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

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Group’s strategy and history visit:

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Investor Information

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“In the Energy division, Generators enjoyed a strong half year. With orders in place to cover the year’s forecast sales of generators and a large part of its aftermarket projected sales already booked, Generators should again end the year strongly.

The Lifting Division was boosted by Crosby’s excellent start to the year, with both sales and profit significantly higher than in the first half of 2010. On the back of growing order books across its markets, Crosby expects the second half of the year to see further progress.

On the back of healthy order intake in the first half of the year, Bridon also expects that its performance for the full year will exceed that of 2010.

In the Other Industrial division, MPC has had a very strong start to the year on the back of a substantial increase in sales and a nearly doubled profit over the corresponding period last year.

Truth continues to make progress on many fronts, and is extremely well positioned to benefit when its market starts to recover.”

24 August 2011

D Roper