Trading Statement

API Group PLC
28 July 2006


28 July 2006


                                 API GROUP PLC

                                 TRADING UPDATE


Since the release of the Group's Interim Statement, trading conditions have
continued to be mixed. While our global Foils business has performed
significantly ahead of our expectations, the performance of the UK-based
Laminates business has continued to be disappointing due to challenging market
conditions and weak underlying demand. Consequently, we now expect the result
for the year to be materially below current market expectations.

The Foils business is performing well and operating profits are now expected to
be considerably ahead of previous expectations. Our US and Chinese businesses
are growing sales strongly in their core domestic markets and exports from China
into new markets such as Russia and India are increasing rapidly. Both
businesses will report significant improvements in sales and profits over the
prior year. While the European Foils business continues to experience pressure
on sales and margins due to competition, demand for products launched earlier in
the year continues to grow and our efforts to expand the distribution
organisation in Continental Europe are yielding benefits. Our UK-based
Holographics business will show a healthy improvement over the previous year.

In contrast, the Laminates business continues to perform poorly. Weak demand in
recent months has resulted in further significant sales shortfalls and we now
expect the performance of the Laminates business to be considerably below
previous expectations and to represent a very substantial deterioration on the
previous year. We have responded by downsizing the workforce, strengthening the
senior management team and taking action to improve productivity. The impact of
these changes is likely to take some time to feed through into improved results.

The Board remains committed to its successful strategy of growing and expanding
the Group's Foils business and is pleased with the improved performance achieved
in this area. The Laminates business continues to be a market leader in its
sector and we are optimistic that the actions referred to above will result in
improved performance in the short to medium term.


Enquiries:

API Group plc                                      01625 858700

David Walton, Chief Executive


Financial Dynamics                                 020 7831 3113

Tim Spratt / Nicola Biles


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