Ken Rees/Paul Vann
Binns Winningtons                                    Tel: [phone]


                              CHAIRMAN'S STATEMENT

I am pleased to report another year of significant progress in 2004, with sales
of £1,603,000 which shows an increase of 69 per cent. when compared to 2003.
Operating profits before amortisation were £176,000 as against £71,00 in 2003,
showing the economies of scale as turnover increases.

The implementation of the European Union Directive on Waste Electrical and
Electronic Equipment ('WEEE') scheduled for mid 2005, is now expected to be
delayed by several months.  This has not, however, deterred major organisations
and Government Authorities from making early preparations in order to conform
with their legal liabilities to recycle their tubes and lamps.  Each month now
sees a growing number of new customers and in this context we have recently
signed a five year national contract with the country's leading lighting
contractor, giving us additional throughput, which will underwrite our current
investment programme.

The current year is likely to be a transitional one as we plan to meet the
increase in demand by a substantial reorganisation, and with the installation of
new plant and equipment which will more than treble our capacity.  Nevertheless,
there will be some additional one-off costs entailed by the transfer of our
operations to a new site in Trafford Park, which is some six times the size of
our current premises.  Furthermore, there are other costs such as our
application for an additional Pollution, Prevention and Control Licence, all of
which will be written off in this year's accounts.  In addition, orders for the
updating of our present London plant and an increase in the number of vehicles
in our fleet have now been contracted in order to cope with the anticipated new
volumes.

The Group is now the largest lamp recycler in the UK and the Board believe it is
well positioned to take advantage of future business, having excellent
management, appropriate technology, and the necessary infrastructure.  In
January 2006, when the WEEE Directive is implemented, it will provide the
additional momentum.

Your Directors are, therefore, looking forward with confidence to the rewarding
times ahead.  Prospects are highly encouraging as the Recycling Sector becomes
more and more the focus of attention both inside and outside Government.

On your behalf, I would like to thank my colleagues and all our staff for their
hard work and continuing commitment to the Group.

The Rt Hon The Lord Barnett JP PC
Chairman




GROUP PROFIT AND LOSS ACCOUNT
                                                                                                2004               2003
                                                                                                £000               £000

Turnover                                                                                       1,603                947

Cost of sales                                                                                  (188)              (105)

Gross profit                                                                                   1,415                842

Administrative expenses                                                                      (1,443)              (939)

Operating profit before amortisation                                                             176                 71
Goodwill amortisation                                                                          (204)              (168)

Group operating loss                                                                            (28)               (97)

Interest receivable                                                                                3                  6
Interest payable                                                                                 (6)                (6)

Loss on ordinary activities before taxation                                                     (31)               (97)

Taxation                                                                                           -                  -

Loss on ordinary activities after taxation retained for the year                                (31)               (97)

(Loss) earnings per share      - Basic                                                       (0.09p)            (0.35)p
                               - Adjusted                                                      0.52p              0.25p



The group's operation in the year continued unchanged; no operations were
disposed of or acquired.

There are no recognised gains or losses other than those passing through the
profit and loss account.


GROUP BALANCE SHEET

                                                                                               2004                2003
                                                                                              £'000               £'000
Fixed assets
Intangible assets                                                                             3,429               3,616
Tangible assets                                                                                 578                 553
                                                                                              4,007               4,169

Current assets
Debtors                                                                                         347                 232
Cash at bank and in hand                                                                        170                 232
                                                                                                517                 464

Creditors: amounts falling due within one year                                                (294)               (337)
Net current assets                                                                              223                 127


Total assets less current liabilities                                                         4,230               4,296


Creditors: amounts falling due after more than one year                                        (34)                (57)

Provisions for liabilities and charges                                                            -                (12)

                                                                                              4,196               4,227

Capital and reserves
Called up share capital                                                                       3,336               3,336
Share premium account                                                                           242                 242
Other reserve                                                                                   695                 860
Merger reserve                                                                                (111)               (111)
Profit and loss account                                                                          34               (100)
Equity shareholders' funds                                                                    4,196               4,227




GROUP CASH FLOW STATEMENT

                                                                                               2004                2003
                                                                                              £'000               £'000

Net cash inflow form operating activities                                                        67                 175


Returns on investments and servicing of finance
Interest received                                                                                 3                   5
Interest paid                                                                                   (6)                 (5)
                                                                                                (3)                   -

Capital expenditure and financial investment
Payments to acquire tangible assets                                                            (96)                 (5)

Acquisitions and disposals
Payment to acquire subsidiary                                                                   (7)               (181)

Net cash outflow before financing                                                              (39)                (11)


Financing
Repayment of finance lease and hire purchase contract                                          (23)                 (6)

Decrease in cash                                                                               (62)                (17)




NOTE:

The financial information set out above does not constitute the Company's
financial statements for the year ended 31 December 2004.  The financial
statements for 2004 have been audited and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.  The auditors have
reported on the 2004 statements; their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

Copies of the 2004 Report and Accounts will be mailed to shareholders shortly.
Further copies will be available for collection from the Company's offices at
Unit G, Canalside North, John Gilbert Way, Trafford Park, Manchester  M17 1DP.




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