MELROSE INDUSTRIES PLC

TRADING STATEMENT

This statement covers the trading period from 1 January 2015 to 13 May 2015 (the "Period").

Melrose has traded in line with expectations in the Period with Elster performing very well and, as expected, Brush experiencing slow end market Generator demand.

Elster Gas has had a record performance in the Period with sales, operating profit and order intake improving over the same period last year, which is very encouraging. Elster Gas is not affected by the recent drop in the oil price as it has very little exposure to the upstream oil & gas industry. Eclipse, the acquisition made by Elster Gas in October last year, is performing as expected and the integration is ahead of schedule.

Elster Electricity has had a good start to the year and although it is the seasonally slower period for the business it is trading better than last year on all measures. Elster Water is trading well and is on track to have another strong year of profit delivery.

At present, trading in Brush is broadly consistent with the expected outturn for the year and, as expected, trading and order intake are weighted towards the second half of the year. As previously indicated, Brush is currently experiencing the strong cyclical slowdown in demand for new Turbogenerators, partly caused by the adverse oil & gas market, which is likely to continue into 2016.

Overall, trading in the Period allows your Board to be confident about the performance of Melrose this year. In addition, your Board continues to be keen on finding the next acquisition.

-ends-

Enquiries:

Montfort Communications:

Hannah Glynn                                                                                 +44 (0) 7711 080 806