Joint Venture

Morgan Crucible Co PLC
15 February 2005



15 February 2005


    The Morgan Crucible Company plc ('Morgan') enters into new Joint Venture
                               agreement in China


Morgan's Thermal Ceramics division ('Thermal') has reached an agreement to enter
into a Joint Venture in China with Hubei Kailong Chemical Group Co. Ltd by
acquiring a 70% stake in Hubei Kailong's ceramic fibre business. The
consideration is a total of RMB 30.4 million (US$3.7m), to be satisfied by RMB
25.4m (US$3.1m) of cash and the remainder being the licensing of know-how and
technology. The Joint Venture will trade under the name Morgan Kailong (Jingmen)
Thermal Ceramics Co. Ltd. ('Kailong'). The transaction remains subject to the
completion of local approvals.

Kailong produces high temperature insulation fibres and ancillary products, and
is based in Jingmen City, Hubei province, close to the 3 Gorges Dam.

Thermal will be adding their world-class technology and know-how to the existing
Hubei Kailong Ceramic Fibre business. The Joint Venture will enable Thermal to
increase its presence in China and substantially increase its production in
low-cost areas.

This is the second Chinese Joint Venture that Morgan has announced in the last
twelve months. Morgan's Magnetics division reached an agreement in August 2004
to establish a Chinese Joint Venture that will trade under the name SANVAC.
SANVAC will produce sintered Rare Earth permanent magnets, which are used in
applications in electric motors, generators and consumer products.

Warren Knowlton, Chief Executive Officer, commented, 'These two Joint Ventures
strongly support our target of increasing our presence in China. The strategic
alliances with well-respected Chinese partners mean that we are well placed to
align our superior technology with their knowledge of local production'

For further information please contact:

The Morgan Crucible Company plc
Victoria Gould, Director of Group Communications                01753 837 000

Finsbury Group
Charlotte Hepburne-Scott / Robin Walker                         020 7251 3801


Notes to editors:

The Morgan Crucible Company plc

Morgan is a listed company on the London Stock Exchange and is part of the
FTSE250 index.

It is one of the world's leading specialist materials engineering companies,
producing solutions in carbon, ceramic and magnetic materials. For more
information, visit www.morgancrucible.com





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