Termination of Lease

RNS Number:7195Q
Inveresk PLC
09 October 2003


                                  INVERESK PLC

               TERMINATION OF INVERKEITHING LEASE WITH KLIPPAN AB

Following the announcement in late August 2003 that Klippan AB of Sweden
intends, later this year, to close its paper manufacturing operations at
Caldwells Mill in Inverkeithing, Scotland, Inveresk PLC has agreed to accept,
from Klippan, a surrender of the residual period of the lease under which
Klippan operated the Caldwells Mill. Accordingly, all the plant, equipment, land
and buildings at Caldwells will revert to Inveresk in the near future.

Considerable international interest has already been expressed, by a number of
third parties, in acquiring the plant and equipment from the Mill.

The Board of Inveresk PLC also announces that constructive discussions have
taken place with Fife Council and Scottish Enterprise Fife regarding the future
development of Inveresk's 18 acre site at Inverkeithing, including the
opportunity for alternative uses.

The lease rental income received by Inveresk in 2003 amounted to #100,000 and
although this was due to increase by #100,000 per year until 2007, the Board of
Inveresk regards the loss of this potential income as being far outweighed by
the development opportunity and the ability to convert significant tangible
fixed assets into cash resources for the benefit of the business and Inveresk's
shareholders.

Enquiries:

Inveresk Plc 0207 240 1234
Jan Bernander (Chairman)
Alan Walker (Chief executive)




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