Acquisition

Renold PLC
21 May 2007


Renold plc
('Renold' or the 'Group')


Acquisition in China


Renold is pleased to announce the acquisition of a 90% interest in the
industrial chains manufacturing business of HangZhou ShanShui ('HZSS').


HZSS, operates from a large production plant based in Zhejiang Province,
People's Republic of China, has annual turnover of approximately US$9m and more
than 400 highly skilled employees. This workforce will represent about 30% of
Renold's worldwide employees directly involved in the manufacture of chains. The
agreed price of US$4m represents net asset value and will be settled in cash.
The acquisition will significantly increase the Group's future available
manufacturing capacity, and will remove the need for US$8m of budgeted capital
expenditure for this year.


The acquisition, which has received regulatory approval in China, and which is
expected to complete in June, will significantly increase the percentage of
Renold production in low cost countries ('LCCs'). The Group's 'PACE' objective
of growing headcount in LCC chain manufacturing to over 40% of the Group total
by the end of 2008/9, was set out in the Group's announcement of 8 March 2007.


The acquisition also reinforces the Company's position as a global leader in the
manufacture of industrial chains by opening up new markets and customers in
China and South East Asia.


The business will be called Renold Hangzhou, and is expected to increase group
sales and be earnings enhancing after 12 months. The outlook for the sectors
that it serves remains broadly positive with particular opportunities in its
domestic markets.


An update on the progress of 'PACE' and the impact of this acquisition will be
included in the results announcement for the year to 31 March 2007 which is
expected to be released in June.


Bob Davies, Chief Executive of Renold, commented:


'The purchase of this substantial Chinese manufacturing facility will underpin
the execution of our 'PACE' restructuring and will boost margins to a run rate
greater than 10% by 2008/9.'


'HZSS has the strongest technology of all the potential acquisition targets we
looked at.  It also provides a major growth opportunity in the domestic Chinese
market and into other parts of South East Asia.'


                                                                     21 May 2007


Enquiries:

Renold plc                                               0161 498 4517
Bob Davies, Chief Executive
Peter Bream, Finance Director

College Hill                                             020 7457 2020
Matthew Gregorowski
Nicholas Potter


NOTE FOR EDITORS:


Renold is a leader in the manufacture of industrial chains and also manufactures
a range of gears and couplings which are sold throughout the world to a broad
range of original equipment manufacturers and distributors. Its products are
used in a wide variety of industries including manufacturing, transportation,
energy, steel, and mining. Renold has a well deserved reputation for quality
that is recognised worldwide.


The Group has 13 manufacturing plants throughout the world and employs 2500
staff. It is currently expanding its geographical footprint by increasing its
manufacturing presence in 'low cost countries'.


Further information about Renold can be found on the website www.renold.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange