AGM Statement

LPA Group PLC
14 March 2002

LPA GROUP PLC
14 MARCH 2002


                                 LPA GROUP PLC
                  CHAIRMAN'S ANNUAL GENERAL MEETING STATEMENT
                                 14 MARCH 2002

At the Annual General Meeting of LPA Group Plc held today all the resolutions
were passed.

The Chairman Michael Rusch commented as follows;

'A year ago I explained that the chaos on Britain's railways had led to
substantial delays in the re-negotiation of the franchises of the Train
Operating Companies and the orders for replacement rolling stock, and inevitably
had had a damaging impact on our businesses. Today I am pleased to say that
there appears to be light at the end of the tunnel. It is not yet very bright
and it does flicker, but orders for refurbishment work have picked up quite
strongly and some orders for rolling stock have been placed, but most
importantly not, as yet, in the volumes required to meet the aspirations of the
new Strategic Rail Authority's Strategic Plan. This bodes well for the future
but in the near term there are still some uncertainties.

The West Coast Mainline Project, for which a 44 car extension has been received,
has also been delayed.  However further orders for up to 135 cars are in
prospect.

Some recent announcements relating to the Rail Market may have confused
shareholders.  The Chiltern Franchise extension announced in January 2002 was
already foreshadowed in August 2000.  The South Central Trains order announced
this week was actually a contract extension of 160 cars and confirmation that
Govia would honour the orders already placed by Connex when they were the
previous franchise holder.

The events of 11th September have had a detrimental effect on our aerospace
related business. Some orders have been cancelled, schedules have been delayed,
and some orders not placed. The general uncertainty and expectation that the
downturn in manufacturing will persist and extend in due course to other sectors
is not helping sentiment. Nevertheless we are pursuing many opportunities at
home and abroad which if achieved will result in progress for the group in the
future.  Winning new business, however, is challenging.

Trading in the first half to date has been mixed with some good performances
being diluted by some not so good performances. None-the-less, we are striving
for consistency and we have continued to reduce the cost base to assist in this
process. Performance in the year as a whole will be dependent on a continuing
recovery in our markets, which are showing some small, if fragile, signs of
life.

We announced our intention, together with the preliminary figures on 22nd
January, to transfer our quotation from the Full List to the Alternative
Investment Market. Accordingly, we have consulted with all our major
shareholders and with certain shareholders' advisors. While there have been some
expressions of concern, principally by those who hold their shares in a PEP or
an ISA, and who would have to transfer their shares so that they are
individually held, and those who were concerned about potential loss of
liquidity in the market for the shares, the overwhelming sentiment is in favour
of the move. Accordingly, I am confirming today that we will move to the
Alternative Investment Market with effect from the start of business on Tuesday
7 May 2002.

Progress has been made over the last year and the strengthened management team
is working hard to ensure that this continues. The board believe that the
markets we serve, being large, have the capacity to afford the Group
opportunities for growth, and that we are following the right strategy to
deliver satisfactory progress, and shareholder value, in due course.'


Enquiries

Peter Pollock
Chief Executive                           07881 626 123

Ian Dighe
Bridgewell Corporate Finance Limited      020 7626 3322

Russell Cook
Teather & Greenwood Limited               020 7426 9000

END


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