Spirax-Sarco Regulatory News (SPX)

 7th July 2010

Spirax Sarco acquires Watson-Marlow Pumps distribution business in Australia and New Zealand for up to £2.2 million

Spirax-Sarco Engineering plc announces that, through its subsidiary company Watson-Marlow Pty, it has acquired from its local distributor the business assets and goodwill relating to the exclusive sale of Watson-Marlow Pumps ("WMP") products in Australia and New Zealand.

The existing distribution agreement has given WMP a good share of the important mining market in Australia, which it now expects to grow further. The acquisition will also enable WMP to provide a stronger focus on the pharmaceutical and food and beverage markets in Australia and New Zealand. The staff responsible for the distribution of WMP products have transferred to Watson-Marlow Pty.

The purchase consideration is subject to the final value of inventory at completion and the maximum total consideration will be A$3.8 million (£2.2 million). This will be paid in instalments during the next 3 months from existing Group resources. We expect the transaction to make a small positive contribution to Group earnings in the second half of 2010.

About Spirax Sarco

Spirax-Sarco Engineering plc provides a broad range of fluid control and pumping products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Group helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations. Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,400 people, of whom 1,200 are direct sales and service engineers. Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX). Further information can be found at www.spiraxsarcoengineering.com.

Contact details:

Mark Vernon - Chief Executive

David Meredith - Director Finance

Spirax-Sarco Engineering plc

Charlton House

Cheltenham

Gloucestershire

GL53 8ER

Tel: 01242 535234

Fax: 01242 581470

www.SpiraxSarcoEngineering.com