Trading Statement

API Group PLC
11 October 2004

11 October 2004



                                 API GROUP PLC
                            YEAR END TRADING UPDATE

               2004 RESULTS LIKELY TO EXCEED MARKET EXPECTATIONS


API indicated in its interim results announcement for the six months ended 31
March 2004 that trading conditions remained tough and that the Group faced
several operational challenges. After reporting an operating loss before
goodwill amortisation and exceptional items for the first half of the year of
£0.6m, the Group predicted a return to operating profitability for the second
half. At that time it was unclear whether there would be a return to
profitability for the year as a whole.


Since the interim announcement, good progress has been made in many areas. There
has been strong growth in both sales and operating profitability in the Foils
and Laminates division, with the Laminates, US Foils and Security Foils
businesses performing well. Although still loss-making, the performance of the
Metallised Paper division has also improved and the Converted Products
businesses have continued to perform in line with expectations.


As a result of the above, the Group is likely to exceed current market
expectations for the year ended 30 September 2004 and now expects to report an
operating profit before goodwill amortisation and exceptional items which will
show some improvement over the equivalent profit of £0.6m reported in the
previous year. Net debt will also be reduced from the position at the half year.


We believe the improvement in performance validates our decision to refocus the
Group as a manufacturer of reflective surfaced packaging materials and we remain
committed to this strategy and as a result realising value for our shareholders.
Good progress has been made in addressing underperforming businesses and
discussions are underway with a number of interested parties in connection with
the divestment of the non-core Converted Products division.


The Group will make its preliminary results announcement for the year ended 30
September 2004 on Tuesday, 23 November 2004.



David Hudd                                            David Walton
Non-Executive Chairman                                Chief Executive


Enquiries:


API Group PLC                                        [phone]
David Walton, Chief Executive
Financial Dynamics                                   [phone]
Tim Spratt/Michelle Morton


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