AGM Statement

14th June, 2002

                           CHAIRMAN'S AGM STATEMENT                            

We stated in our preliminary statement in March that we continue to view the
immediate future with caution.

The unprecedented weakness seen across Morgan's markets toward the end of last
year continued into the first quarter. As anticipated, this produced a very
weak start to the year. However, the second quarter is showing signs of
improvement in some areas. The major cost reduction programme announced in
February, is well under way and is progressing to plan.

We maintain our cautious stance on the timing of any significant or sustained
market recovery. Some macro-economic forecasts indicate the beginning of an
improvement later in the year and Morgan is well positioned to benefit when
such an upturn occurs. Our businesses enjoy strong positions in the markets in
which they operate and we remain confident in the ability of Morgan to return
to profitable organic growth when global markets recover.

Enquiries:

Ian Norris/Nigel Young, Morgan Crucible

Tel: [phone]

Harry Chatali/Locksley Ryan, Brunswick

Tel: [phone]