Press Information

23 February 2006

Preliminary results for the year ended 31 December 2005

Highlights

• Group sales 7 per cent ahead of 2004, excluding portfolio changes.
• Operating profit before exceptional items 20.3 million, 77 per cent up on 2004.
• Earnings per share before exceptional items 2.8p (2004: 1.3p)
• Final distribution to shareholders 1.1p (2004: 1.1p). 2.2p for the year (2004: 2.2p)
• Operating loss from continuing operations after exceptional items 25.4 million (2004: profit 5.2 million).
• Loss per share 8.8p (2004: earnings of 0.8p)

Edward Bramson, Executive Chairman of Elementis plc, said:

'We are pleased to report the solid strategic progress that has been made during 2005. Our focus continues to be on improving the group's long term earnings quality and consistency to generate funds for growth and for distribution to shareholders.

The first phase of our strategic review, which was announced in October 2005, is on track. Our second phase, which will be announced near the end of the first quarter this year, will primarily address our Specialties division.

Turning to the underlying financial performance during 2005, the increase in operating profits was driven by positive pricing in all of our businesses, particularly Chromium. Softness in the coatings sector constrained volumes in Specialties and Pigments but early indications for 2006 suggest that the sector is improving. The Board recommends a final dividend of 1.1 pence per share, taking total distributions for the year to 2.2 pence.'

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