AGM Statement

Bodycote International PLC
23 May 2007

23 MAY 2007

                                    BODYCOTE

                       ANNUAL GENERAL MEETING STATEMENT



Speaking at the AGM today, James Wallace, Chairman, reviewed the Group's
performance during 2006 and the first four months of 2007 and made the following
comments:


The solid performance of the Group reported in the first quarter trading
statement issued on 23rd April 2007 has continued.  Sales growth for the first
four months of the year was 16.0%, although at constant exchange rates the
increase was 22.2%, of which 7.3% is organic and 14.9% was from acquisitions.
We are pleased with the rate of organic growth in each of the business units
with Testing and Hot Isostatic Pressing (HIP) running at over 10% and Heat
Treatment at 5.9%.  Aerospace, Power Generation and Oil & Gas demand remains
robust in all territories and automotive sales have maintained their stronger
performance in Continental Europe, although North America automotive continues
to be soft.  The impact of currency movements, particularly the weakness of the
US dollar, has reduced sales in sterling terms in the first four months of the
year by 6.2%.  If exchange rates remain at their current level, the year on year
effect will moderate as the year progresses, with the annual impact on sales and
profits expected to be c. 3%.


Group margins are one percentage point ahead of the same period last year,
driven by gains in Heat Treatment, as we see the benefits of sales growth and
recent facility restructuring in the US and UK.  Margins in Testing and HIP have
been maintained. Energy costs continue to be well managed and recovered.  The
improvement in profitability has been translated into continuous improvement of
ROCE, with the largest increase coming in Heat Treatment.  Testing and HIP
continue to meet the Group's ROCE expectations.


As previously stated the Group plans to spend approximately £60m on acquisitions
in 2007.  To date the Group has acquired Techmeta S.A, an electron beam welder
in France with sales of approximately £6m, the PVD activities of IonBond in
Brazil and Argentina and the heat treatment business of IonBond in India with
combined annualised sales of £2m.  Agreement has also been reached to acquire
Ningbo Jiangdong Ruidahong Heat Treatment Co. Ltd, which operates from two
facilities in the Yangtze River Delta and has sales of c. £2m per annum.  In
addition we have registered a new Testing business in Bahrain, which will become
operational during the second half of 2007.


As shareholders will be aware, Bodycote was the subject of takeover speculation
and a series of approaches from Sulzer AG of Switzerland. The last indicative
proposal that we received was clearly stated to be final and was predicated,
amongst other conditions, on the Directors recommending any potential offer to
shareholders. The Board with its advisers considered the longer term prospects
for the business and, having taken into account the views expressed by all major
shareholders, determined that this proposal significantly undervalued the
business and consequently the Board could not make a recommendation to
shareholders.  The Board is committed to the success of the business and
maximising shareholder value.


A presentation on our growth strategy will be given by the CEO John Hubbard at
the end of the meeting and copies of his slides will be on the company website
www.Bodycote.com . This strategy is supported by a five year forward looking
business plan, which is reviewed annually.


We look forward to the remainder of the year with confidence and firmly believe
that we can achieve superior investment returns for our shareholders over the
medium term.  We thank shareholders for their support in recent weeks and our
dedicated staff for their continued contribution to Bodycote's success.


The Interim Results will be announced on Tuesday 31 July 2007.


For further information, please contact

Bodycote International PLC                            Tel  [phone]
John D. Hubbard, Chief Executive
David Landless, Finance Director

Financial Dynamics                                    Tel: [phone]
Jon Simmons
James Ottignon










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