Disposal

Cookson Group PLC
15 December 2005

15 December 2005




SALE OF COOKSON'S LAMINATES BUSINESS FOR US$91 MILLION



Cookson Group plc ('Cookson'), the leading materials science company, announces
that it has today entered into an agreement to sell its Laminates business ('
Laminates') to Isola Group S.A.R.L, for US$91 million (£51 million*). Isola
Group S.A.R.L. is ultimately owned by Texas Pacific Group.  Completion of the
transaction, which is conditional on satisfactory clearance from the European
competition authorities, is expected in February 2006. The purchase price will
be satisfied on completion by a combination of cash proceeds and an assumption
of net debt.   The cash element of the price will be subject to completion
balance sheet adjustments in respect of working capital and capital expenditure,
which are not expected to be material.



Laminates, one of the three business sectors which comprise Cookson's
Electronics division, supplies laminates, prepregs and other substrate material
products for the manufacture of printed circuit boards under its trading name,
Polyclad. The business comprises a group of companies with operations and
production facilities in the USA, Europe and Asia-Pacific.



On an International Financial Reporting Standards ('IFRS') basis, for the year
ended 31 December 2004, Laminates generated a trading profit** of £2.5 million
on revenue of £132 million.  As at 31 December 2004, Laminates had gross assets
of £126 million and gross liabilities of £45 million.   For the six months ended
30 June 2005, Laminates generated a trading loss* of £1.7 million on revenue of
£65 million.  As at 30 June 2005, Laminates had gross assets of £129 million,
gross liabilities of £45 million and employed 1,585 people.



The sale of Laminates is part of Cookson's strategy of focussing on higher
technology products and exiting commodity activities, as well as achieving
progressive debt reduction through, in part, non-core business disposals.  In
January 2005, Cookson announced a target of raising over £100 million from
disposal proceeds by the end of 2006.  In the six month period to 30 June 2005,
cash proceeds from disposals totalled £13 million.



The net cash proceeds from the sale will strengthen Cookson's balance sheet and
provide greater financial flexibility.  Additionally, Cookson will consider
making advanced payments into its UK pension scheme to reduce the existing
deficit.



JPMorgan Cazenove acted as a financial advisor to Cookson for this transaction.



Commenting on the sale, Nick Salmon, Chief Executive of Cookson Group plc, said:



'The third quarter trading update, announced in early November, highlighted the
solid progress we are making in achieving the profitability targets announced at
the beginning of this year.  This transaction represents a significant step in
the achievement of one of our other strategic objectives, progressive debt
reduction.



'Whilst we have recently been successful in returning the Laminates business to
break-even, it has for too long had a detrimental impact on the earnings profile
of our Electronics division, and its disposal is the right thing for that
division and for the Group as a whole.



'As a result of this transaction and others concluded during the course of the
year to date, we are now nearly two thirds of the way towards our strategic goal
of raising over £100 million through disposals by the end of 2006.  We remain
confident of achieving that goal.'



Notes:



* translated at an exchange rate of US$1.77/£1



** trading profit consists of profit from operations before central Group and
Divisional cost allocations, rationalisation costs, amortisation and impairment
of intangible assets and profit/(loss) relating to fixed assets



Note to editors:



In January 2005, Cookson announced its strategy which focuses on performance
enhancement, debt reduction and the disposal of non-core activities.



Cookson's objectives include improving profitability, with targeted return on
sales by 2007 of 10% in both the Ceramics and Electronics divisions and a return
on net sales value (i.e. excluding the precious metals content) of 15% for the
Precious Metals division.  Cookson also plans to reduce total debt significantly
over the next 2-3 years. This will be achieved through a combination of strong
operational cash flow - from improved profitability and working capital
management - and a disposal programme which aims to raise over £100 million from
the sale of a number of non-core activities and assets by the end of 2006. In
addition, Cookson intends to resume a sustainable dividend payment as soon as
possible with dividends funded from free cash flow.


Shareholder/analyst enquiries:
Nick Salmon, Chief Executive                         Cookson Group plc
Mike Butterworth, Group Finance Director             Tel: + 44 (0)20 7061 6500
Isabel Vilela, Investor Relations Manager

Media enquiries:
John Olsen                                           Hogarth Partnership
                                                     Tel: [phone]



About Cookson Group plc



Cookson Group plc is a leading materials science company which provides
materials, processes and services to customers worldwide. The Group's operations
are formed into three divisions - Ceramics, Electronics and Precious Metals.



The Ceramics division is the world leader in the supply of advanced flow control
and refractory products and systems to the iron and steel industry and is also a
leading supplier of specialist ceramics products and refractory linings to the
steel, glass, foundry and other industries.



The Electronics division is a leading supplier of materials and services to
fabricators and assemblers of printed circuit boards and semiconductor packaging
and to industrial markets including automotive and construction.



The Precious Metals division is a leading supplier to the jewellery industry of
fabricated precious metals products.



Headquartered in London, Cookson employs some 16,000 people in more than 35
countries and sells its products in over 100 countries.






                      This information is provided by RNS
            The company news service from the London Stock Exchange