Disposal

Melrose PLC
18 May 2007


Melrose PLC


FOR IMMEDIATE RELEASE                                                18 May 2007


                                  Melrose PLC

                           Disposal of McKechnie PSM


Melrose PLC ("Melrose") announces that it has completed the sale of part of
McKechnie PSM ("PSM") to Petrus Holding (BVI) Limited, a company controlled by
EQT Greater China II Limited Partnership ("EQT"), for US $58 million in cash
payable at completion. EQT is a group of private equity funds that manages
approximately €10.5 billion in equity.

PSM manufactures and distributes specialised fasteners and joining systems
primarily for the IT and automotive markets. The sale does not include the
specialised Thread Locking and Sealing and Canning Brett businesses based in
Europe which are included within the PSM division for segmental reporting
purposes.

In the year ended 31 December 2006 the part of McKechnie PSM being sold had
headline operating profit* of £4 million and gross assets of £32 million.

Melrose will retain the proceeds of sale and these will be used together with
the proceeds of the previously announced sale of McKechnie Aerospace for
corporate purposes and to fund a return of value to shareholders in due course.

*before exceptional costs, exceptional income and intangible asset amortisation
other than computer software.


Enquiries
M: Communications                           020 7153 1530
Nick Fox
James Hill


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