Acquisition

Severfield-Rowen PLC
1 February 2002

Embargoed until 7.00am, Friday 1 February 2002


SEVERFIELD-ROWEN PLC

Acquisition of Tubemasters

Severfield-Rowen plc, the UK's largest structural steel group, announces the
acquisition of the entire issued share capital of Tubemasters Limited ('
Tubemasters') for a total consideration of £330,000.

Tubemasters, based in York, is a specialist fabricator with particular expertise
in tubular work for complex structural projects.  Some of the company's recent
projects include work on:

  • Bull Ring, Birmingham
  • Scottish Parliament, Edinburgh
  • Grandstands at Newmarket and Warwick Racecourses
  • Manchester United Training Ground

Tubemasters is a long established sub-contractor to Severfield-Rowen plc and has
a very experienced and skilled workforce.

For the 12 months to 31 August 2001 the company achieved operating profit of
£23,000 on turnover of £2.6 million.  It has net assets of £500,000.

Tubemasters complements the operations and business of Watson Steel, a
subsidiary of Severfield-Rowen plc, purchased in November 2001, and will augment
the total construction package offered by the combined Group.  In particular,
the strength and expertise offered by Watson Steel, Tubemasters and
Severfield-Rowen will make a significant contribution to the forthcoming
Heathrow Terminal 5 project.

Steven Day, the former Managing Director of Tubemasters, will become Deputy
Managing Director of Watson Steel, where he will be joined by Paul Thompson, the
former Production Director of Tubemasters.

The purchase price and acquisition expenses have been funded out of
Severfield-Rowen's existing cash resources without recourse to any borrowings.

Peter Levine, Chairman of Severfield-Rowen, commented:

'The combination of Tubemasters and Watson Steel with their complementary
businesses is another important building block in our strategy for growth.

'Whilst Tubemasters is small in size it nonetheless brings a significant skill
base and management expertise to the Group, and particularly Watson Steel.

'Accordingly we welcome Tubemasters and look forward to its contribution towards
the Group's future success.'

                                    - ends -

For further information, please contact:

Severfield-Rowen                      Peter Levine                                01132 469 993
Financial Dynamics                    Richard Mountain/Peter Otero                020 7269 7291


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