Umeco plc, Europe's leading provider of value-added distribution services to the aerospace and defence industries, announces that Aeropia, its chemicals and associated materials supply business, has been awarded a minimum two year contract to supply aerospace chemicals to Lufthansa Technik AG in Hamburg. The contract is worth approximately 7.0 million (£4.8 million*) over the period and comes into operational effect on 1st November 2003.

Based in Hamburg, Lufthansa Technik AG is one of the world's market leaders in the Maintenance, Repair and Overhaul (MRO) of commercial aircraft, engines and components.

Umeco has established a new company in Germany, Aeropia Logistik GmbH ("ALG") to manage the contract. Aeropia owns 74.8% of ALG, with the remaining 25.2% held by Mr Andreas von Loessl, who is joint managing director with operational responsibility for ALG. Steve Rice, currently Managing Director of Aeropia Limited, is also a joint managing director of ALG. Aeropia will provide funding, IT and other management services including procurement and accounting.

Clive Snowdon, Chief Executive of Umeco plc commented:

"This exciting contract win represents a further milestone in our ongoing strategy of building market share across Europe, as customers continue to pursue opportunities to improve their own operating performance through increased outsourcing of value-added services. As one of the market leaders, Lufthansa Technik AG is an important customer for Aeropia, and the opening of ALG, together with our partnership with Andreas von Loessl, underline our commitment to developing a long term working relationship with Lufthansa."

(* Exchange rate: 1 = £0.69)