News on 3 November 2000

Services and engineering company AMEC is to raise around £29 million through a placing of 10,400,000 new ordinary shares of 50p each representing 5% of the issued share capital.

Amec says the funds will enhance its ability to invest further in developing its services activities. Earlier this week the company announced the purchase of Ogden Environmental and Energy Services in the US for a total of US$17.5 million (£12 million). Amec also plans continued investment in Public Private Partnership schemes, well beyond the £55m committed at 30 June 2000.

AMEC expects to raise its shareholding in French associate SPIE from 41.6% to almost 50% through the planned rights issue at a cost of between £22 and £28m. SPIE plans further growth in European service activities by acquisition.

Peter Mason, Chief Executive of AMEC said: "This placing will provide a useful fillip to the financial resources of AMEC at a time of significant expansion in our service activities. We are delighted to support SPIE’s continuing success. The acquisition of Ogden Environmental is a further step in developing our North American services business and, additionally, PPP continues to generate attractive opportunities for AMEC."

www.amec.com