Melrose, which is listed on the London Stock Exchange, seeks to acquire businesses it understands, improve them by a mixture of investment and changed management focus and, in a three to five year time frame, realise the value created and return it to shareholders in the most efficient way possible.

Melrose is not a passive investor and its senior executives work closely with divisional managers to support the development of its subsidiaries. This encompasses both long term strategic planning and regular input on a range of commercial issues.

Acquisition & disposal rationale

The Board of Melrose seeks to acquire industrial businesses that it can improve. The businesses need to have strong fundamentals, for instance a leading market share and high quality products, which allow it to generate sustainable cash flows and profit growth. They will be underperforming in some way, not reaching their potential and have a problem which Melrose can fix.

Once the value creation has been optimised under Melrose ownership and the businesses can benefit from new owners, Melrose seeks to dispose of the businesses and return the value created to shareholders.

About Melrose PLC

For further information on the
Group’s strategy and history visit:

> Track record
> History timeline

Investor Information

For the latest information on Melrose’s financial performance visit investors.

> Latest Results Announcements
> 2008 Annual Report
> Financial Calendar
> Share Price

“In our Group we have a collection of companies with strong business franchises which operate in markets with good fundamental long term demand prospects. With some of these businesses being early cycle, and seeing signs of an upturn, and some being later cycle, as a Group our overall performance is protected to a degree from such cyclical volatility. Having responded early and aggressively to the downturn in trading by reducing costs and generating cash, our businesses are extremely well positioned to benefit when the recovery arrives.”

28 August 2009

D Roper