Trading Update

Cropper(James) PLC
28 January 2008

Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Monday, 28 January 2008

                                                             IMMEDIATE RELEASE



                               James Cropper PLC
                                 Trading Update



STATEMENT BY MR J A CROPPER, CHAIRMAN


In the Preliminary Statement issued on 19 June 2007 I highlighted the
exceptional nature of TFP's performance over the previous financial year and the
challenges faced in maintaining the momentum of profitable growth in the current
year. Whilst turnover growth has met expectations over the course of the current
financial year, the impact of a changing product mix has diluted margin, which
combined with the weakness of the US$ and the higher cost base resulting from
the strategic acquisition of two new US subsidiaries earlier in the year, means
that TFP's profit will be lower than last year. Turnover growth is expected to
remain strong in both established and emerging markets.

I referred in the Interim Statement issued on 21st November 2007 to the prospect
of rising cost of pulp and natural gas dampening the profitability of James
Cropper Speciality Papers ('JCSP') in the second half year. Since that Statement
the cost of Northern Softwood Bleached Kraft, the market benchmark grade, has
risen progressively to US$880/tonne. There is no sign that this upward
progression will cease in the near-term. In December the cost of natural gas
increased sharply towards 60 pence per therm. Market forecasters currently
project that this price level will be sustained over the last quarter of the
financial year. Thus if these market projections relating to pulp and natural
gas prove to be correct then JCSP's profit for the full financial year will be
below that of the previous year.

Management teams in each subsidiary are implementing actions to mitigate the
impact of the issues outlined above and to ensure that the businesses remain on
course to deliver on their strategic plans. However in view of these factors it
must concluded that the Group's profit for the full financial year will be
significantly below current market expectations.



Enquiries:
Alun Lewis
Chief Executive

John Denman                             Fiona Tooley
Group Finance Director                  Director
James Cropper PLC                       Citigate Dewe Rogerson
Telephone: [phone]                 Telephone: [phone]
www.cropper.com



Andrew Kitchingman
Managing Director
Corporate Finance
Brewin Dolphin Investment Banking
Telephone: [phone]
Mobile: [phone]


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