AGM Statement by the Chairman

08 Mar 2001

In my recent Chairman’s Statement, I indicated considerable confidence in the future of the company. The acquisition of Kilgore announced at that time is a major step in our expansion programme and I am happy to say that our closer involvement with Kilgore makes us even more convinced of the excellent prospects for this new member of our Group.

Today I can announce that Kilgore has reached agreement (subject to certain regulatory matters) to acquire the infra red decoy business and certain assets of a division of Martin Electronics Inc of Florida, a manufacturer for the US Department of Defense of identical countermeasure products to those of Kilgore. The acquisition, which will be funded out of existing facilities, brings with it an order book of US$15m. This additional business will be manufactured at the Kilgore plant in Tennessee. A further announcement on the acquisition, which is expected to be completed by the end of April 2001, will be made in due course.