Acquisition

Johnson,Matthey PLC
23 April 2001


Johnson Matthey Acquires Pharm-Eco Laboratories 


Johnson Matthey announces that it has acquired Pharm-Eco Laboratories, Inc.
('Pharm-Eco') for a cash consideration of US$9.9 million. In addition, Johnson
Matthey has taken on Pharm-Eco's net borrowings of US$37.0 million.

Based on two sites in the Boston, Massachusetts area and employing around 120
people, Pharm-Eco provides contract research, process development and small
scale synthesis services to the pharmaceutical industry. Its turnover in the
financial year ended 31st December 2000 was $17 million.

Pharm-Eco's services are primarily focussed on drug development from discovery
through to Phase II clinical trials.  These services complement Johnson
Matthey's Pharmaceutical Materials business, based at West Deptford, New
Jersey, which manufactures active pharmaceutical ingredients for drugs that
are already approved for market or are very near to receiving final approval. 

The acquisition presents Johnson Matthey with enhanced opportunities to bring
new pharmaceutical manufacturing business to the West Deptford facility, which
is currently undergoing a major programme of expansion, and considerably
extends its existing portfolio of products and services for customers in the
pharmaceutical industry.

The acquisition of Pharm-Eco is expected to be earnings neutral in Johnson
Matthey's  current financial year and earnings enhancing thereafter.

Commenting on the acquisition, Chris Clark, Chief Executive of Johnson Matthey
said:

'Niche acquisitions in our core business areas are in line with our strategy
for  growth. We are also investing heavily in our existing businesses. The
acquisition of Pharm-Eco represents an excellent opportunity to further expand
our activities in the rapidly growing pharmaceutical materials market.'

Forrest Sheffy, Vice President and General Manager, Pharmaceutical Materials,
said:

'Pharm-Eco has a strong customer base and an outstanding reputation for the
quality of its service throughout the pharmaceutical industry. The acquisition
fits well with our existing activities in pharmaceutical materials.'


Enquiries:

John Sheldrick   Group Finance Director                      020 7269 8438

Forrest Sheffy   Vice President and General Manager, Pharmaceutical Materials 
     
                                                         ([phone]    
  
Ian Godwin      Group Corporate Communications Manager       020 7269 8410