STRONG UNDERLYING GROWTH AND EXCELLENT CONTRIBUTION FROM ACQUISITIONS

Umeco plc, the leading international provider of value-added services and materials to the aerospace, defence and other industries, announces its preliminary results for the year ended 31 March 2005.

Financial highlights

· Turnover increased by 31 per cent to £242.4 million (2004: £184.5 million)

· Profit before tax* increased by 46 per cent to £14.0 million (2004: £9.6 million)

· Earnings per share* up 20 per cent to 28.8p (2004: 24.0p), after adjusting for April 2004 rights issue

· Recommended increased final dividend of 8.75p per share (2004: 8.5p), resulting in a total dividend of 13.25p per share (2004: 12.5p), up 6 per cent

· Operating margin* increased to 6.8 per cent (2004: 5.7 per cent)

· Strong operating cash flow of £13.8 million (2004: £9.7 million)

Operational highlights

· ACG and AMS, both acquired during the year, performed ahead of initial expectations

· At constant exchange rates, underlying sales increased by 12 per cent and operating profit was up by 13 per cent

· Recovery in civil aerospace market started midway through the year

· US defence market remains strong

· Global demand for advanced composite materials increasing at high rate

· Current year has started with strong order books and healthy level of new business activity

(* adjusted to exclude goodwill amortisation and exceptional items)

Clive Snowdon, Chief Executive of Umeco plc, commented:

"Umeco has had an excellent year with good results from our existing activities and with the acquisitions performing even better than we first expected."

"The civil aerospace market, our principal sector, is now recovering with build rates for new aircraft expected to continue to rise over the medium term. The US defence market remains strong, and global demand for our advanced composite materials is increasing at a high rate, in the aerospace, motorsport and upper-end automotive markets in particular."

"We continue to extend our international presence and to invest in capacity. For the current year, a strategic focus will be the development of our activities in the rapidly expanding Far Eastern market."

We have started 2005 with a strong order book and, with a clear strategy for growth in place, we are in a position to look forward to a period of sustained progress."

For further information, please contact:-

Umeco plc

Tel: 01926 331 800

Clive Snowdon, Chief Executive

John Beaumont, Finance Director

www.Umeco.com

Hogarth Partnership

Tel: 020 7357 9477

John Olsen

Barnaby Fry

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