Umeco plc, ("Umeco"), Europe`s leading provider of value-added distribution services to the aerospace and defence industries, today announces its interim results for the six months ended 30 September 2001.

>> Turnover up 37% to £99.6 million (2000: £72.9 million)

>> Profits before taxation and goodwill amortisation up 20% to £5.7 million (2000: £4.7 million)

>> Earnings per share excluding goodwill amortisation up 5.6% to 17.0 pence (2000: 16.1 pence)

>> Interim dividend unchanged at 3.25 pence per share.

>> Prompt action taken by management to mitigate impact on aerospace-related activities resulting from recent world events.

>> Acquisition of Abscoa Industries Inc. completed on 5 June; strategic benefit underlined by US Government`s recent award of Joint Strike Fighter contract to Lockheed Martin - an important Abscoa customer.

Clive Snowdon, Umeco's Chief Executive said:

"The Group was performing well until the tragic events which took place in the United States on 11 September, with trading having been in line with our expectations across the majority of our businesses. In light of the expected impact of these events on our business, we are taking all appropriate action to reduce costs and working capital levels, whilst at the same time maintaining the highest level of service to our customers."

"During the past few years, there has been a marked trend towards outsourcing. The aerospace and defence industry is now likely to accelerate this process, as they seek to realise greater efficiencies in their supply chain management. In the medium term trading conditions will be challenging but, with Umeco's strong international presence, we are well placed to capitalise on this growth area."