RNS Announcement Morgan Advanced Materials Plc

Board change

Following a review of group operations Regional Presidents will now report directly to Pete Raby, Chief Executive Officer. As a consequence the role of Chief Operating Officer will no longer be required.

Dr. Andrew Hosty, who has been Chief Operating Officer since February 2013, will continue to report directly to the Chief Executive Officer to provide advice on a review of business and future technology strategy. He will step down from the Board and leave the Company on 8^th January 2016.

Andrew Hosty joined Morgan in 1991. He was promoted to General Manager in less than a year after joining the Company. He joined the Group Executive Committee in 2002. Latterly, he was Chief Executive of the Morgan Ceramics Division, and was appointed to the main Board in July 2010.

Andrew Shilston, Chairman said:

"On behalf of the Board, I would like to thank Andrew for his considerable contribution to the Company over more than 24 years of service, during which he has played a key role in transforming the results and prospects of the businesses he has led, and has helped to give Morgan strategic options for the future. He has also represented Morgan in the wider Ceramics professional and academic community, in which his technical and commercial insights are well respected."

Andrew Hosty, Chief Operating Officer, said:

"It has been a privilege to work at Morgan and to help build a truly differentiated and profitable Materials Science business. I wish the group continued success."

The following information is provided in accordance with Listing Rule 9.6.11 and Companies Act

Section 430(2B).

As announced today Dr. Andrew Hosty will be stepping down as a director of Morgan Advanced Materials Plc on 8th January 2016.

Payment in lieu of notice

The following payments will be made to Dr. Hosty:

•      Dr. Hosty will remain an employee and director of the Company until 8th January 2016 and will continue to receive his contractual pay and benefits for that period.

•      The Company will make three payments each of £104,468.02 gross to Dr. Hosty, in lieu of notice for the remainder of his contractual notice period, made up of base salary, the cash equivalent of pension contributions and other benefits. The first of these payments will be made on his termination date and the last will be made no later than September 2016.

•      If Dr. Hosty obtains an alternative remunerated position prior to 1 October 2016 the Company will be entitled to make a corresponding reduction to the above payments.

•      The Company will also pay outplacement fees up to £20,000 plus VAT.

Retained share awards

Morgan Advanced Materials Bonus Deferral Share Matching Plan: Dr. Hosty's 7,474 deferred shares will vest following termination of his employment. These deferred shares were awarded as a result of performance under incentive schemes in prior years. Dr. Hosty may also be entitled to a matching award under the rules of the plan of up to 22,422 shares which may vest on the normal vesting date subject to the achievement of performance criteria over the full performance period. Dr. Hosty will also receive additional shares of equivalent value to the dividends that have accrued over the vesting period on his deferred shares and on any matching shares that vest subject to performance.

Morgan Advanced Materials Long-Term Incentive Plan: In line with the leaver provisions set out in the Remuneration Policy, Dr. Hosty will retain an interest over 205,955 shares under the LTIP. This interest reflects Dr. Hosty's outstanding LTIP awards at the date of termination of his employment, pro-rated for time, and which will vest on their normal vesting dates subject to the achievement of applicable performance criteria over the full performance period.

Morgan Advanced Materials Sharesave Scheme - Dr. Hosty holds options over 3,634 shares and he will have six months to exercise options to the extent of his savings under the scheme from the date of leaving.

All payments are in line with the Company's Remuneration Policy (which was approved by shareholders at the 2014 AGM). No further payments are to be made to Dr. Hosty in connection with his loss of office or the cessation of his employment.

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