News Release

3rd November 2006

AUTOMATION AT ARMITAGE SHANKS SECURES FUTURE

A multimillion pound investment programme at the Armitage Shanks factory near Lichfield has secured its future. "An innovative deal between unions and management has secured jobs at the factory and made the Armitage plant competitive with its Asian rivals" says Michael Fabricant who visited the plant today (Friday 3rd November) to tour their new state of the art Tank Cell. This facility, which is a world first in the Group, will eventually produce up to 600,000 pieces each year. Using the latest robotic automation it demonstrates Ideal Standard's continued commitment to Manufacturing Sanitaryware in the UK. However more importantly it will also allow the company to compete with low cost Asian imports.

"State of the art robotics combined with recycling and excellent worker relations has strengthened the medium term future of the factory. However, the competition is tough. I shall now be taking up issues like gas and electricity prices which are far higher in the UK than other parts of the EU with Energy Ministers as these are driving up the costs of manufacturing throughout the West Midlands. I shall also be exploring the possibility of obtaining match funding from the EU and elsewhere for a programme to generate clean, solar energy for part of the Armitage plant", Michael adds.

Brian Standbridge, Ceramic Operations Director and Alex Philips, the Armitage plant manager, toured the site with Michael Fabricant who was delighted with the continued investment and development of the Armitage site.

Brian Standbridge says "This $5 million investment further improves the competitiveness of the site and secures it's productivity position as No.1 globally within our Group". Alex Philips added "This latest investment reflects the continued excellent performance of the site and all it's employees".