Result of Open Offer and EGM

Melrose PLC
16 May 2005


Not for release, publication or distribution, in whole or in part, in, into or
from the United States, Canada, Japan or Australia.

16 May 2005

Melrose PLC ("Melrose" or the "Company")

Result of Open Offer and EGM

Result of Open offer

On 21 April 2005, Melrose announced the proposed acquisitions of Dynacast and
McKechnie and an associated placing of 199,807,334 New Ordinary Shares and an
open offer to qualifying shareholders of up to 2,186,666 New Ordinary Shares on
the basis of 1 New Ordinary Share for every 6 Existing Ordinary Shares.

The Open Offer was an opportunity for all shareholders to subscribe for New
Ordinary Shares pro rata to their current holdings and was intended to allow
shareholders with relatively small holdings to participate in the fundraising.
Under the Open Offer, valid applications have been received for 2,888,215 New
Ordinary Shares. This represents approximately 132 per cent. of the New Ordinary
Shares offered under the Open Offer.

Accordingly, applications up to a shareholder's basic entitlement will be met in
full and excess applications will be scaled back. Letters confirming the number
of shares allotted to each individual applicant will be despatched together with
excess monies in respect of scaled down applications by no later than 3 June
2005.

The Placing and Open Offer remain conditional upon completion of the
Acquisitions and the admission of the Enlarged Share Capital to trading on AIM,
both of which are currently expected to take place on 26 May 2005 following the
receipt of regulatory clearances.

Result of Extraordinary General Meeting

The Company announces that at the Extraordinary General Meeting which took place
earlier today, the resolution proposed to shareholders, approving, inter alia,
the Acquisitions, was unanimously passed.

Completion of the proposed acquisitions is currently expected to occur on 26 May
2005, following the receipt of regulatory clearances.

Terms defined in the Melrose Prospectus, dated 21 April 2005, have the same
meaning when used in this announcement.

Enquiries

Melrose PLC
Simon Peckham Tel: [phone]

N M Rothschild & Sons Limited:
Philip Swatman              Tel: [phone]
Meyrick Cox                 Tel: [phone]
Ravi Gupta                  Tel: [phone]

Investec:
Keith Anderson              Tel: [phone]
Rupert Krefting             Tel: [phone]

M Communications:
Nick Miles                  Tel: [phone]
Nick Fox                    Tel: [phone]
Tom Hampson                 Tel: [phone]

This announcement does not constitute an offer to sell or an invitation to
subscribe for, or the solicitation of an offer to buy or subscribe for, New
Ordinary Shares in any jurisdiction where such an offer or solicitation is
unlawful. The New Ordinary Shares have not been, and will not be, registered
under the US Securities Act or under the securities laws of any state, district
or other jurisdiction of the United States, or of Canada, Japan, Australia, or
any other jurisdiction and no regulatory clearances in respect of the New
Ordinary Shares have been, or will be, applied for in any jurisdiction other
than the UK. Accordingly, subject to certain exceptions, the New Ordinary Shares
are not being, and may not be, offered for sale or subscription, or sold or
subscribed, directly or indirectly, within the United States, Canada, Japan or
Australia or any jurisdiction where it would be unlawful to do so or to or by
any national, resident or citizen of such countries.






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