Chairman's AGM Statement

Morgan Crucible Co PLC
21 April 2006


                                                                 21st April 2006


                            CHAIRMAN'S AGM STATEMENT

2005 was a transformational year for Morgan Crucible with the Group being
approximately one year ahead of our stated target to achieve double-digit
margins by the end of 2006. We have improved the earnings quality of the Group
by positioning ourselves in less commoditised markets with a greater focus on
differentiated, value-added products. This shift in our portfolio mix, combined
with a continuing focus on rigorous cost management, supports our new goal of
targeting mid-teen operating profit margins for the Group over the medium term.

The disposal of the Magnetics division, completed towards the end of 2005, has
contributed to the transformation of the balance sheet. The proceeds from this
sale have enabled us to eliminate bank debt and substantially reduce the Group's
pension deficit. This balance sheet strength leaves us well placed to target
bolt-on acquisitions to support our core businesses in their pursuit of
profitable growth. I am pleased to report that earlier this month we
successfully completed the first bolt-on acquisition with the acquisition of the
ceramic fibres business of Cookson Group plc.

Trading and market conditions in 2006 year to date remain generally consistent
with those experienced in the second half of 2005. North America and Asia remain
strong and Europe, although weaker, is certainly strengthening. Despite input
cost increases for energy and raw materials the Board expects all businesses to
show continuing improvement in operating margins. The strategy and its
implementation has worked well to date and there is still more upside to pursue.
As a result, the Board is confident about Morgan's prospects for the full year.

Morgan Crucible delivered an excellent set of results in 2005. Our focus on
shareholder value has resulted in top line growth, improving margins and
positive cash flow thereby enabling us to recommend payment of a dividend. We
have seen another year of strong financial momentum and we are now well placed
within our chosen markets, supported by a strong financial base, to achieve our
aim of superior shareholder return. I would like to thank all our employees for
their hard work and achievements in 2005, and our investors for their continued
support. I would particularly like to thank Warren Knowlton for the leadership
he has shown in transforming Morgan Crucible since assuming the Chief Executive
role in December 2002; we wish him well when he retires in the third quarter and
we are confident that Mark Robertshaw, who will succeed Warren, will carry on
the good progress.


Enquiries:

The Morgan Crucible Company plc         01753 837000
Victoria Gould

Finsbury                                020 7251 3801
Robin Walker




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