Acquisition

RNS Number:8858N
Metalrax Group PLC
23 July 2003


                        METALRAX GROUP PLC ("Metalrax")

        Acquisition of Welland Engineering Supplies Limited ("Welland")

Metalrax today announces that it has acquired the entire issued share capital of
Welland, a specialist stockist and distributor of fasteners, hand tools and
maintenance products, based in Peterborough, Cambridgeshire.

The initial consideration payable is #1,012,500 in cash plus or minus the amount
by which Welland's net assets at completion are greater or less than #350,000.

Further cash consideration is payable, subject to a maximum of #137,500,
depending upon the net profits of Welland for the financial years ending 31
December 2003 and 31 December 2004.

In the year ended 31 December 2002 Welland made a pre-tax profit before dividend
of #434,325 on a turnover of #2,287,077 and as at that date had net
shareholders' funds of #1,741,570.

The Managing Director of Welland, Eddie Cunningham, has entered into a new
service agreement with Welland for 3 years from completion.

The group view this acquisition as an investment in a new market which will
further expand and diversify group trading.

For further information contact:


Richard Arbuthnot
Chief Executive
Metalrax Group PLC
Tel: [phone]

23 July 2003


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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