RNS Number:3623I
Chloride Group PLC
3 April 2000



                                       
                              CHLORIDE GROUP PLC
                 ACQUISITION OF MASTERGUARD FOR #20.3 MILLION
                     DISPOSAL OF CEN'S MAGNETICS BUSINESS

Chloride announces the acquisition at 31 March 2000 of Masterguard, the  power
protection  division  of  Siemens AG, for a net cash  consideration  of  #20.3
million  subject  to  adjustment on completion.   This  will  consolidate  the
Group's  pan European capability by giving it a market leadership position  in
Europe's largest power protection market, Germany, and in the growing  Turkish
market.

Masterguard's headquarters are situated at Erlangen, Germany where  its  sales
and  service, R&D and manufacturing facilities are based.  In Turkey it has  a
sales and service operation based in Istanbul.  In addition, Masterguard has a
well   established  network  of  international  partners,  which  are  largely
complementary to Chloride's own network.

Masterguard employs a total of 170 people.

The acquisition provides:

*    market leading positions in Germany and Turkey;

*    blue chip customers including Siemens;

*    high  quality  products  and a complementary international  distribution
     network;

*    the  opportunity  to market LIFE 2000, Chloride's world  leading  remote
     monitoring service, to Masterguard's installed product base;

*    a  strong  research and development capability which will reinforce  the
     Group's ability to quickly introduce innovative products; and

*    enhanced earnings.

The consideration for the acquisition is being satisfied in cash funded by the
Group's existing debt facilities.

For  the  year to 30 September 1999, Masterguard's businesses had turnover  of
#29.0  million and generated earnings before exceptional costs,  interest  and
tax  of  #1.5  million.    In the twelve months to Chloride's  financial  year
ending  31  March 2000, Chloride expects Masterguard's turnover  to  be  #30.1
million  and  earnings  before exceptional costs, interest  and  tax  of  #2.1
million.    As  part  of the process of establishing the Masterguard  business
separately  from Siemens, exceptional costs were incurred in the  year  to  31
March  2000  totalling  c. #1.0 million.  Masterguard had  net  assets  at  30
September 1999 of #3.6 million.

Commenting  on the acquisition Keith Hodgkinson, Chief Executive  said:
"This acquisition  is  a  major  step in our strategy  to  build  market 
leadership positions  across  the  world  in power protection  solutions.  
The  enlarged business  will  pursue its proven strategy of focusing on  the 
higher  growth sectors of telecoms, e-commerce and financial services."

Chloride also announces the sale of the loss-making specialty magnetics
business of CEN Electronics to Tabtronics Inc., a US manufacturer of custom
electromagnetic products.

Sales of the specialty magnetics business for the year ended 31 March 1999
were $3.2 million (#2 million).  The business has net assets of #0.6 million.

Keith Hodgkinson, Chief Executive said:

"We are pleased to announce the sale of CEN's magnetics business, which is
non-core  and  has been loss-making in recent years.  Plans to sell the 
remaining Power Conversion businesses are progressing.  Sale of the Division
will enable us  to  focus  on our core businesses, and drive forward our power
protection business  in  its key markets of telecommunications, e-commerce and
financial services."


Enquiries:

Chloride Group PLC
Keith Hodgkinson (Chief Executive)
Neil Warner (Finance Director)               Tel: 020 7834 5500

Hudson Sandler
Andrew Hayes                                 Tel: 020 7796 4133



END
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