Disposal of U.S. Business and Acquisition Update

Tuesday 21 November 2006

Sale of U.S. Business
SIG plc, the leading supplier of insulation, roofing and interior products, announces the disposal of its US business to Grey Mountain Partners. Proceeds from the sale amount to $51m in cash. This sum is slightly higher than net asset value, resulting in a small profit on disposal. David Williams, Chief Executive of SIG, commented, “Although the US business has performed extremely well over recent years, our rate of growth and expansion in the UK, Ireland and Mainland Europe has been such that the US today accounts for less than 4% of total Group sales. Given the future opportunities for SIG within the UK, Ireland and Mainland Europe, our strategy is to concentrate our resources towards these territories. On this basis, it makes sense for the US business to be allowed to develop outside the SIG Group”.

Acquisition Update
Within the 2006 Interim Results Announcement released on 12 September 2006, the company informed shareholders that it had completed 12 acquisitions up to that date in 2006 with combined annual sales of circa £115m. Since that date, a further 9 acquisitions have been completed. These are again broadly spread across the Group’s existing business streams and increase coverage in the UK, Ireland and Poland. This takes the combined total of acquisitions completed so far in 2006 to 21, with combined annual sales of circa £210m. Total consideration for these 21 transactions amounts to circa £88m including assumed debt.

Trading
Current trading is in line with expectations, and the Group is confident of meeting analysts’ consensus expectations for 2006. Enquiries: Gareth Davies, Finance Director, SIG plc 0114 285 6300 David Williams, Chief Executive, SIG plc 0114 285 6300 Faeth Birch, Gordon Simpson, Finsbury 020 7251 3801