Trading Statement

API Group PLC
23 September 2005


23 September 2005

                                 API GROUP PLC

                                 TRADING UPDATE


API Group plc is making the following trading announcement in the light of
recent events and the recent performance of its European foils and laminates
business.


On 21 September 2005, API received notification from PriceWaterhouseCoopers that
they had been appointed as administrators of Boxstar Limited, one of the Group's
major customers in the United Kingdom. Following initial inquiries made with the
administrators, it is now clear that there is considerable uncertainty
surrounding the recoverability of amounts due from Boxstar Limited.


API indicated in its interim results announcement in June that the Group had
been experiencing challenging trading conditions in certain of its markets, but
was optimistic of some recovery in the second half. Since the interim results
were announced, our US foils and European security products businesses have
experienced increased demand and have performed strongly. However, demand for
premium-packaging products in Europe has continued to be relatively sluggish
throughout the summer affecting both the European foils and laminates
businesses. The performance of our Chinese foils business continues to be
affected by the restructuring of the Chinese tobacco industry.


As a result of the above, and in particular due to the uncertainty surrounding
the recoverability of amounts due from Boxstar Limited, the Group's operating
profit for the year ending 30 September 2005, although showing a good
improvement over the previous year, is now anticipated to be in the region of
£1.8 million.


The Board considers that there will be improvement in the short to medium term
in the European foils and laminates businesses, through a combination of
improving market conditions, recently launched new products and action taken to
improve effectiveness and efficiency. The Board is also confident that the
recent improvement in profitability in the US and security foils businesses will
be sustained and there is already some evidence of improvement in the Chinese
foils market. We are therefore confident of further improvement in the Group's
results in 2006.



                                      ENDS


For further information, contact:


David Walton, Chief Executive, API Group plc             020 7653 3300

Tim Spratt/Caroline Wells, Financial Dynamics            020 7831 3113







                      This information is provided by RNS
            The company news service from the London Stock Exchange