Disposal

RNS Number:5620M
RMC Group PLC
20 June 2003

Friday, 20 June 2003



Not for release, publication or distribution in or into Australia, Canada, Japan
or the United States of America.


RMC Group p.l.c. - SALE OF HALES FOR #141 MILLION

RMC Group p.l.c. ("RMC") announces the sale of the assets of its waste
management division, Hales Waste Control Limited and RMC Environmental Services
Limited (together "Hales"), to Biffa Waste Services Ltd ("Biffa"), a subsidiary
of Severn Trent Plc, for approximately #141 million on Thursday, 19 June 2003.

The DME Tyres business and certain properties, including the Frampton, Wickwar
and Farnham landfill sites, are excluded from this transaction and will be
disposed of separately by RMC.

RMC has received cash proceeds of #126 million.  Biffa has separately paid #15
million to ING Lease Fleet Finance Limited to purchase vehicles and equipment
used in the Hales business.

RMC will also receive additional cash payments from third parties for working
capital, totalling approximately #7 million, which will be collected by Biffa
over the course of the next six months, and will receive an annual royalty
payment from Biffa with a net present value totalling approximately #7 million
in relation to certain landfill sites.

For the year ended 31 December 2002, the disposed businesses of Hales had
turnover of #112 million and profit before tax of #9 million.  As at 31 December
2002, the net assets of the disposed businesses were #29 million.

The cash proceeds from this disposal will be principally used to reduce RMC
Group debt.

Stuart Walker, Group Chief Executive of RMC Group, said:

"The disposal of Hales is in line with RMC's strategy of concentrating on
concrete, aggregates and cement in its core markets of the UK, Continental
Europe and the USA.   It is an important step in rationalising our business
portfolio and has been achieved at an attractive price for our shareholders."



Enquiries:



RMC

Investor Relations             Gary Rawlinson       01932 583067
Media Relations                Tim Stokes           01932 583215

UBS Investment Bank
Philip Byrne                   020 7568 2695
Alison Harding-Jones           020 7568 2289


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UBS Limited ("UBS Investment Bank") is acting for RMC Group and no one else in
connection with the disposal and will not be responsible to any other person for
providing the protections afforded to clients of UBS Limited, or for providing
advice in relation to the disposal.


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