Chairman's Statement

Morgan Crucible Co PLC
26 May 2000


THE MORGAN CRUCIBLE COMPANY PLC

Chairman's Statement


As  you  will have seen from our 1999 report and accounts, the changes taking
place within Morgan have been, and are, substantial.

The  proceeds  from  the  disposal of our non-core businesses  have  exceeded
market  expectations.  We announced earlier this year that we had sold  Power
Industry  Products for £44M and recently Laser Diode Inc. for  US$26.5M.   We
are   close  to  completing  our  disposal  programme  with  three  remaining
businesses  to be sold. Additionally, Vacuumschmelze, a world leader  in  the
fast   growing   magnetic  systems  markets,  supplying   sectors   such   as
telecommunications and bio-medical, was purchased for £115M  at  the  end  of
1999 and is fully meeting our expectations.

The  Group's  overall order book is higher than last year's and continues  to
grow,  although in the first half the rate of profit growth has  been  slower
than anticipated.  This is due to a combination of adverse exchange rates and
lower  margins  in Thermal Ceramics arising, in part, from the  now  resolved
start-up  problems at our new Mexican facility. The Thermal Ceramics business
is  also  in the middle of a major global product launch of a unique  Morgan-
developed high temperature bio-soluble insulation material.

The  real  benefits  of  Morgan's reorganisation  programmes,  which  started
eighteen  months  ago,  are now beginning to emerge and  your  Board  remains
confident   that  the  rationalisation  and  focus  on  growth   markets   is
transforming the prospects of the Group.