Trading Statement

Bodycote International PLC 20 November 2002 Date: Embargoed until 07.00am, 20 November 2002 Bodycote International plc TRADING UPDATE AND ACQUISITIONS At the time of the interim results we announced that sales had begun to stabilise albeit at a lower level than 2001 and that it was unlikely that there would be an upward movement in demand in the near term. In August and September sales were worse than expected. Sales for the final quarter of the year are likely to be similar to last year's levels. Accordingly the Board now anticipates that the outcome for the year will be around the bottom end of market expectations. Our Materials Testing Group has been the best performing of our Strategic Business Units ('SBUs') with sales ahead of the 2001 levels, largely due to solid North American automotive and European oil & gas business. The trading environment for our other SBUs remains challenging in all geographic areas and most end markets. We remain confident that the rationalisation measures announced earlier in the year will put us in a strong position to benefit from any improvements in our markets. These measures have now largely been implemented although the benefits are currently being offset by weakness in sales. Further rationalisation measures to improve return on invested capital may be required should there be no improvement in sales. We are also pleased to announce two modest but important acquisitions in the industrial heartland of Italy for a total cost of £8m for £11m of sales - the materials testing business, Centro Triveneto Ricerche Srl (CTR) based in Padua, will extend the reach of Bodycote Material Testing Milan and the Gamma heat treatment group which operates from three sites in the Brescia area complements our highly successful Gorgonzola plant. Enquiries to: David Landless, Group Finance Director Bodycote International PLC Tel: 01625 505 300 Jon Simmons / Meg Baker Tel: 020 7831 3113 Financial Dynamics This information is provided by RNS The company news service from the London Stock Exchange

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Bodycote (BOY)
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