AGM Statement

Bodycote International PLC
25 May 2005


EMBARGOED UNTIL 1505 HRS:  Wednesday 25 May 2005


                 ANNUAL GENERAL MEETING STATEMENT - 25 MAY 2005


Speaking at the Annual General Meeting, James Wallace, Chairman, reviewed the
Group's performance during 2004 and made the following comments concerning
trading during the current year:

At the time of the preliminary results announcement on 1 March 2005, we were
pleased to report a significant uplift in the performance of the Group in 2004
after more than two years of difficult trading conditions.  This included a
major improvement in sales, operating profit and free cash flow generation.  In
addition we established the PVD strategic alliance with IonBond and all but
completed our exit from the electroplating business.  This progress reflected
the success of our 'self help' strategy and ensured that Bodycote was well
positioned to benefit from any pick up in end markets, win new outsourcing
contracts and undertake selected value enhancing bolt-on acquisitions.

I am now pleased to report that the current year continues to develop in line
with our expectations both in terms of sales growth and margin improvement.
Most of the Group's key market sectors including aerospace, heavy truck & bus,
power generation, oil & gas and health sciences have continued the growth trends
seen in 2004.  The car and light truck sector has shown some softness in certain
geographies but this has been more than offset by continuing new business wins,
notably in USA and Germany.

Sales (in constant currencies) in Heat Treatment are ahead by 7%, compared with
the first four months of last year, with improvements in all regions.  Of this
increase, 5% is organic and 2% from the previously announced acquisitions in
Denmark (July 2004) and Poland (February 2005).  The UK is experiencing steady
demand in automotive and modest increases in aerospace and along with additional
outsourcing has seen sales ahead by 11%.  The Nordic region is experiencing high
demand in heavy truck and marine diesel, whilst our Central European Group
continues to benefit from the growth in automotive diesel technology.  Aero
engine demand in France has picked up but there has been some softness in large
volume automotive components and tooling work continues a slow migration to low
cost countries.  In North America aerospace demand is increasing but more so in
our West Coast plants than in New England.  Demand for titanium heat treatment
is high, the oil & gas sector is ahead strongly and Industrial Gas Turbine
volumes remain robust.  Margins across the SBU continue their gradual
improvement.

Materials Testing has continued with its strong record of sales growth with
turnover (at constant exchange rates) up 14% year on year, of which 9% comes
from existing laboratories and 5% from three small acquisitions in Canada (May
2004) and the UK (December 2004 and January 2005).  Margins have been
maintained.

In line with our strategy to accelerate the growth of our Materials Testing
division, I am pleased to announce two further notable acquisitions.  On 28
April, 2005, Bodycote acquired the entire share capital of Law Laboratories
Limited, a leading UK food testing specialist.  Operating from purpose built
premises in Birmingham, Law Laboratories had annual revenues in 2004 of £6.5m
with 160 employees and provides analytical testing and consumer advisory
services to most of the major UK retail groups and their supply chains.  Further
acquisitions in this sub-sector are planned in the short term.

On 20 May 2005, an agreement was signed to acquire CSM Materialteknik A.B. from
SAAB A.B. (subject to clearance from the Swedish Competition Authority).  CSM is
Scandinavia's leading knowledge based company in the fields of applied materials
and process technologies and provides testing and consultancy services to the
aerospace, defence and power generation industries.  The business, which
operates from three laboratories in Sweden, is headquartered in Linkoping and
produced revenues of £8.3m in 2004 with a staff of 105.

Both acquisitions meet our target for return on capital and we anticipate
improving existing operating margins to the current Materials Testing SBU
average within two years.

We expect to continue the development of the Materials Testing via organic
growth, continued outsourcing gains and by completing further value enhancing
bolt-on acquisitions during the remainder of this year.

The Hot Isostatic Pressing business is again providing excellent results, with
power generation demand strong and a pick up in commercial aviation.  Sales (in
constant currencies) have increased by 12%.

Surface engineering has recorded similar levels of sales to 2004 but profits
have been temporarily impacted, as anticipated, by start-up costs in the
CoatAlloy(R) business.  We expect a solid performance in the second half.

The IonBond strategic alliance is performing in line with its targets.

As expected, energy prices are higher in 2005 than 2004 but good progress has
been made to recover these additional costs.  Cost control remains a key focus
and annual wage settlements are in the process of being mitigated through price
increases and productivity improvements.

We remain confident of meeting our expectations for the full year and are well
placed to respond to any change in market conditions.

Work continues to restate historic financial information to International
Financial Reporting Standards (IFRS).  A conference call with analysts will be
held on 23 June to present a comparison between current UK GAAP and IFRS in
respect of the year ended 31 December 2004.


For further information, please contact:
 John D. Hubbard, Chief Executive
 David Landless, Finance Director
 Bodycote International PLC                             Tel no: 01625 505300

 Jon Simmons
 Sally Lewis
 Financial Dynamics                                     Tel no: 020 7831 3113



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