Share Reorganisation

Elektron PLC
23 June 2005


FOR IMMEDIATE RELEASE                                              23 June 2005

                                  ELEKTRON PLC
                         ('Elektron' or the 'Company')

   Proposed consolidation and sub-division of the Company's existing ordinary
                               shares of 5p each

The Company announces that it is writing to shareholders setting out proposals
to consolidate and then sub-divide the Company's share capital. These proposals
will be voted upon at the Company's forthcoming Annual General Meeting ('the
AGM'), which will be held at 3.00 pm on Thursday 28 July 2005 at Alfreds Way,
Barking, Essex IG11 0AZ.

Share Consolidation

The Company currently has just over 2,800 shareholders. Of these almost 1,250
shareholders have registered holdings of less than 2,000 ordinary shares,
representing some 45% of the total number of shareholders but less than 1.5% of
the issued ordinary shares. As at the close of business on Friday 17 June 2005,
a shareholding of 2,000 ordinary shares was worth £230 at the mid-market price.

The Board believes that for a company of its size, it is not in the Company's
best interests to continue to bear the significant costs of servicing such a
large shareholder base. The Board also believes that, due to their small
holdings, many of such shareholders may have considered selling their ordinary
shares but have decided not to do so in the light of disproportionate dealing
and administration costs relating to such a sale.

The Board is therefore proposing a restructuring of the Company's ordinary
shares, the effect of which will be to reduce the number of shareholders hence
achieving costs savings for the Company, whilst at the same time returning
value, free from transaction costs, to those smaller shareholders. It is
proposed to achieve this by first consolidating every 2,000 ordinary shares of
5p each into one Consolidated Share of £100.

As a consequence of the consolidation, if a shareholder holds less than 2,000
ordinary shares at the time the proposed consolidation takes effect, he or she
will not receive any new Consolidated Shares in the Company but will receive a
fractional entitlement to a Consolidated Share, which will be aggregated with
other such fractional entitlements and sold by the Company on his or her behalf.
With a view to maximizing the sale price of such fractional shares, the Company
will itself then purchase those fractional entitlements at the equivalent
mid-market price for the Consolidated Shares on the day preceding the purchase.

If a shareholder holds more than 2,000 ordinary shares at the time the proposed
consolidation takes effect, then unless his or her shareholding is exactly
divisible by 2,000 he or she will be left with a whole number of Consolidated
Shares together with a fractional entitlement to a Consolidated Share, all of
which will be converted into New Ordinary Shares in the sub-division described
below, which will follow the consolidation.
The Record Date for the proposed consolidation will be the close of business on
5 August 2005 and, if approved by shareholders, the proposed consolidation will
become effective at that time, to be followed immediately thereafter by the sale
and purchase of the fractional Consolidated Shares, and then the sub-division,
each of which are described further below. The Record Date for the final
dividend is 8 July 2005, and therefore the consolidation and associated matters
will have no bearing on dividend entitlements.

Sale and Purchase of Fractional Consolidated Shares

Holders of only fractional entitlements to Consolidated Shares will receive a
proportional payment for their fractional share entitlement by cheque within 14
days of the consolidation taking place, and all such fractional entitlements to
Consolidated Shares which are purchased by the Company will either be cancelled
or held in treasury and converted into New Ordinary Shares in the sub-division
described below.

Share Sub-division

In order to avoid the share consolidation having a detrimental effect on the
market price of the Company's shares, and to avoid any confusion that might
otherwise arise from the share consolidation, the Board is proposing that,
immediately following the consolidation and the sale and purchase of the
fractional Consolidated Shares by the Company, each Consolidated Share of £100
each will be subdivided into 2,000 New Ordinary Shares of 5p each. The Record
Date for the sub-division will be the same as for the consolidation.

Share Rights

The New Ordinary Shares created by the consolidation and sub-division of the
Company's existing ordinary shares will have the same rights as the existing
ordinary shares including rights relating to dividends and voting, and the
proposed consolidation and sub-division is subject to and conditional upon the
New Ordinary Shares being admitted to trading to AIM. It is expected that
dealings in the existing ordinary shares will continue until close of business
on the Record Date and that admission of the New Ordinary Shares will become
effective and dealings for normal settlement will commence at 8 am on the date
one business day after the Record Date.

Expected Timetable of Events

Latest time and date for receipt of forms of proxy       3.00 pm on 26 July 2005
Annual General Meeting                                   3.00 pm on 28 July 2005
Record Date for the Share Consolidation                  4.30 pm 5 August 2005
Share Consolidation                                      5 August 2005
Sale and Purchase of fractional entitlements             5 August 2005
Share Sub-division                                       5 August 2005
Commencement of dealings in New Ordinary Shares          8.00 am 8 August 2005
CREST accounts credited with New Ordinary Shares         8 August 2005
Payment (where applicable) of fractional entitlements,   by 19 August 2005
despatch of certificates for New Ordinary Shares

Significant Shareholdings

The following shareholders have indicated that they will vote in favour of the
proposed consolidation:

Shareholder                                    Percentage shareholding

Panther Securities Plc and related parties      14.97%
Mr. J Kinder                                    13.40%
Trustees of the A F Bulgin Settlements          8.25%
Rathbone Nominees                               5.23%
Mr. & Mrs. R A R Bulgin                         3.45%

Recommendation

The Directors of the Company consider that the proposed consolidation, purchase
of own shares, and sub-division of the Company's shares are in the best
interests of the Company. Accordingly the Directors unanimously recommend that
shareholders vote in favour of the Resolutions set out in the Notice of the AGM
as they intend to do in respect of their own beneficial shareholdings of
2,795,562 representing 3.7% of the existing issued share capital of the Company
and non-beneficial holdings of 664,500 shares representing 0.9% of the existing
issued share capital of the Company.

Notice of an Annual General Meeting

Notice of the Annual General Meeting of the Company in the premises of Elektron
Plc, Alfreds Way, Barking, Essex, IG11 0AZ on Thursday 28 July 2005 at 3pm is
included on page 33 of the annual report and accounts which are also being sent
to shareholders.

ENDS

For further information please contact:
Adrian Girling                               Christopher Leigh
Executive Chairman                           Finance Director
Elektron Plc                                 Elektron Plc
Tel: [phone]                           Tel: [phone]

Michael Cornish
Beaumont Cornish Limited
Tel: [phone]


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