UMECO PLC 06 January 2006 6 January 2006 UMECO PLC PRESS RELEASE Compstock Electronics UMECO plc, a leading international provider of value-added services, components and composite materials primarily to the aerospace & defence industry, announces that its Components division subsidiary Compstock Electronics Limited ("Compstock") has sold its industrial products business to a new company, Flightspares Electonics Limited, formed by two of the directors of Compstock. The aerospace & defence activities of Compstock have been transferred to Pattonair Limited based in Woking which is one of the division's main European distribution centres. This reorganisation follows a period of poor trading in the UK electronics market and will enable UMECO Components to focus on this product range within its core aerospace markets. From 9 January 2006, the Compstock name will no longer be used and the product range will be traded under the Pattonair brand. The consideration for the business being disposed is £0.4 million in cash. UMECO will incur a loss on the disposal and the related reorganisation of approximately £1.1 million including a goodwill write off of £0.4 million and this will be accounted for as a significant item in the Group accounts for the year ending 31 March 2006. - Ends - For further information, please contact: UMECO plc Clive Snowdon, Chief Executive 01926 331800 Hogarth Partnership Ltd John Olsen / Barnaby Fry 020 7357 9477 Notes to editors UMECO plc is a leading international provider of value-added distribution services and composite materials primarily to the aerospace & defence, automotive, motorsport, and wind turbine industries. Listed on the London Stock Exchange, UMECO had turnover of £242.4 million in the year to 31 March 2005. UMECO is managed through three divisions:- UMECO Components - a leading international provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market. With its specialisation in the supply of small components and sophisticated IT systems, its growing global customer base can enjoy significant operational, cost and working capital benefits. Customers include Rolls-Royce plc, BAE SYSTEMS, Snecma Groupe, Parker Aerospace, Goodrich Aerospace, Bombardier, Lockheed Martin and the US Department of Defense. UMECO Composites - a provider of a complete range of advanced composite materials and specialist chemical products principally to the aerospace, motorsport, automotive and wind energy markets. A growing range of value-added outsourcing services is provided to major customers. Customers include Boeing, Airbus, BAE SYSTEMS, Goodrich Aerostructures, British Airways, Lufthansa Technik, a number of manufacturers of high performance super cars and all the Formula 1 teams. UMECO Repair and Overhaul - a provider of a comprehensive accessory repair and installation service to operators of fixed and rotary wing aircraft ranging in size from executive jets through to a Boeing 747. Customers include British Airways, KLM, Swiss, Alitalia Express, Bristow Helicopters, BAE SYSTEMS, Saab Aircraft and Pratt & Whitney. This information is provided by RNS The company news service from the London Stock Exchange