Trading Statement

600 Group PLC
24 March 2006

                                                                   24 March 2006



                               THE 600 GROUP PLC

                        NEW CONTRACTS AND TRADING UPDATE


The 600 Group PLC is pleased to announce that it has been awarded a major
contract by Airbus UK for the supply of four Mitsui Seiki machining centres and
a Fastems materials handling system.  The value of the contract is approximately
£4.4m.  Delivery is anticipated in the second half of the next financial year
when the majority of the profit for the contract will also be recorded.



In addition, The 600 Group PLC has been awarded a contract by the World Bank for
the supply of machine tools to Sudan.  Originally anticipated for delivery this
financial year, the value of this contract is approximately £1m and will now be
delivered predominantly during the first half of the next financial year.



We are continuing to make progress on the supply of lathes from China and have
seen significant improvements in quality.  Volumes are gradually improving but
are not yet at the level required to fulfil our order book for this product
range.



Our Electrox laser marking business has made impressive progress and nearly 50%
of sales within the last two months have come from products launched within the
last six months.  However, certain major contracts, which we had anticipated
would be finalised during this financial year, will not now be completed until
the first half of next year.



As a result of these supply constraints and contract delays, we now anticipate
that the overall underlying Group profit, including the effect of the pension
interest, will be close to break-even for the current financial year ending 31
March 2006.  The balance sheet remains healthy and net cash at the year-end will
be at least as high as at the half-year at approximately £4m.



A strategic review currently being undertaken has identified the need to write
down certain items at the year-end relating principally to goodwill and
inventory.  The value of these exceptional write-downs will be approximately £2m
and predominantly non-cash.



We are encouraged by the level of our overall order intake and in particular by
the award of these new contracts and remain optimistic about the outlook for the
Group.



The Group will be publishing its preliminary results on 22 June 2006.



Enquiries:

The 600 Group PLC
Andrew Dick, Group Chief Executive
John Fussey, Group Finance Director                 Telephone:     [phone]

Hudson Sandler
Nick Lyon                                           Telephone:     [phone]






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