Umeco plc, Europe's leading provider of value-added distribution services to the aerospace and defence industries, announces its preliminary results for the year ended 31 March 2004.

>> Turnover increased by 2% to £184.5 million (2003: £181.1 million), against the background of a 14% fall in the new build of civil aircraft;

>> Profit before tax* of £9.6 million (2003: £10.2 million); adversely impacted by £0.9 million of exchange rate effects compared to 2003;

>> Earnings per share* of 25.4 pence (2003: 27.7 pence);

>> Recommended unchanged final dividend of 8.5 pence per share, resulting in an unchanged total dividend for the year of 12.5 pence;

Strategic Developments:

>> New contract to supply aerospace chemicals to Lufthansa Technik AG announced in September 2003

>> Major new contract to supply Bombardier Aerospace with a wide range of small components announced in January 2004

>> Acquisition of 80% of Tailored Logistics Corporation completed in February 2004

>> Acquisition of Advanced Composites Group completed in May 2004

>> Major extension of supply contracts with Lockheed Martin announced in May 2004

(* adjusted to exclude goodwill amortisation and exceptional items)

Clive Snowdon, Chief Executive of Umeco plc, commented:

"The Group has performed well over the last financial year, achieving underlying sales growth, consistent profitability and good operating cash flows. These results, against the backdrop of difficult market conditions, demonstrate that the demand for our outsourcing services remains robust in the aerospace market.

"Since the year end, the Group has acquired the Advanced Composites Group which deepens our commitment to the high growth and high margin composites market. In our components business, our continued focus on large-scale, sophisticated contracts has been rewarded by a series of new wins, including long term contracts with Bombardier Aerospace and Lockheed Martin.

"There are continuing signs of recovery in the civil aerospace market and the US defence market remains strong. These factors, together with the expected contribution from the new contracts we have secured and the acquisitions we have made, gives us considerable confidence going forward."