Dexion Statement

As many of you will have read Dexion UK has gone into receivership. This is not an official announcement of the Dexion Group position, however, in view of the rumours, particularly those relating to Redirack we will point out the following:

A Receiver has been appointed to manage the administrative receivership process of Dexion International Ltd. (DIL) and Dexion Ltd.

A large number of employees have been made redundant and our sympathy goes out to them.

All the other manufacturing plants and offices of the Dexion Group are working normally and are not affected by this situation.

Redirack Limited is independent of Dexion International Ltd. and Dexion Ltd. and is not threatened by these events.

In fact, Redirack has had a very successful start to 2003, having met all its targets, both sales and profit. Redirack has a skilled and committed workforce and continues to produce high quality product very competitively. During the first two quarters of this year we have received a number of significant contracts from blue chip companies that continue to have complete confidence in Redirack as a long term partner and supplier.

Redirack will continue to operate within the UK as an independent company. It will continue to produce good profits and returns for its owners and there are no threats or plans that will cause this to change. Redirack is in good shape and will continue operating - as it has done for the last 30 years - very successfully!

A good article with more detail appeared in the June issue of SHD. It is partially reproduced below:

"Almost 100 staff have been made redundant at Dexion after the racking and shelving firm ran into financial difficulties and called in the receivers Ernst and Young. Reports claim that the company was loosing between £250,000 and £300,000 per month.

The job losses total 92 but a number of staff have been kept on in key roles although it was unclear how long they would remain. It is understood that a buyer for the company is being sort.

Redirack, the Rotherham based racking and shelving manufacturer that is owned by the same holding company as Dexion in unaffected and continues to trade normally."