Disposal

Caledonia Investments plc

Sale of stake in Bowers & Wilkins

Caledonia Investments plc ("Caledonia") announces that it has sold its 20% stake in B&W Group Limited ("Bowers & Wilkins"), the designer, manufacturer and distributor of high-end audio equipment, for the sterling equivalent of £24m in cash, together with payment of an accrued dividend of £0.5m, as part of the wider sale of Bowers & Wilkins to EVA Automation Inc. ("EVA"), a US-based technology company.

Caledonia originally invested in Bowers & Wilkins in December 2011 and its exit at this time follows the majority owner's strategic decision to partner with EVA to leverage the Bowers & Wilkins brand through the broader market reach and technology platforms that EVA can offer. The investment has returned to Caledonia a money multiple of 1.2x and an IRR of 3.6%.

3 May 2016

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Notes for editors:

Caledonia Investments plc

Caledonia is a self-managed investment trust company listed on the London Stock Exchange with net assets of approximately £1.6bn as at 31 March 2016. The company maintains a concentrated portfolio of international quoted, unquoted and fund investments and has paid an increasing annual dividend for 49 years.

In the unquoted arena, Caledonia seeks to invest £25m to £100m in private companies, either on a majority or minority basis, providing a meaningful presence and growth capital supporting double-digit operating margins. Its current unquoted portfolio includes Park Holidays (a UK caravan parks operator), Cobehold (a European unquoted investment house), The Sloane Club (a London residential club), Choice Care Group (a UK learning disability care homes provider), Seven Investment Management (a provider of discretionary fund management, retail investment funds and platform services to UK investors) and Gala Bingo (the UK market leading retail bingo operator).

For additional information on Caledonia, please visit www.caledonia.com.

Bowers & Wilkins

Bowers & Wilkins, founded in 1966 by John Bowers, is a leading manufacturer and distributor of premium audio equipment throughout the world. It manufactures a wide range of products including the iconic Zeppelin docking station and the premium 800 diamond speakers used at Abbey Road studios.

Further information on Bowers & Wilkins and its products can be found at www.bowers-wilkins.co.uk.

Neither the contents of Caledonia's nor Bowers & Wilkins' websites, nor the contents of any website accessible from hyperlinks on these websites (or any other website) is incorporated into, or forms part of, this announcement.