Acquisition

Morgan Crucible Co PLC
01 August 2007


                                        
                                        
       THE MORGAN CRUCIBLE COMPANY PLC ('MORGAN CRUCIBLE') ACQUIRES A 49%
                              STAKE IN NP AEROSPACE

Morgan Crucible is pleased to announce that it has acquired a 49% equity stake
in NP Aerospace from the Carlyle Group and from management. The transaction
values NP Aerospace at £71m including fees and is expected to be immediately
earnings enhancing for Morgan Crucible.

NP Aerospace is a composite technical moulding business that develops,
manufactures and markets ballistic and non-ballistic products in the defence and
civil sectors. It is based in Coventry, UK with 200 employees and has a strong
position in the UK with the Ministry of Defence. NP Aerospace has a high degree
of experience and expertise in vehicle armour and enjoys unique areas of
application know-how in products such as military helmets and blast protection
suits.

Management will initially retain a 51% equity stake and a phased process is in
place for Morgan Crucible to acquire a further 21% of the equity after three
years and move to full ownership in the three years thereafter. The initial 49%
equity stake values NP Aerospace at 6.5 times 2006 EBITDA. The consideration
payable for the future equity purchases will be based on 7.25 times the EBITDA
of the company for the calendar year preceding the date of each purchase.

Mark Robertshaw, Chief Executive Officer of Morgan Crucible, said:
'I am delighted to welcome NP Aerospace to the Group. This acquisition supports
our strategy of finding businesses that will enhance our existing core product
ranges. NP Aerospace will supplement our strong materials capability and
significant geographic reach. Its committed team with their unique knowledge
will play a vital role in developing and expanding our presence within the
defence market.'

Mark Lejman, Director of Morgan Crucible and head of Morgan Crucible Armour, said: 
'This transaction with NP, coming on the back of investments in ceramic
materials technology, further strengthens Morgan Crucible's commitment in the UK
to finding innovative solutions for ballistic protection in the field of both
body armour and vehicle armour.'

Notes for Class 2 purposes:

The initial investment from Morgan Crucible will be £41.0 million structured as
£36m in a shareholder loan paying 10% per annum, £4.5m in preference shares
yielding 8% per annum, and £0.5m for ordinary equity. NP Aerospace management
are also contributing £4.5m in preference shares and £0.5m of ordinary equity.

In 2006 NP Aerospace revenues were £46.0 million and EBITDA £11.0 million, a
margin of 23.7%. Profit before tax for 2006 was £5.4m. As at 31st December 2006
NP Aerospace had gross assets of £39.8 million.
(All the above numbers are quoted from statutory accounts based on UK GAAP)

Enquiries:

Victoria Gould         The Morgan Crucible Company plc         01753 837306

Robin Walker           Finsbury                                020 7251 3801



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