Trading Statement

Tate & Lyle PLC
                  

Tate & Lyle PLC - 28 September 2007

TRADING UPDATE

In line with its regular practice, Tate & Lyle issues the following trading
update prior to entering a closed period in respect of the interim results to 30
September 2007. The interim results will be announced on Wednesday, 31 October
2007. A copy of the proforma results for the six months to 30 September 2006 in
the revised segmental reporting format is attached for reference.

FIRST HALF OUTTURN

First half results from SPLENDA(R) Sucralose and continuing* operations in our
US and European Ingredients businesses are expected to be similar to those in
the prior year on a constant currency basis. However, our sugars business has
experienced a substantial reduction in the performance of sugar trading, which,
after a particularly difficult August, is now forecasting a small loss for the
first half against a profit of £15 million in the comparable period. As advised
in our statement at the Annual General Meeting on 18 July 2007, the translation
impact of weakness of the US Dollar is expected to reduce pre-tax profits for
the first half. We estimate this impact to be approximately £12 million over the
comparable period.

DIVISIONAL PERFORMANCE

In Ingredients, Americas sales and profits of value added starches have improved
as expected. This progress has been offset to some extent by a weaker HFCS
market. As previously indicated, ethanol profits have been well below last
year's exceptional levels. Operating losses and closure costs of Astaxanthin
(which was announced on 16 August 2007 and will be reported in continuing
operations) are expected to total £5 million in the first half year.

Total operations in Ingredients, Europe have performed ahead of the prior year
with continuing operations in line with the prior year. The well publicised
increase in European wheat costs further supports our decision to dispose of our
interest in the facilities in the UK, Belgium, France, Spain and Italy to Syral
SAS (a subsidiary of French cooperative group Tereos). We expect this
transaction to close in the next few days and the businesses concerned will be
treated as discontinued operations in the interim results. Once this disposal
completes, we will have no exposure to wheat. We are pleased with the operating
performance of the German specialty food ingredients group G. C. Hahn & Co,
which joined the Group on 15 June 2007.

Profits for SPLENDA(R) Sucralose have been similar to the prior year on a
constant currency basis. Sales have grown, with customer de-stocking thus far
having less of an effect than anticipated, though we believe that surplus
inventories continue to be held by some of our customers. The start-up of the
Singapore plant is proceeding well.

Profits from continuing operations in the Sugars division have been sharply
lower than in the comparative period principally due to a forecast small loss in
sugar trading for the first half compared to a profit of £15 million in the
prior year. Molasses trading has made a good start to the year and we expect
sugar trading to be profitable in the second half. The European refining
businesses have performed in line with our expectations and are making good
progress in improving efficiency and competitiveness.

EU SUGAR REGIME

We welcome the announcement by the Commission on 26 September regarding
agreement on a package of measures to repair and strengthen the reform of the EU
sugar regime. The changes are designed to make the restructuring fund more
attractive to both beet growers and processors given that it has performed below
expectations in the first two years of its four year term. The result of the
agreement is expected to be an increase in the surrender of quota starting with
the next deadline for surrender on 31 January 2008. The Commission is aiming for
a further 3.8 million tonnes of quota to be surrendered under these improved
conditions in order to bring the EU sugar market back into the supply and demand
balance envisaged in the original November 2005 agreement on sugar reform.
Whilst these changes will have little direct benefit to our sugar refineries,
which are not part of the restructuring fund, we believe that in the long term a
balanced and stable market is good for the whole industry.

TAXATION

Although the overall tax rate for the Group as a whole is forecast at
approximately 30% for the year to 31 March 2008, the restructuring following the
disposal of businesses in Western Europe (together with their associated tax
losses) is expected to result in a proforma effective tax rate for continuing
business in the current year of approximately 34%. Implementation of revised
financing arrangements, which remain dependent upon regulatory approval, is
progressing satisfactorily and we continue to expect a substantial reduction in
the effective tax charge for the next financial year, albeit from this higher
base.

OTHER ITEMS

In line with previous guidance, interest costs are higher than the prior year.
The share buyback programme has commenced with 8.8 million shares having been
bought by close of business on 27 September at a total cash consideration of
£48.5 million.

Exceptional items are expected to include a £55 million profit on the disposal
of Redpath in Canada and an estimated loss on disposal of facilities of
Ingredients, Europe of £20 million.

OUTLOOK

Three particular factors influence the outlook for our continuing businesses

Firstly, while our continuing Ingredients, Europe businesses have performed
satisfactorily in the first half, as our cover on raw materials expires the
significantly higher corn (maize) costs in Europe will, if sustained, have an
increasingly severe effect on the profitability of this division. Sales prices
will be increased where possible in order to offset these higher costs but we
think it prudent at this stage to assume only modest profits from these
businesses in the second half year.

Secondly, the ongoing dispute between the USA and the EU over genetically
modified corn has resulted in US corn gluten feed exports to the EU being
prohibited. This has caused oversupply in the USA and has depressed by-product
prices and margins. It is not clear when this dispute will be resolved.

Thirdly, the translation impact of weakness of the US Dollar will, if sustained,
reduce pre-tax results in the second half of the year, although to a lesser
extent than that forecast for the first half.

Given the importance of these factors, the Board views the near term outlook
with caution. However, our trading experience during this transitional year
reinforces the importance of, and our confidence in, Tate & Lyle's strategy of
building a stronger value added business whilst reducing our exposure to
volatile markets and regulated regimes.

CONFERENCE CALL

A conference call for analysts and investors will be held at 8.30 am today. The
call will be hosted by John Nicholas, Group Finance Director and Mark Robinson,
Director of Investor Relations. Participants are requested to dial in at least 5
minutes before the commencement of the call. Dial in details are:

-0-
*T
Participant dial in number:                     [phone]
Replay telephone number:                        [phone]
Replay passcode:                                2469821#
*T

The replay of this call will be available for 7 days until 4 October 2007.

CONTACTS

Mark Robinson, Director of Investor Relations
Tel: [phone] or Mobile: [phone]

Ferne Hudson, Head of Media and Public Relations
Tel: [phone]

*continuing operations relates to the Group as a whole less results relating to
Redpath, Eastern Sugar and those facilities of Food & Industrial Ingredients,
Europe which are being sold as announced on 18 July 2007 and referred to above.

About Tate & Lyle

Tate & Lyle is a world leading manufacturer of renewable food and industrial
ingredients. It uses innovative technology to transform corn, wheat and sugar
into value-added ingredients for customers in the food, beverage,
pharmaceutical, cosmetic, paper, packaging and building industries. The Company
is a leader in cereal sweeteners and starches, sugar refining, value added food
and industrial ingredients, and citric acid. Tate & Lyle is the world number-one
in industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose.

Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 60 production facilities in 23 countries, throughout Europe,
the Americas and South East Asia. In the year to 31 March 2007, it employed
6,900 people in its subsidiaries with a further 2,300 employed in joint
ventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additional
information can be found on http://www.tateandlyle.com.

SPLENDA(R) is a trademark of McNeil Nutritionals, LLC

-0-
*T
PROFORMA REVISED SEGMENTAL INFORMATION



External sales - Six months to 30 September 2006

                         As previously Reallocation of    Discontinued       Restated
                              reported          Sugars
                                    £m              £m              £m             £m

Food & Industrial
 Ingredients, Americas             615              -               -            615
Food & Industrial
 Ingredients, Europe               413              -            (256)           157
Sucralose                           73              -               -             73
Sugars, Americas & Asia            151           (151)              -              -
Sugars, Europe                     787           (787)              -              -
Sugars Total                         -            938            (138)           800
Central                              -              -               -              -
                         ------------- --------------- --------------- --------------
Total                            2,039              -            (394)         1,645
Discontinued                         -              -             394            394
                         ------------- --------------- --------------- --------------
Total                            2,039              -               -          2,039
                         ------------- --------------- --------------- --------------



Operating profit * - Six months to 30 September 2006

                         As previously Reallocation of         Central   Discontinued       Restated
                              reported          Sugars
                                    £m              £m              £m             £m             £m

Food & Industrial
 Ingredients, Americas              87              -               6              -             93
Food & Industrial
 Ingredients, Europe                40              -               2            (19)            23
Sucralose                           33              -               1              -             34
Sugars, Americas & Asia              7             (7)              -              -              0
Sugars, Europe                      26            (26)              -              -              0
Sugars Total                         -             33               7             (6)            34
Central                              -              -             (16)             -            (16)
                         ------------- --------------- --------------- -------------- --------------
Total                              193              -               -            (25)           168
Discontinued                         -              -               -             25             25
                         ------------- --------------- --------------- -------------- --------------
Total                              193              -               -              -            193
                         ------------- --------------- --------------- -------------- --------------


* Operating profit is stated before exceptional items and amortisation of acquired intangible assets
*T