Low & Bonar PLC - Capital Reorganisation and Payment of Interim Dividend

Low & Bonar PLC (the “Company”) today announces that the Court of Session in Scotland (the “Court”) has confirmed the cancellation of the Company’s share premium account, the cancellation of its paid up capital to the extent of 25 pence per issued ordinary share and the reduction in the nominal value of its ordinary shares from 50 pence to 25 pence (the “Capital Reorganisation”). The Capital Reorganisation has created a credit on the Company’s profit and loss account of £85,433,000 which will be partially applied in offsetting the loss arising on the disposal of the Company’s Plastics Division and in the recognition of the deficit of the Low & Bonar Group Retirement Benefit Scheme, the Company’s UK defined benefit scheme, on the balance sheet upon the adoption of accounting standard FRS 17 (Retirement Benefits).

Payment of Interim Dividend for the year ended 30 November 2005 and Payment of Dividend on the Company’s Preference Stock

The Company declares an interim dividend for the year ended 30 November 2005 of 1.7 pence per ordinary 25 pence share payable on 16 December 2005 to shareholders on the register on 2 December 2005.

The Company also announces that it will pay the dividend to holders of its 6% First Cumulative Preference Stock, 6% Second Cumulative Preference Stock and 5 ½% Third Cumulative Preference Stock that was due on 1 September 2005 on 16 December 2005 to shareholders on the register on 2 December 2005.

Share Certificates

Following the reduction in the nominal value of its ordinary shares from 50 pence to 25 pence, new share certificates for ordinary 25 pence shares will be issued to those ordinary shareholders who currently hold their ordinary shares in certificated form within the next 10 days. Shareholders can trade in Low & Bonar PLC ordinary 25 pence shares prior to receiving their new share certificates.