Zeneca to Explore Divestment of Its Specialties Business.

WILMINGTON, Del.--(BUSINESS WIRE)--Nov. 12, 1998--Zeneca today announced its intention to consider the possible divestment of Zeneca Specialties.

The announcement is being made to enable Zeneca to explore divestment opportunities with potential buyers which would offer the Specialties business additional growth opportunities in the rapidly restructuring specialty chemicals sector.

Zeneca Specialties comprises a range of high quality businesses which includes Biocides, Industrial Colours, LifeScience Molecules, Performance & Intermediate Chemicals, Resins and Stahl leather products. The business operates across 35 sites worldwide and employs approximately 5,500 people.

The Marlow Foods business is not included as part of the potential divestment.

It is anticipated that if a divestment was undertaken, Zeneca's Huddersfield Works (excluding dedicated Specialties' plants) and the agrochemical plants at Grangemouth in Scotland, and their employees, would remain with Zeneca. Subject to these provisos, the potential divestment would include all of Zeneca Specialties' worldwide operations and in the event of a sale it is Zeneca's intention that all relevant employees would transfer to the new owner.

Jeremy Scudamore, Chief Executive Officer of Zeneca Specialties, said: "Since Zeneca's formation in 1993, a series of investments and divestments have delivered significant improvements in Zeneca Specialties' performance and prospects. Zeneca is making this announcement now so that we can explore further growth opportunities for the business, as a whole, with other companies in the rapidly consolidating specialty chemicals sector."

He added: "Zeneca has a good track record of consultation with its staff and Unions and I am determined that we should maintain this position as we explore the long term opportunities for Zeneca Specialties."

Sir David Barnes, Chief Executive of Zeneca Group PLC, said: "With the current consolidation of the specialty chemicals sector, we have been considering whether the successful divestment of Zeneca Specialties could offer the best long-term future for the business, its employees, customers and shareholders. Such a divestment would enhance further the Group's focus on Zeneca Pharmaceuticals and Zeneca Agrochemicals."

Further announcements will be made at an appropriate time as discussions progress.

In the US, Zeneca Inc. is a $3.4 billion bioscience business with approximately 7,500 employees. Zeneca Inc. is a wholly-owned subsidiary of the UK-based Zeneca Group PLC (NYSE:ZEN), a major $8.6 billion international bioscience business engaged in the research, development, manufacture and marketing of ethical (prescription) pharmaceuticals, agricultural and specialty chemical products, and the supply of healthcare services.

Further inquiries to: UK: Lucy Williams, Zeneca Corporate Office, tel: [phone] UK: Andrew Smalley, Zeneca Specialties, tel: [phone] or 0161 721 1050/1056/1060 US: Rachel Bloom, Zeneca Inc., Wilmington, Del., tel: [phone]

Notes to Editors:

Zeneca Specialties' sales in 1997 (including Marlow Foods) were 885 m pounds ($1.469 bn).

Zeneca Specialties sales in US in 1997 were $442 m.

Zeneca Group PLC sales in 1997 were 5.2 bn pounds ($8.6 bn) and Group operating profit (before exceptional items) was 1.083 bn pounds ($1.798 bn).

Marlow Foods manufactures and markets 'Quorn' - the UK's leading meat alternative food.