LNX Lennox Hldgs

    Lennox Holdings PLC ("Lennox" or "the Company")                

                   New banking facilities and trading update                   

The Company is pleased to announce that it has secured new banking facilities
with Bank Popular which has branches throughout mainland Spain. As part of the
facility available, Bank Popular will initially advance up to Euro500,000 in
respect of certain debtors. Lennox currently has a debtor book in excess of Euro2.0m
and it is proposed that a wider invoice discounting facility will be
available over time.

These funds will allow the Company to meet customer demand for goods over the
important Spring season. As announced in January, the Board has carried out a
full review of trading operations and will continue to concentrate on a smaller
number, but higher margin product lines. Management are focused on removing
inefficient costs from the business whilst looking at opportunities to expand
the customer and revenue base.

Actions taken since the year end include closing the Barcelona depot, whilst
retaining the sales function, and reducing headcount by approximately 20%. This
will yield annualised cost savings in excess of Euro600,000 and will have no
discernable impact on the Company's ability to service its customer base.
Management continues to address areas such as credit control and customer
returns and will continue to pursue these as the business becomes more
efficient.

The Company will be announcing its results to 31 December 2006 in late May and
will update shareholders further at that time.

Nigel Terry, Chairman, commented:

"The change to Bank Popular is important to Lennox as they will provide great
support as we rebuild this business. Winter is typically a quiet period for the
Company and we have used this time to review all business operations. I believe
we are now making inroads - I anticipate 2007 as being a year of recovery and
hope to be able to report further progress later in the year"

19 March 2007

Enquiries:

Nicholas Nelson              020 7451 7068

Nexus Financial Limited



END

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