Umeco plc, an international provider of supply chain and repair and overhaul services and advanced composite materials primarily to the aerospace & defence industries, is pleased to announce that its Composite Division subsidiary company, GRPMS, has agreed to acquire from the Estonian subsidiary of Ashland Composite Polymers, a business group of Ashland Performance Materials, a division of Ashland Inc. (NYSE: ASH) ("Ashland"), the inventory and fixed assets related to their distribution business in Estonia. The acquisition is expected to complete on 31st August 2007.

GRPMS has also agreed to a sole distribution agreement with Ashland, a leading worldwide resin and gelcoat supplier, in Estonia. The existing distribution agreement between Ashland and GRPMS with respect to the UK, Ireland and Scandinavia will remain unchanged.

GRPMS expects to grow the sales of both Ashland and third-party products, based upon its wide ranging supplier relationships developed through its UK and Scandinavian based businesses.

Tony Bibby, Managing Director of GRPMS, said: "We are delighted to announce this acquisition and the related distribution agreement with Ashland. Estonia is a growth region and we are now well placed to play an integral part in that market growth."

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