Trading Statement

De La Rue PLC
23 September 2002





                                 DE LA RUE PLC

               TRADING UPDATE FOR THE PERIOD TO 28 SEPTEMBER 2002



De La Rue is today issuing its trading update prior to entering the closed
period ahead of publication of its interim results on 26 November 2002.



Outlook for 2002/2003



As a result of continued poor trading by some parts of the business since the
AGM, there has been a further deterioration of the expected first half operating
result.   A strong order book in Currency, planned action to reduce costs in
Security Products' manufacturing base and overheads and some encouraging signs
in Cash Systems leads the Board to expect a significantly better result in the
second half than the first half.  Given some of the uncertainty in the general
economic environment worldwide, trading in certain parts of the business
continues to be slow.  While De La Rue expects the second half operating result
to be comparable to the same period last year, the expected shortfall in the
first half means that the operating result for the whole year will be
significantly below last year.



Currency



Currency continues to have a strong banknote order book although, as previously
indicated, fulfilment was delayed by an unusually large number of new designs,
which take longer to prepare than repeat orders.  This situation has been
resolved and, combined with a recent upturn in demand for banknote paper, the
Company expects a strong second half in Currency, as anticipated.  For 2003/2004
it expects to see a return to more normal sales patterns, particularly in paper,
with a consequent benefit to the De La Rue Tapes business.



Security Products



As previously indicated, trading in the Security Products business continues to
be weak.  The Company is announcing separately today the results of the
strategic review of its manufacturing operations.  The costs of this review will
result in an exceptional charge to be taken in the current year of £17.7m, £6.1m
of which is non-cash.   A combination of the proposed restructuring, the
acquisition of House of Questa, also announced separately today, and associated
reductions in overheads in the division should result in annual savings of
approximately £5m.  The majority of these will come through in the 2003/2004
financial year.



Cash Systems



In the AGM statement on 15 July 2002 the Company indicated that the year had got
off to a slower start than expected, primarily due to Cash Systems' customers in
the euro zone holding back on re-ordering following the euro changeover.  Order
conversion continues to be slow in some of the important European markets with
the consequence that the operating result for the first half will be below
previous expectations.  However, in the USA, which is the largest single market,
there are encouraging increases in sales in the Financial Institutions business.
In Currency Systems, there has been a significant increase in worldwide sales
of the 6000 banknote sorter.  But this is more than offset by delays in ordering
decisions for several major projects by US casinos and commercial banks.



Global Services



A combination of continued difficult trading conditions in Brand Protection and
timing delays in Identity Systems' projects has led to a slow first half in
Global Services.  In Identity Systems, the overall size and complexity of a
number of projects is greater than last year and consequently decision cycles
are much longer.  The division is expected to make a modest profit in the second
half although this will not offset first half losses.



Sequoia Voting Systems



Sequoia Voting Systems, De La Rue's US-based election systems business, is
progressing satisfactorily.  Sequoia was successful in winning bids in the first
part of the year in several counties in Florida, in preparation for the current
election season.  There is currently a high level of enquiries for new election
systems and Sequoia has several quotations under consideration.  The Board is
hopeful of a favourable outcome, but in the event that it is not possible to
convert these enquiries to shipments in the final quarter of the 2002/2003
financial year, we anticipate that the business will make a small loss.



Share buy back



In May 2002, the Company announced its intention to acquire for cancellation up
to 10 per cent of issued share capital in the market place.  To date, De La Rue
has acquired 10,168,000 shares or 5.2 per cent at a cost of £30.3m. The Group
has authority from shareholders to buy up to 10 per cent of issued share
capital.



FRS 17 - Pensions Accounting



The Company previously announced its intention to adopt FRS 17 for the current
year.  The Accounting Standards Board has announced subsequently that full
implementation of the standard has been deferred in order for a consensus on
pensions accounting to be reached with the International Accounting Standards
Board.  The Company has consequently decided to defer full implementation but
will continue to comply with the transitional arrangements.



Outlook for 2003/2004



As highlighted in the AGM statement in July, despite the current difficult
trading conditions, the Board remains confident that De La Rue's underlying
business is strong.  In addition, a combination of anticipated market
developments and actions to improve manufacturing efficiencies will position the
Company to make significant progress in 2003/2004.



                                     -ends-





For further information please contact:



David Finnett      Group Financial Controller        [phone]
Mark Fearon        Head of Corporate Affairs         [phone]
Stephen Breslin Brunswick                            [phone]



23 September 2002


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