INVENSYS ANNOUNCES IT HAS SIGNED AN AGREEMENT TO SELL ITS LAMBDA BUSINESSES TO TDK CORPORATION OF JAPAN

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INVENSYS ANNOUNCES IT HAS SIGNED AN AGREEMENT TO SELL ITS LAMBDA BUSINESSES TO TDK CORPORATION OF JAPAN
19 July 2005 - Invensys plc

Invensys plc announces that it has signed an agreement to sell its Lambda businesses to TDK Corporation of Japan for a gross cash consideration of £134(1) million. Lambda comprises a 58.2% interest in Densei-Lambda KK, which is listed on the Tokyo Stock Exchange, and wholly-owned operations in Europe and North America.

Lambda is a leading manufacturer of power supplies and uninterruptible power supply systems, which are an important element in the supply, regulation and distribution of electrical power in electronic equipment.

In the year ended 31 March 2005, Lambda had sales of £229 million and operating profit of £11 million, before deduction of £8 million of operating exceptional charges. The gross assets of Lambda (including goodwill) subject to the disposal were £265 million at 31 March 2005 and the net assets (including goodwill) were £175 million. Invensys plc's consolidated accounts contained a minority interest charge of £2 million and balance sheet minority interests of £65 million in respect of Densei-Lambda KK.

The transaction is subject to customary regulatory approvals and is expected to be completed on or before 30 September 2005. The proceeds from this disposal will be applied towards satisfying the Group's liabilities.

Ulf Henriksson, Chief Executive Designate of Invensys plc, commented:

"This disposal is a further step in the Group's previously stated plans for the divestiture of non-core businesses. I am delighted that TDK has acquired Lambda and I am confident that the business will prosper and grow under its ownership."

Invensys was advised by Nomura International and Morgan Stanley.

In advance of the Group's Annual General Meeting on Thursday 21 July 2005, Invensys plc has today issued the following update on trading:

"The Group's overall profit performance during the first quarter of the current financial year was in line with expectations and ahead of the corresponding period last year.

Process Systems achieved an increase in profitability as the benefits of its performance improvement programme continue to come through. Eurotherm was in line with last year. APV improved from the disappointing result in the first quarter of last year but there are still further operational efficiencies to be achieved. As expected, Rail Systems had a weaker quarter mainly due to the deferment of orders by Network Rail in prior periods; we continue to expect an upturn in orders later in the year. Also as expected, Controls had a weaker first quarter than last year because of the effects of the manufacturing problems in North America and the changing competitive environment in the white goods sector.

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About: Invensys plc
Invensys is a global automation, controls and process solutions Group. We empower you to increase productivity, reduce waste, remove cost from your supply chain, boost profitability and demonstrate measurable improvement in your company's overall performance.
As a global leader in resource productivity, Invensys offers products and services, expertise, and technologies that enable you to maximize return on investments, conserve resources and optimize performance across your value chain.

Operating in more than 60 countries worldwide, Invensys meets the needs of the process and batch industries - from oil & gas, powerand utilities, chemicals, and rail systems to food & beverage, healthcare, and data communications - as well as the discrete and hybrid manufacturing sectors, and provides components, systems and services to the heating management, commercial refrigeration, residential safety and automotive industries, and electronic and electro-mechanical systems and components to appliance and related industries.

Not only do we help improve your bottom line, by enabling you to manage your assets more efficiently, but we also help you to protect the environment. As the result of our efforts, we have been awarded the prestigious Energy Star Label by the United States Environmental Protection Agency (EPA).

Taking an integrated strategic approach to increasing your productivity, we enable you to increase output from your existing plants and technology investments, provide you with solutions that create more efficiencies in your supply chain, and increase performance at every level.

From the production line to executive offices, from customer relationship and procurement management to distribution logistics, we can help you improve productivity, optimize performance, and increase profitability.

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