Re Pension fund

Morgan Crucible Co PLC
17 March 2008


The Morgan Crucible Company plc announces a c£160m buy-out deal between the
Trustees of its UK pension schemes and Lucida plc, a FSA regulated insurance
company.

Following a rigorous selection process, the Trustees of both UK pension schemes
(the Morgan Pension Scheme and the Morgan Group Senior Staff Pension and Life
Assurance Scheme) have agreed to secure the current pensioner liabilities with
Lucida plc an insurance company regulated by the UK's Financial Services
Authority. An important part of the process was maintaining the security and
service standards for the scheme members which Morgan believes has been achieved
by the selection of Lucida. The Lucida annuity policies in respect of these
liabilities will be issued in the Trustees' name, and will be investments of the
Trustees.

The price of the annuity policies is c.£160m. In addition Morgan will be making
a one-off contribution of c. £4m to the schemes to facilitate the transaction.
Using consistent assumptions, Morgan's UK net IAS 19 balance sheet position
(£2.5m obligation at the year end 2007) will improve by c£7m as a result of this
risk transfer with a corresponding effect on the overall Group net IAS 19
balance sheet obligation which was c£48m at the 2007 financial year end

The deal secures the pensions of Morgan's c. 3,000 current UK pensioners. Morgan
continues to offer its defined benefit pension schemes to its current employees
and deferred pensioners.

Commenting, Kevin Dangerfield, Chief Financial Officer, said: 'Having worked
closely with the Trustees throughout this process, Morgan is very pleased with
the outcome of this important transaction. This enhances the security of our UK
pension schemes whilst transferring a substantial amount of the longevity and
investment risk to Lucida as the insurer'.

Morgan was advised on the transaction by Lane Clark & Peacock LLP.

Enquiries:

Victoria Gould,  The Morgan Crucible Company plc      01753 837 237 

Robin Walker,    Finsbury Group                       020 7251 3801
Clare Strange     


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