AGM Statement

Cropper(James) PLC
03 August 2005


Issued by Citigate Dewe Rogerson Ltd, Birmingham
Wednesday, 3 August 2005

                                                               IMMEDIATE RELEASE

                              James Cropper PLC
                            Annual General Meeting

At today's (3 August 2005) Annual General Meeting, James Cropper, Chairman told
shareholders:

'The Group has experienced a challenging start to our current financial year and
although turnover has been broadly in line with the first quarter of last year,
this is against a backdrop of significant cost increases and subdued business
confidence.

In my Preliminary Results statement issued on 21 June I drew attention to the
adverse impact that the rising cost of energy would have on profitability in the
current financial year. During the course of the previous financial year energy
costs increased by 28% to £2.7 million. Energy costs in the first quarter of the
current financial year were 40% higher than the comparable period last year.

The escalating cost of energy primarily affects James Cropper Speciality Papers.
Given the uncertainties and fluctuations in the forward energy markets, it is
extremely difficult to estimate the full year effect of rising energy costs at
this early stage in the financial year. Although Speciality Papers traded
profitably in the opening quarter, it is inevitable that it will move into a
loss making position later in the year should currently quoted winter energy
costs materialise. Despite the competitive nature of the market place,
discussions have already begun with customers to find those areas where price
increases are achievable in order to mitigate the impact of these rising costs.

Northern Bleached Softwood Kraft pulp, the market benchmark, opened the year at
US$645 per tonne falling to US$600 by the end of June, whilst the cost of
hardwood pulp increased from €450 per tonne to €490 over the first quarter.
Latest market indications suggest that the cost of softwood and hardwood pulp
will remain close to current levels for the balance of the year. If this were to
be the case, then combined with the recent strengthening of both the US$ and
Euro, the cost of pulp in the current year would be some 5% higher than last
year.

Recent exchange rate trends have aided Technical Fibre Products and James
Cropper Converting, both of which have significant turnover in US$s.

Despite the current slow down in consumer spending across the retail sector, The
Paper Mill Shop will continue to expand the number of its outlets over the
course of the year to take advantage of market opportunities and growing sales.

In response to the difficult trading circumstances the Group will focus its
efforts on consolidating the sales gains of the previous financial year, while
developing and implementing plans to improve profitability through operational
efficiencies and business optimisation.

While I am confident that the steps to reverse the current decline in the
Group's profitability will be effective in the near term, the full effect of
these measures will not be felt in this financial year. There is therefore a
possibility that the difficulties we face in Speciality Papers may cause the
Group as a whole to make a loss before taxation in the current financial year.'

All Resolutions relating to both the ordinary business and special business were
duly passed.


Enquiries:

Alun Lewis, Chief Executive
John Denman, Group Finance Director      Katie Dale, Senior Account Manager
James Cropper PLC                        Citigate Dewe Rogerson
Tel: [phone]                        Mobile: [phone]



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