On 1 June 2001, Umeco announced a 1 for 4 Rights Issue of up to 4,857,743 New Ordinary Shares, at 555p per share.

The Rights Issue raised approximately £25.9 million (net of expenses). As announced on 1 June 2001, these proceeds will be used to finance the consideration of the U.S.$22.0 million (approximately £15.5 million) acquisition of Abscoa Industries Inc., a leading North American provider of inventory management and fastener distribution programmes. The balance will be used to eliminate some of Umeco's existing short-term borrowings. The acquisition of Abscoa represents a significant step towards realising Umeco's strategic goal of becoming a leading global provider of value-added distribution services to the aerospace and defence industries.

The latest time and date for acceptance and payment in full under the terms of the Rights Issue was 3.00pm on 22 June 2001. At the time of the announcement, Umeco had received irrevocable undertakings from certain Directors and their connected parties to take up their rights to subscribe for 11,131 New Ordinary Shares. These New Ordinary Shares have now been subscribed for in full.

The Board of Umeco announces that, in total, valid applications have been received in respect of 3,982,165 New Ordinary Shares, representing approximately 81.98 per cent of the New Ordinary Shares being issued pursuant to the Rights Issue.

It has not been possible to procure subscribers for those New Ordinary Shares for which valid acceptances were not received at a price (net of expenses) in excess of the Rights Issue price. Accordingly, the sub-underwriters will be required to subscribe at the Rights Issue price of 555 pence per share for the balance, excluding fractional entitlements, of 875,285 New Ordinary Shares for which valid acceptances were not received. There are no net proceeds which fall to be distributed to the Qualifying Shareholders who did not take up their entitlements in accordance with the terms of the Rights Issue.

Dealings in the New Ordinary Shares commenced, fully paid, at 8.00 am on 25 June 2001. It is expected that definitive share certificates in respect of the New Ordinary Shares will be dispatched by first class post by 2 July 2001.

Terms defined in the Company`s prospectus dated 1 June 2001 shall, unless the context requires otherwise, have the same meanings in this announcement.