Acquisition

Eleco PLC
18 December 2000

18 December 2000



                                  ELECO PLC


        Eleco buys prize winning software and interface design company


Eleco plc announces a further acquisition into the field of specialist
software and interface design with the purchase of Forma Communications
Limited ('Forma'). Forma's skill base and design capability complement those
of MBA Computing Limited, the specialist construction software company
acquired by Eleco in September this year.

Forma specialises in electronic interface design and production and provides
solutions for dedicated software and internet based applications. Its clients
to date have spanned the construction, education, music and entertainment
sectors and include the Woolmark Company, the BBC, Sony and the Environment
Agency for whom Forma developed the award winning Riverside Explorer
educational CD Rom, which has been supplied to all schools in England and
Wales. Forma also designed and produced the SpeedDeck Designer 2 software,
which was released earlier this year.



John Ketteley, Executive Chairman of Eleco commented:

'Forma provides a benchmark for new media design, high impact content
presentation and award winning interface design. Media awards won by Forma
include the DTI Creative Concept Award, British Interactive Multimedia
Association and BAFTA interactive media awards.'

'Forma will add significantly to the range of computer software and IT
solution services that Eleco can now offer its customers, in its increasingly
technology-driven construction component businesses. Following on from our
acquisition of MBA Computing earlier this year, this latest acquisition will
further refine and develop the software products that the Group provides for
its customers and will be of particular relevance to future ecommerce
initiatives.'

'I believe that Forma is particularly well placed to develop continuing
professional development and technical training programmes to be delivered
over the internet. In addition to enhancing Eleco's initiatives in embracing
the new economy technologies, I look forward to Forma building on its success
to date in its other market sectors.'

The initial consideration will be £681,000 with a deferred payment of up to £
100,000 based on the trading performance of Forma for the year ended 31
December 2001.

Of the total initial consideration of £681,000, £135,000 is payable in cash,
the balance of £546,000 being satisfied by the issue of 1,820,000 new ordinary
shares of 10p each in Eleco, at 30p per share, including 200,000 shares to be
issued to John Ketteley, Eleco's Chairman in respect of his 10% interest in
Forma. The deferred consideration which maybe payable, will be available only
to the continuing Forma Executive Directors and will be satisfied in cash or
by the issue of further new ordinary shares of 10p each at the then ruling
share price. £22,000 of shareholder loans will be repaid by Forma, following
completion.

At 31 December 1999, the date of the last accounts, Forma had net assets of £
5,000 and for the year then ended incurred a loss before tax of £7,000.
Unaudited management accounts for the eleven months to 30 November 2000 showed
a profit before tax of £94,000.

Enquiries to:

John Ketteley, Executive Chairman     Tel: [phone]

David Dannhauser, Finance Director

Eleco plc

David Millham/Tarquin Edwards      Tel: [phone]

Millham Communications