Statement re MG Rover

Avon Rubber PLC 13 April 2005 13 April 2005 Avon Rubber p.l.c STATEMENT RE MG ROVER Following recent developments at MG Rover the Board of Avon Rubber p.l.c. has issued the following statement. Our business with and exposure to MG Rover reduced significantly as a result of their decision to source vibration management products in China from October 2004. In the event that production does not recommence, sales of hoses valued at £1.4 million to MG Rover from our continental European plants for the six months to our financial year end on 30 September 2005, will be lost. This represents around 1% of group sales and would have an impact of approximately £0.6 million on gross profit. Current receivables outstanding together with dedicated inventory and tooling relating to MG Rover amount to £0.9 million. Depending on developments at MG Rover, a provision for these items may be made as part of our first half year results which will be announced on 19 May 2005. Commenting on the statement, Steve Willcox, Chief Executive said: 'For the sake of all stakeholders in MG Rover, we hope that a positive way forward can be achieved. Our European Automotive activities are currently undergoing reorganisation in line with the details given at the Annual General Meeting in January 2005 and we would not expect any further reorganisation to be necessary as a consequence of the situtation facing MG Rover.' < ends > Contact Information: Avon Rubber p.l.c Steve Willcox, Chief Executive 01225 861100 Terry Stead, Finance Director (Local/Trade Press) 01225 861100 Jayne Hunt Weber Shandwick Square Mile Richard Hews / Rachel Taylor / Stephanie Badjonat 020 7067 0700 This information is provided by RNS The company news service from the London Stock Exchange
UK 100