Proposed Development

Molins PLC
7 January 2002



                   Proposed Development of Saunderton Site



Molins PLC, the international specialist engineering company, announces the
formation of Saunderton Estates for the purpose of the development of some 17
acres of land at Saunderton.

Saunderton is the principal site for the Tobacco Machinery operations of
Molins and extends to some 26 acres. During the last two years significant
changes have been made to improve operational efficiency and customer service
such that it is now expected that some 17 acres of the site will shortly
become available for redevelopment. The present activities on the site are
principally the design and development of machinery, logistics (comprising
inventory warehousing and management, and customer service), and a high
technology machining facility. These activities are progressively being
concentrated on to a 9-acre area of the site where the main building is
located.

Some of the existing buildings on the area for redevelopment are being let on
short-term leases. These leases produced rentals of £0.4 million in 2001.
Rentals increase to £0.9 million in 2002 and £1.1 million in 2003.

It is planned to develop the 17 acres to produce 300,000 square feet of modern
office accommodation in a landscaped business park. Wilks Head & Eve,
Chartered Surveyors, have estimated the value of the 17-acre site at £13.2
million on an open market basis, increasing to £22.5 million if the
development profits accrue to Saunderton Estates.

The land and buildings which Molins plans to retain have been valued by Wilks
Head & Eve at £6.5 million on an existing use basis. This amount is
approximately equivalent to the present carrying value of the whole site in
the books of Molins PLC.



Enquiries: Molins PLC

Peter Byrom, Chairman

David Cowen, Group Finance Director

Tel: [phone]



Issued by: Citigate Dewe Rogerson

Margaret George

Tel: [phone]