Trading Update

Churchill China PLC
05 January 2006


For immediate release                                             5 January 2006



                              CHURCHILL CHINA PLC

                                TRADING UPDATE



Following a satisfactory sales performance in the key end of year trading period
the Board of Churchill China plc expects to achieve current market forecasts for
pre-tax profit for the year to 31 December 2005.



Sales to Hospitality customers have continued the modest growth shown in the
first half year, with new products continuing to perform well. Sales to Retail
customers have, as expected, reduced, although a number of actions associated
with the revised strategy of direct shipment to customers from third party
suppliers have been successfully accomplished. The cost control measures
initiated earlier in the financial year continue to deliver the anticipated
savings.



Operating cash flow has been strong in the second half of the year and the
Group's year end cash position was significantly better than earlier
expectations of modest gearing.



The sale of surplus property is progressing well. The disposal of the remaining
part of the Anchor site for gross proceeds of £1.2m was completed in October.
These proceeds were paid into the Group's defined benefit pension scheme prior
to the year end. The proposed sale of the Alexander site is proceeding
satisfactorily.



The Group expects to announce its Preliminary Results for the year ended 31
December 2005 on 23 March 2006.



For further information please contact:




CHURCHILL CHINA PLC                                           TEL: [phone]
Stephen Roper, David Taylor

BUCHANAN COMMUNICATIONS                                       TEL: [phone]
Tim Anderson, Rebecca Skye Dietrich




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