MTI Mtl Instruments

RNS Number:9932V
MTL Instruments Group PLC
20 December 2005


The MTL Instruments Group PLC ("MTL Instruments" or the "Company")

The board of MTL Instruments announces that on 19 December 2005 the Company and
its wholly owned subsidiary Measurement Technology Limited (together, "MTL")
entered into a put and call option agreement (the "Agreement") with Domaine
Developments Limited ("Domaine Developments") in respect of certain freehold and
leasehold properties in Luton, Bedfordshire (together the " Properties").
Domaine Developments is a subsidiary of Ballymore Properties Limited, and its
obligations under the Agreement are guaranteed by Ballymore Properties Limited,
a substantial private property developer. The put and call options can be
exercised at any time during the period from 1 April 2008 to 31 October 2008.

Under the terms of the Agreement:

(a) MTL has granted a call option entitling Domaine Developments to require MTL
    to sell the Properties to Domaine Developments for a cash consideration of 
    #12.5 million. The consideration for the grant of this option is #1.25 
    million which has now been received in cash; and

(b) Domaine Developments has granted a put option entitling MTL to require
    Domaine Developments to acquire the Properties for a cash consideration 
    of #12.5 million. The consideration for the grant of this option is #1.

In the event that either MTL or Domaine Developments exercises their respective
options, the consideration of #1.25 million paid by Domaine Developments for the
grant of its call option will be applied to reduce the purchase consideration
from #12.5 million to #11.25 million. In all other circumstances, the #1.25
million will be forfeited by Domaine Developments and retained by MTL.

The book value of the Properties is #3.7 million and they are currently used by
MTL as the headquarters of the Group and also accommodate activities including
manufacturing, design, marketing and administration. The Group is in the process
of looking for alternative premises in the Luton area to move to in 2008 if the
option is exercised.

It is expected that the #1.25 million consideration will be accounted for as a
deposit in the 2005 accounts and will therefore not be included as income in the
current year and will have no effect on profitability or earnings per share.

In the event that either MTL or Domaine Developments exercises their option in
2008, such that the Properties are sold to Domaine Developments, the Directors
would expect to report a gain on disposal in the accounts of the Company
covering that period. The Directors currently anticipate that the Group would
obtain a significant benefit by retaining the sale proceeds within the business
to provide additional working capital, to meet the costs of relocation and any
taxation liabilities, and to finance the continuing expansion of the Company's
activities.

Further information:
Bill Greenhalgh
Group Finance Director
The MTL Instruments Group PLC
Tel: 01582 407534




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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