Potential Acquisition

James Latham plc

("James Latham", the "Company")

Potential acquisition

James Latham announces that it is reviewing a potential acquisition of DLH UK Limited, a wholly owned subsidiary of Dalhoff Larsen & Horneman A/S. DLH UK Limited is a supplier of hardwood to the UK market, and James Latham has been their largest customer.

The acquisition is expected to be at net asset value, less certain provisions. There will be no goodwill. DLH UK Limited has gross assets of approximately £6 million.

The Company is currently undertaking due diligence which is anticipated to lead to completion by 28 February 2011.

The Company will provide further details to the market once due diligence has been completed and the transaction is signed.

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