Restructure Proposals

Weir Group PLC
5 July 2001

                              THE WEIR GROUP PLC

                           DISPOSAL AND WITHDRAWAL

                           FROM NON-CORE BUSINESSES

                                                       Thursday, 5th July 2001

                                                         For immediate release




As part of its strategy to concentrate on core businesses with a significant
market share, The Weir Group has sold Weir Systems Limited and is in the
process of withdrawing from three other non-core businesses. At the same time,
the Group continues to seek value enhancing acquisitions to grow its core
businesses.


Weir Systems, which provides computer software and services, has been bought
by a subsidiary of Maxima Information Group Ltd of Cheltenham. The sale
proceeds are undisclosed, but amount to less than 1% of the net asset value of
The Weir Group. The 84 staff who are employed in Glasgow, Solihull and
Nottingham have transferred with the business.


The Group has also been seeking buyers for a further three non-core businesses
but with continuing difficult market conditions in the UK no progress has been
made to date. The Group has therefore concluded that it should withdraw from
those businesses following completion of existing contracts. A consultation
process has commenced with the affected employees.


The operations involved are Tooling Products in Langrish, Hampshire, and G
Perry in Leicester, suppliers of equipment to the automotive industry, and the
Manchester operation of Strachan & Henshaw (formerly known as Bridgetest
Holdings) which supplies material handling equipment to the nuclear industry,
mainly BNFL. The principal Strachan & Henshaw business in Bristol is
unaffected.


The proposed closures are likely to result in around 150 job losses at
Strachan & Henshaw, 65 at G Perry and 120 at Tooling Products.


In the year to end December 2000 these four businesses incurred an operating
loss of £1.3 million on sales of £28 million.


The sale and closures will result in an estimated exceptional charge in Group
results for 2001 of £15 million, of which approximately half relates to asset
impairment and goodwill which has previously been written off to reserves. The
initial cash outflow will be fully recouped from the release of working
capital and the sale of fixed assets. In accordance with FRS 11, asset
impairment and goodwill write off amounting to £6million will be included in
results for the first half of 2001.


Weir Group chief executive, Mark Selway, said: 'Weir Systems is a company
focussed in the IT sector and we believe it has greater opportunity for
development under different ownership.


'We recognise the other changes will be painful for some of our employees but
during the consultation process we shall attempt to address their issues and
any interest in buying those businesses will continue to be given serious
consideration'

                                                                          ENDS

For further information contact:

Mark Selway, Group Chief Executive, Tel. [phone]

David Dunbar, Chief Operating Officer, Tel. [phone]

Helen Walker, Group PR Manager, Tel. [phone]

Suzanne Bartch, The Maitland Consultancy, Tel. [phone]