Trading Statement

Bodycote International PLC
23 April 2007

23 April 2007


                           BODYCOTE INTERNATIONAL PLC

                                 TRADING UPDATE


Bodycote International plc, the specialist thermal processing and testing
services company, is pleased to report an excellent performance in the first
quarter of 2007.

HIGHLIGHTS

•  Revenues (at constant exchange rates) increased by 21.8%

•  Organic revenue growth (in local currency) in Testing SBU of 10.2%

•  Organic revenue growth (in local currency) in Thermal Processing SBU of 5.9%

•  Group Operating Margin up 1 percentage point

•  Expansion into emerging markets on track

•  Extensive bolt-on acquisition pipeline

GROUP

At the time of the preliminary results announcement, we reported that sales in
2006, for continuing operations at constant exchange rates, were 19% higher than
2005 at £558.6m and headline operating profit(1) was £79.7m compared to £67.8m 
in 2005, an increase of 18%.

Sales growth for the period to the end of March (at constant exchange rates) was
21.8%, of which 6.8% was organic and 15.0% was from acquisitions.  The operating
margin in the first quarter was better than in the same period of 2006 by 1
percentage point.  Acquisitions completed in 2006 added £48.3m in sales last
year and are expected to contribute approximately £100m in 2007.

The execution of the Group's strategy to significantly expand the Testing
business and widen the geographic coverage of Thermal Processing remains firmly
on track.  Testing now accounts for 26.5% of Group sales.

Cash generation remains strong as a result of continued tight control of capital
expenditure, and the ongoing focus on working capital management.

Energy costs continue to be well managed and recovered.  Natural gas prices have
abated, but electricity costs continue to rise in several regions and are not
expected to begin to fall until the latter part of the year.

A number of potential acquisitions are at various stages of evaluation and
negotiation, and, as set out in our preliminary results, we expect 2007
acquisition spend to be approximately £60m.

As a result of the impact of exchange rates (primarily the weakness of the US
dollar) on currency translation in the first quarter, sales in sterling terms
were higher by 15.5% compared with the prior year.  If exchange rates remain at
the current level, the impact will moderate as the year progresses, with the
annual impact on sales and operating profit expected to be c. 3%.

(1) excluding impairment of goodwill and equity investments, amortisation of
acquired intangibles, major facility closure costs and interest and tax on
associates.

STRATEGIC BUSINESS UNIT (SBU) OVERVIEW

Heat Treatment sales in local currency are cumulatively running 13.8% ahead of
last year, of which 5.4% is organic, and operating profit is up more than 20%.
Turnover has increased in all geographies except the USA, where growth has been
temporarily affected by the previously announced closure of two facilities.
Aerospace, Power Generation and Oil & Gas demand remains robust in all
territories, and automotive sales have strengthened in Continental Europe
although North America is flat.  Margins and ROCE continue to improve in all
markets as we see the benefit of recent facility restructuring and sales
increases.

Hot Isostatic Pressing is maintaining its excellent performance, with organic
sales growth of 9.9% (in local currency) compared to 2006 and margins
maintained, as a result of continued strong demand for aerospace, industrial gas
turbine and oil & gas components.

The Testing SBU has maintained its margins and strong ROCE performance, in line
with its target, whilst rapidly expanding the business.  Sales, at constant
exchange rates, cumulatively are 53.1% ahead of 2006.  Organic sales growth has
improved to 10.2%. The businesses acquired in 2006 are now fully integrated into
our network and management continues to focus on winning further outsourcing
opportunities.

OUTLOOK

The Board expects all markets in which the Group operates, except for
automotive, to remain buoyant.  Automotive has improved since the end of 2006 in
Europe and especially in France, but North America continues to be muted.  The
Board remains confident in the prospects for the Group and that it will continue
to make further progress in the remainder of the year.

The AGM will be held on 23 May 2007.

For further information, please contact:

Bodycote International plc                   Tel No: [phone]
John D. Hubbard, Chief Executive
David Landless, Group Finance Director
Financial Dynamics                           Tel No:  [phone]
Jon Simmons
James Ottignon



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