MTI Mtl Instruments

RNS Number:7593W
MTL Instruments Group PLC
17 May 2007

17 May 2007

                         The MTL Instruments Group plc
                     acquires Elpro International for #12m

The MTL Instruments Group plc ("MTL") announces the acquisition of all the
shares in Elpro International Pty Ltd ("Elpro"), an Australian based developer
and supplier of wireless solutions, from the Queenland Development Fund and
Directors of Elpro. The total consideration of AUD$28.5m (#12.0m) will be paid
from new banking facilities. The consideration includes repayment of bank and
shareholder loans of AUD$1.5m (#0.6m) and AUD$1.1m (#0.5m) respectively.

Elpro is a leading global provider of secure and reliable wireless solutions for
applications in the process control, manufacturing and utility markets. The
Company designs, develops and manufactures a range of wireless interconnect
products that receive and transmit plant data in industrial environments. Elpro
is recognised as a leader in the industrial wireless market for its innovative
and proprietary technologies, high-performance products and value-added
technical support. The industrial wireless market has been characterised as a
specialised niche market until recently, with independent research houses
predicting high growth as wireless technology matures in the process control and
automation sectors.

Elpro is an excellent complementary fit with MTL, which is a world leader in the
development and supply of electronic instrumentation and protection equipment
for the process control and telecommunications industries. The majority of MTL's
equipment is used in hazardous environments such as the petrochemical, chemicals
and oil and gas production industries.

Following the transaction, it is expected that the Elpro business will be able
to extend its international customer base by leveraging MTL's existing sales
channels and OEM relationships. It will also improve Elpro's purchasing power.
Bringing Elpro into MTL will complement MTL's Open Control Components portfolio
and add wireless capability to MTL's product range as end-users seek to add more
measurement points on their plants without incurring the expense of extra
wiring.

In the year to 30 June 2006, Elpro achieved a pre-tax profit of AUD$1.2m (#0.5m)
on sales of AUD$8.2m (#3.4m). The gross assets of Elpro as at 30 June 2006
amounted to AUD$8.6m (#3.6m). The Directors believe that the acquisition will be
earnings enhancing in the first year of ownership (note).

MTL will be buying three entities - Elpro International Pty Ltd, the holding
company, Elpro Technologies Pty Ltd, the Australian based operating company and
Elpro Technologies LLC (USA) the US based operating entity. The existing
management team have strongly supported the acquisition by MTL and have been
retained by the company.

Graeme Philp, MTL's Chief Executive, commented; "We are delighted to have been
able to acquire Elpro. Wireless Technology is forming an increasingly important
part of the signal and data communication layer on modern process plants. MTL is
already a leading supplier of components for this communication layer and now,
with the addition of Elpro, we can provide interconnect solutions using all
major technologies, including traditional analogue, Foundation Fieldbus(R),
Industrial Ethernet, Optical and Wireless. This acquisition positions MTL well
for continued growth and success in this important area."

Note: The statement regarding earnings enhancement does not constitute a profit
forecast nor should it be taken to mean that the earnings per share of MTL in
the year ending 31 December 2007 will necessarily match or exceed the historical
earnings per share of MTL.


For Further Information:

Graeme Philp, Chief Executive                                01582 407250
Bill Greenhalgh, Finance Director                            01582 407227
The MTL Instruments Group plc          

Terry Garrett/ Stephanie Badjonat/ Hannah Marwood            020 7067 0700
Weber Shandwick Financial 



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

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