JM acquires Cascade Biochem

Johnson,Matthey PLC
18 October 2002



                              For release at 7.00 am on Friday 18th October 2002


                    Johnson Matthey Acquires Cascade Biochem


Johnson Matthey announces that it has acquired Cascade Biochem Limited ('Cascade
') a small company focused on the manufacture and supply of prostaglandins and
other complex molecules as active pharmaceutical ingredients for the
pharmaceutical industry.

Prostaglandins are complex, chiral molecules that have a variety of applications
in cardiovascular, ophthalmic and gastrointestinal medicine. Given their high
potency, chemical complexity and the difficulty of their synthesis,
prostaglandins are very low volume, high value active pharmaceutical ingredients
(APIs). Demand is expected to see good growth in the coming years as new
prostaglandin based drugs are brought to market and existing drugs come off
patent.

Cascade employs 30 people, mainly highly skilled chemists, at its small scale
manufacturing facility in Cork, Ireland and at its research and development
laboratories on the university campus at Reading, UK. The Cork facility is cGMP
compliant and was approved for API manufacture by the US FDA in May 2001.

The initial purchase price of  £2.75 million is subject to adjustment, based on
the subsequent performance of the Cascade business, up to a maximum of £8.0
million. After taking into account interest costs, the acquisition will make a
small contribution to profit before tax, exceptional items and goodwill
amortisation in the current financial year.

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

'Cascade, with its strong position in an important niche of low volume, high
value APIs, is an excellent fit with our existing business. We are delighted to
have been able to acquire Cascade and look forward to it contributing to the
growth of our Pharmaceutical Materials Division.'

Enquiries:

John Sheldrick             Group Finance Director                  020 7269 8438
Ian Godwin                 Group Corporate Communications Manager  020 7269 8410




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