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Alumasc Group Plc (ALU)

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Friday 08 April, 2005

Alumasc Group Plc

Statement re MG Rover

Alumasc Group PLC
08 April 2005


                              THE ALUMASC GROUP plc

                              Statement re MG Rover

Following recent developments at MG Rover, the Alumasc Board has issued the
following statement:

• While the future of MG Rover has been uncertain for some time, the
  decline in terms of vehicle sales has been evident for many months.

• As declining volumes made business with Rover increasingly uneconomic,
  Alumasc has taken necessary steps to protect its own business, including the
  pursuit of new customers in other sectors.

• As a result of the actions taken, Alumasc's exposure to the Rover
  group is limited to approximately £0.2 million, with a similar potential write
  off of dedicated tooling, equipment, stocks etc.

• In the half year to December 2004, sales to MG Rover and Powertrain
  amounted to £1.9 million, 3% of the group's sales. Additional sales of 
  £0.6 million (1% of the group's sales) were made to other suppliers to Rover.

• Paul Hooper, Chief Executive, commented "While developments at Rover
  are a matter for regret, Alumasc has been reviewing manufacturing capacity in
  the light of falling automotive demand and formal consultation has been under
  way in one of our facilities since February. The aim is to align capacity with
  the future needs of our customers while enhancing divisional profitability."

Note for Editors:

Alumasc is a high specification building products and precision engineering
company. In the year to June 2004, it made profit before tax of £8.9 million on
turnover of £115 million and had no borrowings at the year end. The precision
engineering division accounted for one third of group turnover and operating
profit.

Enquiries:

The Alumasc Group plc                                            01536-383 844
John McCall (Chairman)
Paul Hooper (Chief Executive)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166




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