RNS Number:9687N
Metalrax Group PLC
14 February 2008

                                                                14 February 2008

                        Metalrax Group PLC ("Metalrax")

  Disposal of the Bacol Fine Blanking business (the "Fine Blanking business")

Metalrax, the niche supplier of specialist engineering and consumer durable
products, today announces that it has disposed of the net assets of its Fine
Blanking business, excluding its property, debtors and creditors, for a cash
consideration of approximately �0.5 million, to Rical Limited. The Fine Blanking
business, which is based in Bromsgrove, has approximately 140 employees and is
engaged in the production of fine blanked components and assemblies mainly for
the automotive industry.

In the year ended 31 December 2007, the Fine Blanking business, based on
unaudited numbers, incurred a loss before exceptional items and tax of
approximately �0.1 million and a loss after exceptional items but before tax of
approximately �2.1 million, on turnover of approximately �9.5 million. Gross
assets of the business, excluding its property, debtors and creditors, at that
date amounted to approximately �2.2 million (before year-end impairment).

The proceeds of the disposal will be used to reduce Metalrax's indebtedness.


Andrew Richardson, Chief Executive of Metalrax, commented:

"The disposal of the Fine Blanking business represents an important step in the
reorganisation of our existing operations. By eliminating the losses from this
business and raising cash proceeds from the exit, we have significantly
strengthened Metalrax's financial outlook.

"We are delighted to have concluded the sale of this business, which should be
beneficial to its employees, customers and suppliers."


For further information, please contact:

Metalrax Group PLC
Andrew Richardson, Chief Executive                      0121 433 3444

Arden Partners
Chris Fielding                                          020 7398 1600
Steve Douglas                                           0121 423 8900

Smithfield
Reg Hoare/Will Swan/Will Henderson                      020 7360 4900




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

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