Umeco plc, the leading international provider of value-added services and composite materials to the aerospace, defence and other industries, announces that its Repair & Overhaul Division subsidiary AEM Limited ("AEM") has acquired the entire share capital of Aviation Windings Limited ("AW") from the shareholders of The Deritend Group.

Umeco also announces that its Repair & Overhaul Division has today signed an agreement to provide windings services to Goodrich Control Systems Limited, AW's major customer, for the next five years.

AW provides highly specialized expertise in the manufacture and repair of wound components used primarily in electric motors and generators for in-flight operations. The company's strong capabilities in the winding arena make AW one of the market leaders in its field, complementing AEM's broad portfolio of repair and overhaul services.

AW is based in Luton and employs 30 staff, supporting airlines, third party maintenance facilities and OEM's in both civil and defence sectors of the aerospace market and is one of the three leading companies in Europe in its field.

The purchase price is £1.6 million payable in cash. In addition AEM is taking over the indebtedness of AW. Additional consideration of up to £0.5 million is payable based on the performance of AW in the 12 months following completion.

Clive Snowdon, Chief Executive of Umeco, commented:

"We have made no secret of our strategic aim to expand our Repair & Overhaul Division. AW closely complements AEM's electrical component repair activity, but significantly broadens their capability in this area. Furthermore, AW will benefit from AEM's international sales and marketing presence and we are delighted to announce the five year agreement with Goodrich this morning, demonstrating the continued leading position of AW in the windings market."

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For further information, please contact:

Umeco plc
Clive Snowdon, Chief Executive 01926 331800

Hogarth Partnership Ltd
John Olsen / Barnaby Fry 020 7357 9477

(Notes to editors attached).

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Notes to editors

Umeco plc is a leading international provider of value-added distribution services and composite materials primarily to the aerospace & defence, automotive, motorsport, and wind turbine industries.

Listed on the London Stock Exchange, Umeco had turnover of £242.4 million in the year to 31 March 2005.

Umeco is managed through three divisions:-

Umeco Components - a leading international provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market. With its specialisation in the supply of small components and sophisticated IT systems, its growing global customer base can enjoy significant operational, cost and working capital benefits.

Customers include Rolls-Royce plc, BAE SYSTEMS, Snecma Groupe, Parker Aerospace, Goodrich Aerospace, Bombardier, Lockheed Martin and the US Department of Defense.

Umeco Composites - a provider of a complete range of advanced composite materials and specialist chemical products principally to the aerospace, motorsport, automotive and wind energy markets. A growing range of value-added outsourcing services is provided to major customers.

Customers include Boeing, Airbus, BAE SYSTEMS, Goodrich Aerostructures, British Airways, Lufthansa Technik, a number of manufacturers of high performance super cars and all the Formula 1 teams.

Umeco Repair and Overhaul - a provider of a comprehensive accessory repair and installation service to operators of fixed and rotary wing aircraft ranging in size from executive jets through to a Boeing 747.

Customers include British Airways, KLM, Swiss, Alitalia Express, Bristow Helicopters, BAE SYSTEMS, Saab Aircraft and Pratt & Whitney.