28 March 2002

("the Group" or "the Company")

* before goodwill amortisation, additional stock provision and exceptional items

Roger Leverton, Chairman commented:

"2001 has been a year of consolidation and transformation for the Group into a focussed Inventory Management Services business, following the disposals of the remaining non-fastener operations and the acquisition of Fab-Com in the USA.

"Trading in the current financial year has commenced satisfactorily despite continuing depressed market conditions in both the UK and the USA. Sales and profits to date are ahead of the previous year and in line with management’s expectations. New business prospects remain encouraging as manufacturers in increasingly diversified industries look to Infast’s growing range of value added services to help improve their own efficiencies."

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For further information please contact:

Roger Leverton, Chairman

Robert Sternick, Chief Executive

Susan Ellis/ Stephanie Smart

Embargoed until 7.00am 28 March 2002

("the Group" or "the Company")

2001 has been a year of consolidation and transformation for the Group into a focussed Inventory Management Services business, following the disposals of the remaining non-fastener operations and the acquisition of Fab-Com in the USA.

In order to respond to the changed structure of the Company and its concentration on Inventory Management Services, the executive team has been strengthened during the year in addition to significant investments being made in new, more efficient facilities. Despite this progress, 2001 witnessed increasingly difficult market conditions due to the continued downturn in UK manufacturing and reduced US activity levels, which have slowed the growth of the Company and impacted profitability.

Whilst total Group turnover was down to £142.6m (2000: £169.0m) the reduction was totally attributable to the disposals of non Inventory Management Services operations. Turnover in our fastener activities was up by £10.2m to £134.1m with £6.0m of the increase being a first time contribution from Fab-Com with the balance being attributable to the addition of several significant new contracts which were won in difficult market conditions. Operating profit pre goodwill amortisation, additional stock provisions and exceptional items fell to £4.3m (2000 : £6.0m), with the fastener business recording a profit of £4.6m (2000 : £7.1m). The additional stock provisions represent a one-off charge of £1.0m to increase stock obsolescence provisions as a result of changes to our customer base and a review of stock write-down practices.

The reduced profitability in our fastener activities was the result of start up costs for the new contracts, continuing margin pressure in the market, and the costs associated with improving our facilities in the year.

In addition, lower demand in our UK bolt manufacturing plant, GKS Centrepiece, necessitated a substantial restructuring of its operations resulting in a reduction of its cost base by over 30%. The charge for this restructuring of £1.8m, is shown as an exceptional operating item.

Our commitment to disposing of non core businesses resulted in the sale, in September 2001, of MacLellan Integrated Services, Inc. and Brandt Filtration Group, Inc., our only remaining non Inventory Management Services business. In addition we disposed of the land remaining after the sale of Nim-Cor in 1999. These disposals generated £3.4m of cash and gave rise to a deficit on disposal of £1.0m, which together with a goodwill realisation of £0.1m relating to Brandt, resulted in an aggregate loss on disposals of £1.1m.

Interest costs fell to £0.8m (2000: £1.0m), whilst net debt at the end of the year was £17.2m (2000: £11.4m) the increase in debt in the year was mainly the result of the acquisition of Fab-Com for £7.6m. Net working capital increased by £1.6m due principally to new contracts and the higher exit rate of turnover compared to the beginning of the year. Overall net cash inflow from operating activities amounted to £3.1m (2000 : £4.5m).

In recognition of recent improvements in operating performance and prospects, the Board is recommending a final dividend of 1.2p (net) per share which brings the total payment for the year to 2.0p (2000: 2.0p).

Notwithstanding the disappointing financial performance, the Group has made significant progress in a number of areas during the year.

The extensive disposal programme of non Inventory Management Services business was completed leaving the Group free to focus on its core activities. Management of the remaining operation has been strengthened and business improvement initiatives established throughout the organisation.

Sales in the Industrial Division marginally increased, with the benefit of new business offsetting the reduction in volumes, due to the economic slowdown, from a number of existing customers. The largest of these new contracts was for the supply of industrial consumables to BAE Systems, which commenced in August 2001, and is steadily increasing its turnover rate, although it made little profit contribution during the start-up phase in 2001.

In September, the Industrial Division relocated its Gloucester Technical Distribution Centre into a purpose built, 6700m² facility. This move, which will enhance the operation’s capability and efficiency, has allowed the consolidation of four local facilities onto one site. It will also substantially improve our ability to manage our growing international supply chain and to expand our centralised value adding customer kitting service.

The Premier Automotive Division also started the year operating from new improved facilities, following the relocation of its Birmingham operation over Christmas 2000.

Similarly reflecting the general slow down in industrial markets, the premier automotive and agricultural sector suffered from a lower market demand within its existing customer base. However, total sales levels have increased over the course of the year due to the impact of the new contracts on Jaguar ‘X’ type and new Mini. These contracts commenced volume production in the third quarter 2001 and are performing in line with our expectations. These two major contracts plus the BAE Systems contract only provided part year benefits in 2001 and, at current run rates, are expected to add over £10m more turnover in 2002 than 2001 at full contribution.

The year also saw significant developments in our US operations following the acquisition of Fab-Com in January. Fab-Com, based in Atlanta, is providing critical mass to our US operations focussed on servicing the US–Southern industrial markets. As a result our Detroit facility has been closed and the operation integrated into Atlanta. Since the acquisition, Fab-Com has operated in a depressed market particularly after 11 September and also incurred significant restructuring costs. It has, however, won two sizeable new contracts with Case New Holland, an existing UK customer, which commenced in July 2001 and January 2002 respectively and the outlook for this business remains encouraging.

Manufacturing operations at GKS Centrepiece suffered from the slow down in demand, which contributed to its poor performance, and resulted in the operation being restructured. Philidas, our nut manufacturer, performed creditably, moving profits forward on only marginally increased turnover, due to its improved cost controls. Arnold Wragg, which remains non-core, also saw an improved performance on lower turnover, following the restructuring it undertook in 2000.

The Group has also invested a considerable amount of resources into the next generation of its IT systems so as to maintain the advanced technology which it has traditionally brought to the market place. The Group’s IT systems are critical to its ability to service its customers and I am pleased to be able to report that the implementation programme is going well.

As shareholders are aware, during the year the Board, in conjunction with the Company’s advisers, ING Barings, has been giving active consideration to realise shareholder value, which amongst other lines of investigation included the possibility of a management buy-out of the Company.

No offer has been forthcoming at a level which the Board and its advisers believed would represent realistic and reasonable value to shareholders, particularly at a time of improving prospects for the Company.

Your Board has therefore concluded that this is not the best time for the Company to be seeking to sell the business, and as a consequence has ceased to pursue this course of action.

During the year the Board has been strengthened by the appointment of Robert Sternick as Chief Executive and the retention of John Cresswell as an additional Non-Executive Director. Details of both appointments were provided in the half-year statement.

With the decision to terminate immediate disposal of the business and having virtually completed the restructuring and repositioning of its operations, I believe that it is now timely for the Company to seek a new Chairman to take the business forward to its next stage of development. I therefore intend to step down as Chairman and a Director of Company effective from the upcoming AGM. The Board, through its Nomination Committee, has commenced a search for a replacement and will keep shareholders informed of progress.

As reported on 7 February 2002, trading in the current financial year has commenced satisfactorily despite continuing depressed market conditions in both the UK and the USA. Sales and profits to date are ahead of the previous year and in line with management’s expectations. New business prospects remain encouraging as manufacturers in increasingly diversified industries look to Infast’s growing range of value added services to help improve their own efficiencies. The new contracts in the UK and USA are performing well and already contributing to enhanced results. I am also pleased to report the recent award of a further substantial new contract with Perkins Engines Company Ltd to supply value added services, fasteners and related parts to their Peterborough facility commencing in June 2002.

The full contribution of these new contracts, together with the elimination of over £1.0m of annualised costs by the restructuring programme undertaken in 2001, principally in our manufacturing operations, gives the Board confidence for the Group’s prospects in 2002.

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For further information please contact:

Roger Leverton, Chairman

Robert Sternick, Chief Executive

Susan Ellis/ Stephanie Smart

as at 31 December 2001

for the year ended 31 December 2001

Under FRS 1 (revised), cash is defined as cash in hand plus deposits less overdrafts, each of which are repayable on demand. Bank deposits which are not repayable on demand are treated as liquid resources, and not cash, in the cash flow statement but are netted off against bank overdrafts in the balance sheet where there is a right of set-off.

2. Non-operating exceptional items

These relate to the disposal of various businesses as follows:-

1. Taxation

The tax charge is made up as follows:

The adjusted basic earnings per share is presented so as to show more clearly the underlying performance of the Group.

The calculation of diluted loss per share of 1.6p (2000: loss of 6.4p) is based on the Group loss of £1.8m (2000: loss of £7.3m) and on the diluted weighted average number of 20p ordinary shares in issue during the year of 114.3m (2000: 114.3m). The diluted weighted average number of 20p ordinary shares in issue is the same as the basic weighted average.