Acquisition

Johnson,Matthey PLC
13 July 2004







For Immediate Release Tuesday 13th July 2004



                  Johnson Matthey Agrees to Acquire Lancaster Synthesis



Johnson Matthey announces that it has agreed to acquire the worldwide business
of Lancaster Synthesis Limited ('Lancaster') from Clariant AG for £14.15
million.  The transaction is conditional upon regulatory approval in Germany.




Lancaster sells a wide range of organic chemicals mainly to industrial and
academic research institutions.  It has catalogue sales and small scale bulk
manufacturing operations in Morecambe, UK and additional distribution facilities
in the USA, Germany, France and India.



The business had sales of £19.6 million in 2003 and employs 225 people
worldwide.



Lancaster's operations are an excellent fit with those of Johnson Matthey's
existing Research Chemicals business and its acquisition provides opportunities
to improve market share and increase operating efficiencies.



Johnson Matthey will be taking a £2 million exceptional provision to integrate
the Lancaster business with its existing operations.  The acquisition will be
earnings accretive in the first full year of ownership.



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



'Lancaster Synthesis is an excellent fit with our existing Research Chemicals
business.  The acquisition will allow the enlarged organisation to offer a
greatly enhanced range of products and services to customers of both
organisations.'







Enquiries:

John Sheldrick      Group Finance Director                     020 7269 8438

Ian Godwin          Group Corporate Communications Manager     020 7269 8410

Howard Lee          The Headland Company                       020 7036 0369

Laura Hickman       Gavin Anderson & Co                        020 7554 1400

www.matthey.com






                      This information is provided by RNS
            The company news service from the London Stock Exchange