Acquisition

Johnson Matthey PLC
10 December 2007








                For release at 7.30am Monday 10th December 2007


                        Johnson Matthey to buy Argillon


Johnson Matthey announced today that it has signed an agreement to buy Argillon
Group for €214 million in cash from Ceramics Luxembourg 2(f) S.a r.l., a company
owned by KKR funds.


Argillon Group is an international group specialising in catalysts and advanced
ceramic materials. The group currently manufactures and sells a range of
products into a number of different industries.  Argillon has leading catalyst
technology which is used to control the emissions of oxides of nitrogen (NOx).
Its products include catalysts for mobile and stationary applications including
heavy and medium duty diesel vehicles; stationary diesel engines; marine
applications; and coal, oil and gas fired turbines in power stations.  It also
manufactures and markets a variety of engineered ceramics such as insulators
used in power transmission and distribution applications, innovative piezo
ceramics used as actuators for the textile machinery and automotive industries
as well as alumina components for semi conductors and circuit breakers.


Argillon's technologies will add to Johnson Matthey's existing emission control
capabilities to meet the increasingly challenging regulations to control harmful
NOx emissions. With the increased concern on the effects of poor air quality on
human health and the environment, legislation to control NOx emissions will
continue to tighten around the world.


In the year to 30th September 2007 Argillon reported sales of €160 million,
adjusted EBIT (earnings before interest and taxes) of €19 million and adjusted
EBITDA (earnings before interest, taxes, depreciation and amortisation) of €26
million.  Net operating assets at 30th September 2007 were €60 million.
Argillon employs around 1,500 people and has manufacturing sites in Germany,
Poland and Romania.


The transaction is conditional upon regulatory clearance in Germany.  Johnson
Matthey will finance the acquisition from existing borrowing facilities.


Commenting on this transaction, Neil Carson, Chief Executive of Johnson Matthey
said: 'The acquisition of Argillon will complement our existing technology for
controlling harmful NOx emissions.  In the next few years we expect that global
concerns about air quality and climate change will mean this technology will be
widely used in both mobile and stationary applications around the world.'


Enquiries:


Ian Godwin         Director, IR and Corporate Communications   020 7269 8410

Sally Jones        Public Relations Manager                    020 7269 8407

David Morgan       Executive Director, 
                   Group Corporate Development                 020 7269 8454

Howard Lee         The HeadLand Consultancy                    020 7367 5225

Laura Hickman      The HeadLand Consultancy                    020 7367 5227



www.matthey.com




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