Oil for Food Programme

Weir Group PLC
22 July 2004


                                                                  22nd July 2004
                               THE WEIR GROUP PLC
                        Oil for Food Programme Contracts

Introduction
The Weir Group PLC ('the Group' or 'Weir') announces that, following recent
media enquiries in relation to an Oil for Food programme contract undertaken by
the Group through Wesco Dubai, an overseas Group business, it commissioned an
internal review and a subsequent external investigation of all contracts
undertaken by the Group under the UN sanctioned Oil for Food programme.

The external investigation is being undertaken by independent legal advisers,
Herbert Smith. Whilst this investigation has not been concluded, the findings to
date have revealed that in the course of 2000, trading terms were amended at the
request of certain Iraqi customers, resulting in the prices payable on
subsequent Oil for Food Programme contracts being uplifted by an aggregate of
£4.2 million. The Group did not retain such uplift payments as equivalent sums,
in addition to normal commissions, were paid to an agent acting on behalf of
Group subsidiaries.

The investigations have not been able to establish the ultimate recipients of
the payments to the agent. Therefore the Group cannot rule out the possibility
that sums may have been returned to Iraq.

Background
In April and May this year, the Group received enquiries from three publications
in relation to an Oil for Food programme contract undertaken by Wesco Dubai.
Queries were raised in relation to after sales services costs associated with
the contract. On the basis of information available at that time, and in good
faith, Weir responded to the queries raised and confirmed that the after sales
service costs were related to installation, maintenance and commissioning of the
equipment in the field.

On receipt of further information, the Group undertook a detailed internal
review of all the contracts entered into in accordance with the Oil for Food
programme. The findings of this internal review revealed that, in the case of 15
out of a total of 37 contracts, payments in addition to normal commissions were
made to an agent acting on behalf of Group subsidiaries. The Board immediately
commissioned Herbert Smith to undertake a full investigation of all the Oil for
Food programme contracts.

The contracts involved the supply of pump equipment and spare parts for clean
water supply and oil field water injection and pipelines.

External investigation
Whilst the Herbert Smith investigation has not been completed its findings to
date have confirmed that 15 of the Oil for Food programme contracts did include
payments in addition to normal commissions which were made to an agent on behalf
of Group subsidiaries.

Summary
In light of the Group's internal review and findings of the external
investigation, the Group regrets that the denials provided to the media earlier
this year have now been proved to be incorrect.

The Group's internal review has revealed a number of areas within the Group's
procedures where improvements can be made. Management is taking the necessary
actions to implement these improvements immediately. The Group has also filed
disclosures with the relevant authorities.

Sir Robert Smith, Chairman, commented 'We undertook a thorough review of these
contracts and although the investigation has not yet concluded the Board
considered it essential that we make public the current information. It is most
regrettable that previous statements, whilst made in good faith, were incorrect.
The problem dates back to 2000. Shareholders can be assured that the Board will
take whatever actions are necessary to address quickly and effectively all
concerns identified by the investigations.'

Due to the timing of this announcement and management's desire to communicate
fully with shareholders in this close period, it is necessary to provide general
updated guidance on the outlook for the Group.

The Company continues to support the outlook given at the AGM in May with an
expectation of improving performance in 2004. As with prior years most of this
progress is expected to be delivered in the second half of the year with the
first half broadly in line with 2003.

                                     -ENDS-
Enquiries:
The Weir Group plc+44 (0)7789 032 296
Sir Robert Smith
Mark Selway
Helen Walker

Maitland+44 (0)20 7379 5151
Angus Maitland
Suzanne Bartch
Michelle Jeffery


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