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Alumasc Group Plc (ALU)

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Monday 16 December, 2002

Alumasc Group Plc

Planned closure of plant

Alumasc Group PLC
16 December 2002


                The Alumasc Group PLC ("Alumasc" or the "Group")


              Planned Closure of Alumasc Grundy Beer Barrel Plant


Alumasc announces that it intends to close the Alumasc Grundy factory for
manufacturing and repairing beer barrels in Burton Upon Trent at the end of
February 2003.

The loss of business that followed the recent sale of Alumasc Grundy's major
customers to overseas brewery companies was previously announced in the Group's
preliminary statement of results for the year ended June 2002.  In his statement
at the Alumasc Annual General Meeting, the Chairman confirmed that the situation
had become increasingly problematic for Alumasc Grundy in subsequent months as
decisions on future sourcing and maintenance of beer barrels had continued to
move demand away from products and services supplied by Alumasc Grundy.

The Board of Alumasc has concluded, with regret, that the Alumasc Grundy
business is no longer viable and that closure is inevitable.  Substantially all
the 63 employees active in this business will become redundant.

The costs of closure, including redundancy, are estimated at £900,000.  In
addition, previously written off goodwill of some £2.2 million relating to the
acquisition of Grundy (Teddington) Ltd in December 1988 will be dealt with in
accordance with FRS 10 under discontinued activities in the Group's accounts for
the year to June 2003. In the year to June 2002, Alumasc Grundy's profit before
tax was £1.16 million.

The closure will enable the approximately 10 acre site in Burton Upon Trent to
be cleared and made available for redevelopment.  As a result, the Group hopes
fully to recover the costs of closure, in addition to underlying book value of
£1 million.

Alumasc is pleased to confirm that Group trading for the current year remains in
line with market expectations.


Enquiries:

The Alumasc Group Plc                                              01536-383 844
  John McCall (Chairman)
  Paul Hooper (Group Managing Director)

Williams de Broe Plc                                               020-7588 7511
  David Lawman

Bankside Consultants Limited                                       020-7444 4166
  Charles Ponsonby



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