My Fair Lady: Eliza Do-a-lot? Positive AGM RNS

Tinsley (Eliza) Group PLC
09 September 2004



Thursday, 9 September 2004
Immediate Release

Annual General Meeting

At today's Annual General Meeting (9 September), Chairman Michael Borlenghi told
shareholders:

'I am pleased to report that, on the back of improving market conditions
overall, Eliza Tinsley Group is experiencing a recovery across all of its
businesses.

'In July, we announced the acquisition of the MH Berlyn Group based in Cradley
Heath. Berlyn employs around 70 people and manufactures and sells a range of
consumer products and garden accessories which are sold, principally under the
well known Parasene brand name, into the UK garden centres and DIY multiples.

'Although we did not complete the acquisition of Berlyn until 6 August 2004, it
is encouraging that the indications are that sales in July and August were in
excess of 20% up on 2003. Berlyn's range of products is complementary to those
of our Consumer Products Division which has also traded well over the
April-August period. We believe that together, the Consumer Products Division
and Berlyn will be able to benefit from their leading positions within the
garden and DIY sectors respectively. With the synergistic benefits already
outlined to shareholders in the recent Placing and Open Offer document, this
strong partnership between the two businesses should provide revenue growth over
the coming year.

'As widely reported, over the last five months, there has been an upward
pressure on global steel prices. However, I am pleased to report that the Group
has been able to pass on these increases to its customers both in the UK, North
America and Europe. At the same time, we have successfully re-negotiated certain
supply contracts which will provide more realistic returns whilst also
eliminating some low margin/non-profitable business where improving the return
would be unlikely in the short to medium-term.

'Within the European Off-Highway Division we are witnessing an on-going
recovery, with customers' build-schedules currently still running ahead of our
expectations. Demand from our US customers continues to generate sales volumes
at our North American operation at unprecedented levels.

'Our low cost sourcing programmes initiated last year are beginning to come on
stream, with supply lines already up and running well in Poland, Mexico and
India. These programmes will achieve significant cost savings whilst also
putting us in a more competitive position with the European Off highway market.

'The shortage of skilled labour in the UK together with seasonal peaks of demand
have led to an increase in the Group's labour costs. To bridge this skills
shortage and meet ongoing volume demand, we have recruited and trained some 35
skilled welders who have joined our UK workforce from our Polish supply lines.
This creative approach to tackling the challenges of UK skill shortages has been
very successful and will ensure that we meet our future
production schedules for our customers. We believe skill shortages in the UK
will be an ongoing issue for manufacturing in general.


continued...

-2-

'The sale of our Cradley Heath site currently occupied by the Consumer Products
Division is progressing well. Planning permission on the site for change of use
to residential was received in July, much earlier than anticipated. Since then,
I am pleased to inform shareholders that the vendor due diligence, including the
environmental and related land reports, has been completed and full marketing of
the 3 acre site has now commenced. We believe that the Group will achieve
substantially above book value for the site.

'Also we have already identified a number of suitable sites that meet our
criteria and lease cost budgets set for the relocation of the Consumer Products
Division to create a modern distribution facility for this business. We expect
to make a further announcement on this before the end of 2004.

'In August, we announced that the Group would move from the Official List to the
Alternative Investment Market ('AIM'). Trading in the Group's ordinary shares on
AIM commenced on 7 September 2004. It is our belief that the decision to move to
AIM is in the best interests of the Group and its shareholders as it provides a
more flexible and cost efficient environment in which to achieve the Company's
strategic objectives. It will certainly allow a more cost-effective disposal of
the Cradley Heath site.

'Finally, we are very encouraged by the progress and opportunities that exist
for the Group. We look forward to updating shareholders at the time of the
interim results which will be announced in December 2004 and reiterate the
strategic comment made in the recent Placing and Open Offer document that the
Board is conscious of the need to pay a sustainable level of dividend out of
generated profits.'

Enquiries:

Andrew Hall Chief Executive
Paul Hill, Group Finance Director Fiona Tooley
Eliza Tinsley Group PLC Citigate Dewe Rogerson
Telephone: 01384 263 123 Telephone: 0121 455 8370
Mobile: 07831 255 511 Mobile: 07785 703 523

www.etgplc.co.uk

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Henderson took up their rights (see company RNS's) and directors have accumulated.

Looks good to me!

z