Acquisition

Molins PLC 13 February 2002 ACQUISITION OF ARISTA LABORATORIES, INC Molins PLC, the international specialist engineering company, has agreed to acquire Arista Laboratories, Inc., an independent smoke constituent analytical facility. The acquisition extends considerably Molins' existing scientific services. Arista, formed by Battelle Memorial Institute, is an analytical testing company designed to meet the regulatory driven demand for the characterisation of tobacco smoke and leaf. Arista specialises in providing routine and non-routine determinations of the full range of smoke constituents to the well defined quality standards of ISO 17025. Based in Richmond, Virginia, Arista commenced operations in 2000 and now has 22 employees. In its latest audited accounts to 30 September 2001 it reported a trading profit for its first full year of $240,000 on sales of $1.9million. Arista is forecasting a significant increase in both sales and profits for the current year. Shareholders' funds at the date of acquisition are expected to be in the region of $0.5million. Molins is initially paying a cash consideration of $3.8 million, with a potential further payment of $0.7 million to be made within 12 months, dependent on certain performance criteria. Dr Steven McLaughlin, Vice President and General Manager of Health and Human Services Market Sector at Battelle will remain a Director of Arista. Battelle is entering into a consultancy agreement with Arista to provide technical support. Through the acquisition of Cerulean (formerly Filtrona Instruments and Automation) in 2000, Molins is able to provide a full analysis of the physical properties of cigarettes. Cerulean manufactures smoke analysis equipment and has extensive knowledge of the nature of the analysis of cigarette smoke. The acquisition of Arista extends considerably the range of services that Molins Scientific Services is able to offer. It also provides for the first time the ability to offer services through a fully independent laboratory. Molins values its association with Battelle which was founded in 1925. It has a staff of 7,500 scientists, engineers and support specialists and serves some 2,000 companies and government agencies around the world. Major technology centres are located in Columbus, Ohio; Richland, Washington; and Geneva, Switzerland. Battelle operates the Pacific Northwest National Laboratory. It derives revenues of $1 billion a year from its services to industry in developing new technologies and products. 13 February, 2002 Enquiries: Molins PLC Tel: 01908 219000 Peter Byrom, Chairman David Cowen, Group Finance Director Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571 Margaret George This information is provided by RNS The company news service from the London Stock Exchange

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