Completion of Acquisition

Following the announcement on 21 May 2007 of the agreement to acquire a 90% interest in the business of HangZhou ShanShui ("HZSS"), we are pleased to confirm the completion of this important strategic acquisition. The purchase of this substantial Chinese manufacturing facility will underpin the execution of our ‘PACE’ restructuring and will boost margins to a run rate greater than 10% by 2008/9.

HZSS has the strongest technology of all the potential acquisition targets we looked at. It also provides a major growth opportunity in the domestic Chinese market and into other parts of South East Asia.

Bob Davies
18 June 2007