Disposal

Johnson Matthey PLC
14 December 2006




               For Release at 7.00 am Thursday 14th December 2006


            Johnson Matthey Sells Ceramics Division for £153 Million

Johnson Matthey announces that it has agreed to sell its Ceramics Division to a
company established by Pamplona Capital Partners I, LP (Pamplona), a private
equity investment fund, for approximately euro 226 million (£153 million) in
cash.  The transaction is conditional upon regulatory approval in Germany, Spain
and Portugal and is expected to be completed on 28th February 2007.  The
consideration, which is on a cash and debt free basis, is subject to adjustment
by reference to the net assets of the division at completion.


The Ceramics Division, headquartered in Spain, is a leading global supplier of
raw materials and intermediate products to the tile and sanitaryware industries.
The business has a presence in all the major geographical regions with core
manufacturing facilities in Spain, Italy, UK, Brazil, USA, Malaysia, India and
China.  The business employs approximately 670 people.


In the financial year ended 31st March 2006 the Ceramics Division had sales of
£182.2 million and made an operating profit of £21.3 million.  For the six
months ended 30th September 2006, the division had sales of £90.1 million and
made an operating profit of £10.2 million.


The disposal will give rise to a gain of approximately £30 million before costs.


In November 2003 Johnson Matthey stated its intention to consider offers for
parts of its then Colours & Coatings Division in line with the group's long term
strategy of focusing on its core activities in catalysis, precious metals and
fine chemicals. As part of this process, the group sold its Pigments &
Dispersions business in September 2004.  Consistent with this strategy and,
having now received an acceptable offer for the Ceramics Division, the board has
agreed to sell the business to Pamplona.


The proceeds from the disposal of this division will be used to buy back shares
and fund bolt-on acquisitions.


Commenting on the transaction, Neil Carson, Chief Executive of Johnson Matthey
said:


'The sale of the Ceramics Division represents a further step in our strategy of
focusing the group on its core activities in catalysis, precious metals and fine
chemicals.'





Enquiries:




Ian Godwin         Director, IR and Corporate Communications       020 7269 8410
John Sheldrick     Group Finance Director                          020 7269 8408
Howard Lee         The HeadLand Consultancy                        020 7367 5225
Laura Hickman      The HeadLand Consultancy                        020 7367 5227



www.matthey.com


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