STRONG UNDERLYING GROWTH AND FURTHER EXPANSION THROUGH ACQUISITIONS AND INVESTMENT

Umeco plc, an international provider of supply chain and repair & overhaul services and advanced composite materials primarily to the aerospace & defence and automotive industries, announces its preliminary results for the year to 31 March 2006.

Financial highlights - adjusted IFRS basis

· Revenue increased by 21 per cent to £293.2 million (2005: £242.4 million);

· Profit before tax increased by 34 per cent to £18.1 million (2005: £13.5 million);

· Earnings per share up 23 per cent to 30.9 pence (2005: 25.2 pence);

· Strongly supported rights issue in December 2005 raised £48.4 million;

· Recommended increased final dividend of 9.50 pence per share (2005: 8.75 pence), resulting in a total dividend of 14.50 pence per share (2005: 13.25 pence), up 9 per cent;

Operational highlights

· Strategic acquisitions in Components and Repair & Overhaul, including;

• Provest, a Milan based distributor of aerospace components;
  
• Aviation Windings, involved in the manufacture and refurbishment of wire wound electrical assemblies;
  
• Aeromedic Innovations, a supplier of aviation medical kits.
  

· Expansion into Asia and important China market through a memorandum of understanding with Xi'an Yanlaing Aircraft Manufacturing Base to establish a wholly owned commercial enterprise;

· Continued strong recovery in civil aerospace market;

· Global demand for advanced composite materials increasing at a high rate;

· Ulogistics signed major, long term contract with Goodrich Actuation Systems in Europe;

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

· Major investment in the expansion of Advanced Composites Group ('ACG') facilities in Derby, due for completion in summer 2006;

· Further strengthening of relationship with McLaren Automotive through acquisition of Aerodyne Advanced Composites ('AAC'), which has a contract in relation to the sole supply of specified component parts to the Mercedes-Benz SLR McLaren super sports car;

· Rebranding of Umeco and its subsidiaries under one common brand announced today.

Clive Snowdon, Chief Executive of Umeco plc, commented:

"Umeco has had another excellent year with strong results from our existing activities and with recent acquisitions performing ahead of expectations.

"In the last two financial years Umeco has delivered high rates of growth from our market leading positions and we continue to strive to develop the Group in a disciplined manner. We are extending our international presence into China and the Far East and are investing heavily in capacity to meet the growing demand for our products and services. With our enlarged financial capacity we continue to seek bolt-on acquisitions, but will only acquire businesses if we believe they will improve the overall performance of the Group.

"The civil aerospace market, our principal sector, has continued its recovery during 2005, with build rates for new aircraft expected to continue to rise over the medium term. In addition, global demand for our advanced composite materials has continued to increase at a rapid rate during the year, especially in the aerospace, wind energy and upper-end automotive markets.

"We have today announced the rebranding of the Group to reflect the true international reach of our brands and to present our markets with a unified vision and set of values that reflect our ambitious future growth plans.

"We have started the current financial year with record order books and we are in a position to look forward to a period of sustained progress."

For further information, please contact:-