Disposal of Cycles Division

Reece PLC
14 April 2000


DISPOSAL OF CYCLES DIVISION

The  Company  is  pleased to announce that  its  wholly  owned
subsidiary,  Service  (Engineers) PLC ('Service  (Engineers)')
has  today  entered  into  a  conditional  sale  and  purchase
agreement  for the disposal of the Cycles Division to  GW  112
Limited,  a  company which is wholly owned by Mike Norris  and
his  wife.   Because of the relative size of the disposal  and
the  fact  that GW 112 Limited is controlled by the  Company's
Managing  Director, the agreement is conditional, inter  alia,
upon  the  approval  of  ordinary  shareholders.   A  circular
convening the necessary Extraordinary General Meeting will  be
sent to shareholders in due course.

The  consideration  payable under  the  agreement  amounts  to
£860,000  of  which £510,000 is payable in cash on  completion
(subject  to  subsequent adjustment by reference  to  the  net
asset  value on completion as detailed below) with the balance
of  £350,000  payable in cash as to £100,000 six months  after
the  completion date, £125,000 on the first anniversary of the
completion date and as to £125,000 eighteen months  after  the
completion date.  A cash sum, currently estimated to amount to
£60,000,  equal  to  75 per cent of the value  of  non-current
trade  debtors is also payable on completion which is expected
to occur on 5 May 2000.

The  consideration is subject to adjustment depending  on  the
net asset value on completion. To the extent that the value of
the  net  assets  being disposed of less the sum  of  £200,000
differs  from  the sum of £860,000 the consideration  will  be
adjusted by an amount equal to the difference.  As a result of
this,  the  transaction is expected to result  in  a  loss  on
disposal  of  some  £300,000, excluding any loss  relating  to
goodwill.

The  Cycles Division is involved in the distribution of cycles
and  cycle  accessories,  under the  'Probike'  and  'Univega'
brands,  which  are  sold  principally  to  independent  cycle
dealers  in  the  United Kingdom and Eire.   The  majority  of
products  are imported from the Far East.  The Cycles Division
operates  from three leasehold warehouses in the West Midlands
and  has  a team of salesmen who visit customers on a  regular
basis.

During  the  year  ended 31 December 1998 the Cycles  Division
made  operating  losses of £143,000 (after management  charges
and  exceptional  administrative  expenses  of  £230,000)   on
turnover  of  £5.97  million.   At  that  date  it   had   net
liabilities  of £138,000.  In the half year to 30  June  1999,
the division reported unaudited operating losses of £72,000 on
turnover of £2.35 million.

The  net sale proceeds will be applied in reducing the Group's
indebtedness.

On  completion  of  the proposed Disposal,  Mike  Norris  will
resign  from  the Board without compensation.   The  Company's
remaining  businesses,  Service  (Engineers)  and  APP,   will
continue  to  be  run  by  their  existing  management  teams.
Discussions continue on the sale of a further division of  the
Group and an announcement will be made when appropriate.   The
Directors are seeking to diversify the Group's activities into
other areas.  Any such diversification is likely to involve  a
substantial  acquisition and shareholders will be informed  of
any significant developments.