Bateman Engineering N.V. (BATEMAN)

16 February 2006 (London)

Acquisition of remaining 60% stake in Atoll Metal Recovery Specialist

Bateman is pleased to announce that it has acquired the 60% of the Atoll group of companies ("Atoll") it did not already own. Atoll provides specialist metal recovery services to metallurgical processors and mining enterprises, predominantly in South Africa. The cash consideration is ZAR22.6m (US$3.7m) including the purchase of a ZAR5m (USD0.8m) receivable.

Atoll was incorporated in 1999 by Bateman and Mintek, a unit of the South African government formed to promote R&D and commercialisation of mining technologies, with each owning 40% and the remaining 20% allocated to its management incentive scheme.

Atoll's principal activity is the recovery of metal alloys, mostly FeMn, FeNiCr, FeCr, and SiMn from slag dumps and other waste streams. Whilst Atoll's work is predominantly for South African ferroalloy producers, Bateman's management intends to grow the business internationally. A substantial marketing programme is already underway with a number of opportunities being pursued in Eastern Europe and the USA.

All of Atoll's units will be consolidated under Bateman Toll Treatment BV, a direct subsidiary of Bateman Engineering N.V. and Atoll's management team will remain with the company. Atoll generated turnover of US$15.6m for the financial year ended 30 June 2005. Atoll's results for the current year will be fully consolidated into the Bateman accounts for its financial year ending 30 June 2006.

Dr Sivi Gounden, CEO of Bateman, commented:

"This is another positive and cost effective step in our drive to grow the business both organically and by means of good strategic acquisitions. Atoll is well run and will be immediately earnings enhancing for Bateman without requiring the commitment of significant management and financial resources. The acquisition also provides Bateman with a platform to expand in the lucrative and higher margin market of metal recovery, leveraging on our existing strong relationships in the mining sector".

NOTE FOR EDITORS:

Bateman Engineering is a technology-driven engineering-project house serving the minerals and metals industries worldwide. Bateman was admitted to the Alternative Investment Market (AIM) on the London Stock Exchange last October and is currently capitalised at more than £100 million.

The acquisition of Atoll is consistent with the company's acquisition policy of finding good businesses that provide a first class strategic fit and which have highly regarded incumbent management teams who are committed to staying in situ once the transaction has been completed. Details of the Atoll Business Model are set out overleaf. Bateman's acquisition policy can be accessed on the company website via:

www.BatemanEngineering.com/acquisitions.htm

Atoll's Business Model

Atoll has two principal commercial models:

• Toll treatment:
  The processing of slag dumps (or other waste streams) for a fixed fee per tonne. All recovered metal is handed over to the client. Projects are typically 5-7 years in duration and the principal risk is the cost of operations (processing cost per tonne).

• Processing for own account:
  Under this model a joint venture is established between the owner of the slag dump and Atoll, typically on a 50/50 basis. Atoll provides know-how, financing and operational expertise. The owner of the site contributes the dump. The JV purchases the plant from Atoll and third parties. Any metal recovered is sold by the joint-venture whose profits are then split between the partners. Projects are typically 5-7 years in duration and the principal risks are the market price of the metal and the cost of operations.

ENQUIRIES:

Bateman Engineering	Dr. Sivi Gounden, CEO Jonathan Ben-Cnaan, CFO	+27 11 899 2673 +41 79 756 6039
College Hill	Nicholas Potter (Analysts) Matthew Gregorowski (Media)	+44 20 7457 2037 +44 20 7457 2029