INS Instem Plc

RNS Number:6334I
Infast Group PLC
15 February 2005


                        EXIT FROM MANUFACTURING COMPLETED

Infast Group plc ("Infast" or the "Company") announces that today it completed a
major part of its strategic programme, announced in July 2004, with the sale of
the assets and business of Infast Philidas Limited ("Philidas" or the
"business").

The withdrawal from all manufacturing operations has been achieved:

   * At a financial impact less than expected in July 2004.

     The exceptional charge excluding goodwill realisation is expected to be 
     around #7 million (pre-tax relief) compared to the #8 million announced 
     in July 2004.

   * Earlier than previously expected.

   * Primarily by sale rather than closure.

   * Without impacting the availability of product to Infast's core services
     divisions.

Graham Titcombe, Chairman of Infast said: "Having exited from manufacturing,
Infast is now positioned to focus fully on its value added Inventory Management
businesses, which are located in Europe and North America.

"Further, the property disposals relating to our exit from manufacturing are
currently underway. The sale of these properties will generate significant
additional cash flow in 2005. This will be used to reduce the Company's debt."

                              Disposal of Philidas

Philidas, which is located at Pontefract in West Yorkshire, is a producer of
metal fasteners.

In the year ended 31 December 2004, the business had turnover of #7.9 million
and made a trading loss of #0.8 million.

Under the terms of the sale, the purchaser will acquire the net trading assets
of the business for an initial cash consideration of #0.4 million, plus deferred
consideration, estimated to be #0.3 million, payable as product is supplied to
Infast. Debt due to Philidas for goods recently supplied will not pass to the
purchaser. This is estimated to be a further #0.9 million, representing an
additional cash flow benefit to Infast. The book value of the net assets of the
business being sold is approximately #2.9 million.

The purchaser has undertaken all employment and lease liabilities of Philidas.

For further information, please contact

Infast Group plc                                             Tel: 01452 880 500
Robert Sternick, Chief Executive
John Kimber, Finance Director

Rawlings Financial PR Limited                                Tel: 01756 770 376
John Rawlings
Catriona Valentine




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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