AGM Trading Statement

Churchill China PLC
17 May 2006

For Immediate Release                                                17 May 2006

                              CHURCHILL CHINA plc
                             AGM Trading Statement

At the Company's Annual General Meeting, Stephen Roper, Chairman, will make the
following statement:

'Group sales for the four months to the end of April 2006 were marginally ahead
of our expectations and as anticipated were below the levels recorded in the
corresponding period of 2005 as we continued to actively manage the mix of our
business towards more profitable distribution channels.

We have continued to make good progress against our target of improved profit
for the year and this has been enhanced by improved capital utilisation and cost
savings from a number of investment projects.

The principal reason for the fall in Group sales is the planned transfer of
lower price Retail business from a full service model through our UK operations
to shipment direct from source to both our UK and export markets. This revised
strategy is designed to improve both our competitive position and operating
performance and  has been well received by customers. Sales of Hospitality
products are marginally below anticipated levels, however good progress has been
made in our key markets, the UK, Spain and the USA. Overall sales are marginally
below 2005 with reduced sales to some lower margin export markets.

We continue to generate cash through careful management of our working capital
base and disposal of surplus assets. We are confident that the optimism
expressed in our Preliminary Results statement in March remains appropriate and
that we will deliver an improved performance at the half year and for the year
as a whole.'


For further information, please contact:

Stephen Roper, Chairman or David Taylor, Finance Director  Tel No:  01782 577566
Churchill China plc

Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich
Buchanan Communications Limited                            Tel No: 020 7466 5000


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