Morgan Advanced Materials Regulatory News (MGAM)

Notification of interests of directors/persons discharging managerial responsibility (PDMRs) and connected persons

4 August 2015

This notification is made pursuant to DTR 3.1.4R(1)(a).

1. Awards under the Long-Term Incentive Plan 2004 (LTIP)

The Company announces that on 3 August 2015 awards over ordinary 25p shares in the Company were made to a Director and a PDMR listed below under the Company's LTIP.

The awards under the LTIP comprise three elements: (i) an HM Revenue & Customs approved option over shares to the value of £30,000 with an exercise price of 344.98 pence per share; (ii) an LTIP award in the form of a conditional award of free shares to the value of the remainder of the award; and (iii) a funding award, also in the form of a conditional award of free shares, over such number of shares whose value at exercise of the approved option equals the amount payable on exercise.

Subject to satisfaction of performance targets, awards under the LTIP may vest in three years' time.

In addition to satisfaction of the performance targets, the approved option may only vest in the event that the market value of a share at vesting is greater than 344.98 pence per share. The funding award is used to fund the exercise price of the approved option and is expected to be satisfied by shares from the Company's employee benefit trust.

2. Additional award over shares in the Company to Pete Raby

Also on 3 August 2015, an award over 114,351 ordinary 25p shares in the Company was made to Pete Raby. This award was granted in accordance with Listing Rule 9.4.2(2) and was made in recognition of the loss of incentive awards which he forfeited on leaving his former employer. The award will vest in two tranches, on the dates given below, subject to Pete Raby not having resigned or been dismissed in specified circumstances. There are no performance conditions attaching to this award.

Enquiries: Stephanie Mackie, Morgan Advanced Materials plc

Tel: 01753 837000