AGM Statement

Cropper(James) PLC
03 August 2006


Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Thursday, 3 August 2006

IMMEDIATE RELEASE

                               James Cropper PLC
                             Annual General Meeting

At today's Annual General Meeting, Mr James Cropper, Chairman told shareholders:

'I am pleased to report that the Group has traded profitably in the first three
months of the current financial year.

Despite the recent weakening of the US$, growth at Technical Fibre Products
continues, with profits well ahead of the same period last year. The global
resurgence of commercial aircraft new-builds and the development of new concept
military aircraft, based on composite materials, have been the prime drivers
behind this growth. European sales of insulation and composite materials for use
in transportation and industrial applications are also progressing well.

The performance of James Cropper Converting is also encouraging. The investment
and product rationalisation identified in the Annual Report will be completed by
the early Autumn, therefore allowing the decommissioning of older equipment.
This development will lead to significant improvements in capability, output and
productivity, resulting in increased profitability in the second half of the
year.

The depressed level of consumer spending across the whole retail sector
continues to affect The Paper Mill Shop, which incurred a loss in the first
quarter of the current financial year. Traditionally however, this is a quiet
trading period for the business. Although no new store openings are anticipated
for the remainder of the current financial year, brand development will continue
through the launch of an Internet offering in the Autumn.

James Cropper Speciality Papers traded profitability in the opening quarter.
However as reported in my Preliminary Results statement issued on 20 June 2006,
I stated that the outlook for Speciality Papers would remain difficult for the
foreseeable future given the volatile nature of energy markets and the upward
trend in pulp costs. On a positive note, plans to resume the sales growth
experienced two years ago are progressing. These include encouraging prospects
in packaging grades, filing materials and industrial grades. Further price rises
are also in the process of being agreed with customers.

During the course of the previous financial year, total energy costs increased
by 54% to £4.1 million. In the first quarter of the current financial year gas
costs were 9% higher than the 2005 comparable period. If latest market forecasts
materialise, gas costs for the full year will be 20% above that of the previous
year. The waste heat recovery unit fitted to our CHP plant is now expected to be
operational by the Autumn and this investment is expected to reduce gas
consumption by up to 5% per annum. Our energy consumption will further reduce
through more economical use and other energy saving investments already made or
planned.

Global pulp inventories continue to decline, owing to strong demand and reduced
pulp production, mostly resulting from closures in North America. As a
consequence, pulp is expected to advance further on an upward trend throughout
the remainder of the current financial year. Northern Bleached Softwood Kraft
pulp, the market benchmark, started the year at US$645 per tonne and had risen
to US$710 per tonne by the end of July 2006. Latest market indications suggest
that the cost of NBSK will reach US$730 per tonne by the end of the second
quarter. Should these predictions prove to be correct, then combined with the
recent exchange rate changes in the US$ and Euro, the cost of pulp in the
current year would be some 9% higher than last year.

continued...

                                      -2-

Given these over-riding factors, it should therefore be anticipated that the
profitability of Speciality Papers will deteriorate during the course of the
current financial year.

Cash management is under firm control. Investment over the next two years will
be prioritised on projects to minimise energy costs, improve efficiencies and
reduce our dependence on external waste water treatment.

The three manufacturing subsidiaries will continue their drive to grow sales of
higher margin products, while developing and implementing plans to improve
profitability through operational efficiencies and business optimisation.

Although it is clearly going to be another challenging year for the Group, I
remain confident that our on-going plans will return the Group to acceptable
levels of profitability in the near to medium term.'

All Resolutions 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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