Trading Statement

Filtrona plc 04 December 2007 FILTRONA PLC TRADING UPDATE ON PROGRESS IN 2007 Filtrona today issues a pre-close trading statement ahead of its results for the year ending 31 December 2007, which will be announced on 28 February 2008. Filtrona anticipates good continued performance in 2007 in line with management's expectations, despite the continued weakness of the US Dollar which is expected to reduce reported revenue by c. £25m and reported operating profit by c. £3m. Plastic Technologies -------------------- Plastic Technologies has again progressed satisfactorily with good underlying trading and the benefit of the Duraco acquisition being partly offset by trading conditions within the North American Plastic Profile and Sheet business, which remain challenging, and also by the revenue investments in FractureCode. The Protection and Finishing Products division has expanded its international distribution infrastructure further and the new location in Ningbo, China commenced trading this month. The Duraco business has been integrated successfully and is performing in accord with the pre-acquisition plan and performance of the MSI oil country tubular goods thread protector business has improved in the second half after a relatively soft second quarter. In Coated and Security Products, the tear tape and security products businesses have continued to perform well. The European Plastic Profile and Sheet business has progressed well but, as previously indicated, weak demand has persisted in the North American Plastic Profile and Sheet business and its financial performance is behind 2006. Fibre Technologies ------------------ Fibre Technologies has continued its strong performance and remains well ahead of last year. The Cigarette Filters business has sustained its improved operational performance in spite of the previously announced volume reductions. The business has benefited from a consistent improvement in operating performance at the Monterrey, Mexico facility and the successful exploitation of growth opportunities in Asia. The Bonded Fibre Components business has maintained its strong growth at all locations with the benefits of ongoing market share gains and new technologies and projects, particularly in the medical and inkjet printer cartridge markets. Looking forward, it is expected that Filtrona will sustain its growth momentum, with the Protection and Finishing Products, Coated and Security Products and the Bonded Fibre Components businesses all anticipated to make good progress in 2008. The performance within the North American Plastic Profile and Sheet business is expected to stabilise. In Cigarette Filters, market conditions are expected to remain challenging and further restructuring costs to improve productivity will impact Cigarette Filters' reported growth rates in 2008. This restructuring will also position the Company to meet known changes in demand from a smaller customer with operations in Europe. Despite some uncertain regional economic conditions and the ongoing challenges in the Cigarette Filters business, the Board remains confident that Filtrona's strong international market positions will enable it to maintain further positive progress in 2008. Enquiries: ---------- Filtrona plc Finsbury Mark Harper, Chief Executive James Leviton Steve Dryden, Finance Director Gordon Simpson Tel: 01908 359 100 Tel: 020 7251 3801 This information is provided by RNS The company news service from the London Stock Exchange

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