Umeco plc Acquisition of Scandinavian Distribution Businesses

Umeco plc ("Umeco") is pleased to announce that its Composites Division subsidiary GRP Materials Supplies Limited ("GRPMS") has agreed to acquire from the Scandinavian affiliates of Ashland Composite Polymers, a business group of Ashland Specialty Chemical, a division of Ashland Inc. (NYSE: ASH) ("Ashland"), property and other fixed assets related to their distribution businesses in Sweden, Denmark and Norway. The purchase price is 0.8 million euros subject to inventory value adjustment on completion. The acquisition is expected to complete on 1st July 2005.

GRPMS has also agreed to a sole distribution agreement with Ashland in Sweden, Denmark and Norway. The DERAKANE® range of products recently acquired from The Dow Chemical Company by Ashland are included in this agreement. Ashland, a leading worldwide resin and gel coat supplier, will continue to supply its own products to certain major accounts in these territories on a direct basis. The existing distribution agreement between Ashland and GRPMS with respect to the UK and Ireland will remain.

On a pro-forma basis the acquired business had sales for the 12 months ended 30th September 2004 of 8.0 million euros. GRPMS expects to grow the sales of both Ashland and third-party products based upon its wide-ranging experience and supplier relationships developed through its UK based business.

Clive Snowdon, Chief Executive of Umeco, commented: "This acquisition cements GRPMS' relationship with Ashland in Europe and represents an excellent opportunity for GRPMS to expand its operations in the UK, Ireland and Scandinavia."