Trading Statement

API Group PLC
24 March 2004


24 March 2004

                                 API GROUP PLC
                               Trading Statement

Since the trading update given at the Annual General Meeting in January, the
Group has continued to experience difficult trading conditions and the results
for both the first half and for the full year are likely to be below current
market expectations.

There has been an encouraging recovery in sales in the Foils and Laminates
division which had been adversely affected by the war in Iraq and SARS during
2003. However, margins in that division have remained under pressure and
profitability has now also been impacted by the adverse movement in the US
dollar exchange rate. As a result of these factors, first half operating profits
for the division are likely to be similar to those of the previous year.

Good progress has been made with the restructuring of the Converted Products
division. The loss-making Learoyd Packaging and Morris Plastics businesses have
both been sold realising proceeds of £2.2 million and there has been some
improvement in the performance of both API Coated Products and API Tenza.

As previously indicated, trading conditions have been difficult and margins have
been under pressure in the Metallised Paper division. In recent months, there
has been a marked deterioration in the performance of the division. Production
related issues, weak demand for label paper and adverse movements in exchange
rates have contributed to what is now expected to be an increase in first half
losses to approximately £1.6 million (2003 - £0.2m loss).

Trading conditions in certain of the Group's markets continue to be challenging.
However, the restructuring initiatives referred to in the 2003 Annual Report are
substantially complete and savings are being progressively realised. Action has
been taken in the underperforming businesses and we expect the Group to return
to profitability in the seasonally stronger second half.

The Board is committed to its strategy of repositioning the Group as a provider
of reflective-surfaced packaging materials for premium branded goods.



Enquiries:

API Group PLC
Derek Ashley                    Chief Executive                  020 7653 3300
David Walton                    Finance Director

Financial Dynamics
Tim Spratt/Michelle Morton                                       020 7831 3113




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