Trading Statement

Halma PLC 27 October 2005 Halma p.l.c. TRADING UPDATE Halma, the leading safety, health and sensor technology group, issued a trading update today, 27 October 2005. Halma issues trading updates each October and April, ahead of its interim and full year announcements. Halma's interim results for the six months to 1 October 2005 will be announced on 6 December 2005. Good sales and orders momentum The Group's trading performance in the first half has been in line with expectations and the Board remains confident of the Group's prospects for the full year. Sales and orders for the first half were usefully ahead of last year. Although costs continued to be incurred to increase opportunities for the longer term, our product margins remained solid and there was underlying organic profit growth. Process Safety and Optics & Specialist businesses performed strongly. Investment increased in Fire & Gas and in Elevator & Door Safety to improve their longer-term growth prospects. The recovery of our Water and Resistors businesses is going to plan. Cash flow was in line with our normal trading patterns and we ended the half- year net cash positive. Focussed acquisition and disposal actions are ongoing We sold one of our smaller specialist businesses, SEAC Limited, to SEAC Holdings Limited for £1.25 million, and we exited the unprofitable Resistor Transit contracts as indicated earlier in the year. The small net loss and the goodwill write-off associated with these actions will be reported separately in the Income Statement this half year. The acquisitions completed in the first half, Radio-Tech and Netherlocks, are both trading in line with expectations. Simplified Reporting Sectors to be introduced immediately Commencing with the 2005/6 interim results, Halma will report segmental results under three business sectors: • Infrastructure Sensors (including Fire, Elevator & Door Safety) • Analysis (including Optics, Fluid Technology and Water) • Industrial Safety (including Gas, Process Safety and Resistors) The main reasons for this change are to: • group businesses with similar market growth rates, market drivers and operating characteristics, whilst improving the opportunities for technical and commercial collaboration within the Group; • make ongoing communication of the Group's business and strategy more transparent to stakeholders. A reconciliation of Halma's historic results under the three new business sectors will be published on 28 November 2005 in advance of our half-year results announcement. For further information, please contact: Halma p.l.c. Tel: +44 (0)1494 721111 Andrew Williams, Group Chief Executive Kevin Thompson, Group Finance Director Hogarth Partnership Limited Tel: +44 (0)20 7357 9477 Rachel Hirst/Andrew Jaques A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com This information is provided by RNS The company news service from the London Stock Exchange

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Halma (HLMA)
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