Acquisition

Senior PLC
30 January 2006


28 January 2006

Senior plc Acquires Sterling Machine Co., Inc

Senior plc ('Senior') is pleased to announce that it has acquired Sterling
Machine Co., Inc ('Sterling'), a manufacturer of precision machined parts for
the aerospace industry, based in Enfield, Connecticut, USA. The cash
consideration, including assumed net debt, was $37.6m (£21.1m(1)) of which $2.1m
(£1.2m(1)) related to the purchase of property. The acquisition is expected to
be immediately earnings enhancing.

Sterling is a manufacturer of precision metallic parts for the aerospace
industry using state-of-the-art production and process control systems to
machine steel, aluminium, magnesium and titanium parts from bar stock, forgings
and castings. The company is a pre-eminent manufacturer of transmission and
rotor-head helicopter components for military platforms, principally to its
largest customer, the Sikorsky Aircraft Corporation ('Sikorsky'). Sikorsky is
forecasting healthy increases in helicopter build rates over the next five
years, predominantly for military applications, with the demand increasing as a
result of both major modification and new start programmes.

Sterling, a family business, was founded in Enfield, Connecticut, in 1956 and
has been owned by two brothers, Greg and Tom Caravella, since 1994. Greg
Caravella will be staying on with the company for up to six months post
acquisition to assist with the transition to Senior.

In 2003, due to continued expansion, the business relocated to a new purpose
built factory investing at the same time in a number of new modern machines. The
property, owned by the Caravella brothers through a separate legal entity, was
purchased by Senior as part of the transaction.

For the year to 31 December 2005, Sterling's results (unaudited) recorded sales
of US$18.8m (£10.6m(1)) and profit before interest and tax of US$4.2m (£2.4m
(1)). As at 31 December 2005 gross assets, including property, were US$15.7m
(£8.8m(1)).

The acquisition of Sterling is in line with Senior's strategic objective to
focus on the aerospace and automotive original equipment markets and the Board
of Senior believes that the acquisition of Sterling offers many benefits and
opportunities including:

• The acquisition of a well established, well managed, profitable
  business enjoying a high level of customer loyalty;
• The addition of a major new customer, Sikorsky, to the Aerospace
  Division;
• Entry into a growing military helicopter market;
• The purchase of a modern facility with expansion opportunity; and
• The benefit of additional Group sales with minimal increase in
  central and divisional costs.

Senior's trading remains in line with the pre-close statement of 19 December
2005.

Commenting on the acquisition, Graham Menzies, Chief Executive, Senior plc, said
'This is a significant development for Senior, being the first acquisition the
Group has undertaken for six years. The Group is very pleased to have acquired
Sterling, a profitable aerospace business with a strong market position,
excellent management and good growth prospects. The acquisition, together with
the continuing growth of the general aerospace industry, the Group's growing
automotive prospects, particularly in diesel applications from 2007 onwards, and
the recovering profitability of the industrial division leave the Group well
placed for the future.'



Notes:
(1) The exchange rate used for the above £ sterling equivalents is $1.78 : £1
being the rate prevailing at the close of business on 26 January 2006.

For further information please contact:

Senior plc
Graham Menzies, Group Chief Executive 01923 714702
Mark Rollins, Group Finance Director 01923 714738

Finsbury Group
Adrian Howard 020 7251 3801

This announcement, together with other information on Senior plc, may be found
at: www.seniorplc.com

Note to Editors:
Senior is an international manufacturing group with operations in 11 countries.
Senior designs, manufactures and markets high technology components and systems
for the principal original equipment producers in the worldwide aerospace,
automotive and specialised industrial markets.




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