JM Australian Gold Refinery

Johnson,Matthey PLC
03 October 2002



                             For immediate release on Thursday 3rd October 2002

Johnson Matthey to Merge its Australian Gold Refinery with AGR


Johnson Matthey announces that it is to merge its Australasian gold operations
with those of AGR, a gold refining joint venture between the Western Australian
Government and Australian Gold Alliance Pty Ltd.



The merger will allow the new entity, which is to be known as AGR Matthey, to
focus its combined refining operations on the former AGR site in Perth, and to
consolidate its fabricated product activities on the former Johnson Matthey site
in Melbourne.  This rationalisation will both reduce costs and improve
efficiencies.



Johnson Matthey will hold a 20% stake in AGR Matthey and will also receive a
payment of Australian $7 million (£2.5million).  In addition, the new entity
will take over responsibility for its own precious metals leases.



The formation of this new joint venture will give rise to an exceptional loss of
approximately £6 million, almost all of which relates to goodwill that arose in
1990 and has already been written off to reserves.  There will also be a
subsequent exceptional charge of around £2 million arising from Johnson
Matthey's share of the rationalisation costs.



Commenting on the merger Chris Clark, Chief Executive of Johnson Matthey said, '
Combining these two businesses is a sensible strategic move which will improve
the service we can provide to the Australian mining industry, whilst at the same
time reducing costs and improving profits'.



Enquiries:

David Morgan, Executive Director, Group Corporate Development       020 7269 8405
John Sheldrick, Group Finance Director                              020 7269 8438
Ian Godwin, Group Corporate Communications Manager                  020 7269 8410



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