SUCCESSFUL ACQUISITIONS AND STRONG PERFORMANCE IN COMPOSITES DRIVE FIRST HALF GROWTH

Umeco plc, Europe's leading provider of value-added distribution services and composite materials to the aerospace and defence industries, announces its interim results for the six months ended 30 September 2004.

· Turnover increased by 18% to £108.7 million (2003: £91.8 million), on the back of strong contributions from the recent acquisitions;

· Profit before tax* up 23% to £5.4 million (2003: £4.4 million); with the acquired companies, net of related funding costs, contributing £0.9 million of the increase;

· Earnings per share* of 11.2p (2003: 11.3p);

· Increased interim dividend of 4.5p per share (2003: 4.0p);

· Improvement in gross margins to 25.3% (2003: 22.4%);

· Continued development of activities with Rolls-Royce in Europe;

· Bombardier contract implementation to be accelerated following successful pilot scheme;

· Strong performance from Advanced Composites Group since acquisition and strategy in place to capitalise on its significant growth potential.

(* adjusted to exclude goodwill amortisation and exceptional items)

Clive Snowdon, Chief Executive of Umeco plc, said:

"Umeco has seen a successful first half and our recent acquisitions have more than lived up to our expectations. We anticipate an increase in activity levels over the coming months as conditions in our principal market of civil aerospace continue to improve. Our strong order book, combined with the increased contribution we can expect to see from newly acquired businesses and accelerated contract programmes, gives us a high level of confidence in our immediate and long term prospects."