Final Results

Porvair PLC
24 January 2001

FOR IMMEDIATE RELEASE                          24 January 2001


Contacts:

Ben Stocks, Chief Executive
Mark Moran, Group Finance Director
Porvair plc
today                                                   0207 466 5000
at all other times                                      01553 761111

Charles Ryland/Catherine Miles
Buchanan Communications                                 0207 466 5000



                           PORVAIR plc ('Porvair')

           PRELIMINARY RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2000

Porvair, the innovative advanced materials group, announces preliminary
results for the year ended 30 November 2000.

KEY POINTS

*         Profit before tax and goodwill amortisation up 43% to £6.0m (1999 :
          £4.2m).

*         Filtration : strong performance with operating profit up 60% to 
          £4.3m (1999 : £2.7m) - market focus moved towards higher margin areas.

*         Consumer businesses : operating profits up 15% to £2.5m (1999 : 
          £2.2m).

*         Porvair Fuel Cell Technologies : exciting technical progress in
          2000, prompting substantial increase in R&D expenditure from the start
          of 2001.

*         Final dividend up 5% at 4.3p per share (1999 : 4.1p), making a total
          for 2000 of 6.7p per share (1999 : 6.4p) - dividend cover increased to
          2.4 times.


John Morgan, Chairman, said:

'Porvair is at an exciting point in its development after further strong
progress made in 2000.  The existing businesses are performing well and we
have an attractive medium term opportunity in the development of materials for
fuel cell programmes.  2001 will see a significant investment in development
resources to pursue this opportunity as we attempt to capitalise on our
progress to date.'

Chairman's Statement

I am delighted to report that profit before tax and goodwill amortisation
increased by 43% to £6.0m (1999 : £4.2m).  This result was delivered by
following a strategy combining the development of materials technology with
continuous improvement in operational efficiency.  The trading environment was
mixed; there was a buoyant US economy, that helped drive a very strong
performance at Selee, whilst the UK based businesses had to cope with the
effects of strong sterling.  Overall though it is pleasing that sales were
ahead by 5% at £65.6m (1999 : £62.5m).

Earnings per share before goodwill amortisation increased to 16.4p (1999 :
12.6p).  However, the prior year figure benefited from a low effective tax
rate; the comparable figure, on a similar 30% tax rate as in 2000, gives a
comparative earnings per share of 11.5p.  Accordingly, the increase in
earnings per share on this basis is 43%, in line with the profit increase
detailed above.

The Board is recommending a final dividend of 4.3p per share (1999 : 4.1p)
which increases the total for the year by 5% to 6.7p per share (1999 : 6.4p).
The total dividend is covered 2.4 times by earnings.

Ernie Bostwick retired from the Board on 30 November after serving as a
non-executive director since 1988.  Ernie made a significant contribution to
Porvair's development as a public company and its growth during that period.
As we move forward his contribution and personality will be greatly missed.
We wish him well in his retirement.

On behalf of the Board, I also want to thank all of our employees for their
continued hard work and commitment to Porvair.  Their efforts are enabling us
to make considerable progress across all areas of the business.

Porvair is at an exciting point in its development after further strong
progress made in 2000.  The existing businesses are performing well and we
have an attractive medium term opportunity in the development of materials for
fuel cell programmes.  2001 will see a significant investment in development
resources to pursue this opportunity as we attempt to capitalise on our
progress to date.

John Morgan, Chairman
24 January 2001


Operating review

Group

Porvair is a materials science company.  The strategy is to identify and
develop materials technologies that display clear technical edge, strong
market position and significant opportunities for profitable growth.

Our materials science expertise is focused in four areas :

*                     Advanced Ceramics

*                     Sintered metals and plastics

*                     Microporous acrylics

*                     Polyurethane membranes


A brief synopsis of the Group's activities can be found at the end of this
statement, or at www.porvair.com.

Operational performance 2000

2000 was a good year for Porvair.  Profit before tax and goodwill amortisation
increased 43% to £6m, cash and operational controls raised operating profit
margins 32% to 10.5% and excellent progress was made in our exciting new
product development programme.

The filtration division performed well in 2000.  New product driven sales
growth increased sales 9% to £35.9m (1999 : £32.8m), and operating profits
before goodwill amortisation rose 60% to £4.3m (1999 : £2.7m).

Selee, our advanced ceramic business, was a key part of this strong
performance.  Demand for its core molten metal filters was robust and we made
good progress with the development of new products.  Through both technical
licences and our own development programme, we are moving Selee's market focus
into higher margin areas.  Aluminium consumables, high value metals filtration
and certain investment casting products have been identified as segments in
which our technical expertise will give us competitive edge and promote
profitable growth.  It is encouraging to see the benefits of this coming
through in the results, with operating margins in 2000 improving 23% over
1999.

Our sintered materials businesses have performed ahead of expectation for
2000, and are experiencing growth in particular in the US.  The strength of
sterling has made UK markets more competitive during the year but we are
encouraged that operating margins have been sustained at 24%.

In the microporous acrylic business, which services the needs of the global
ceramic industry, we have continued the recovery started last year.  In the
second half of 2000 we launched our technology for the semi-automatic
manufacture of lavatories, and have already received orders for the system.
We have been able to patent several critical elements of this development.
The product, known as the 'PC570 bowl', has performance characteristics well
ahead of any competitive designs and offers customers a substantial
improvement in production efficiency. This product represents a significant
step forward and the sanitaryware market's response has been encouraging.

The consumer businesses develop, manufacture and market polyurethane
membranes.  As previously advised at the half year, the expectation for 2000
was to strengthen margins against a steady level of sales, and it is pleasing
to report an operating profit improvement before goodwill amortisation of 15%
to £2.5m (1999 : £2.2m).  Sales, as expected, remained similar to 1999
although Porelle, the waterproof/breathable product range, has again made
progress in the year.  A small part of this business is the proprietary
Sealskinz waterproof sock.  For the autumn season we launched a second
generation product building on our patent protection.  Sales through both
retail channels and the www.sealskinz.com website to date have been strong.
During the year we strengthened our Permair leather business by consolidating
operations in North America and launched product ranges aimed at Children's
and occupational footwear applications.  These products are now selling well
for the 2001 retail season.

Porvair Fuel Cell Technologies

As mentioned at the interim announcement, during 2000 we drew together the
various activities  concerned with fuel cells componentry under one technical
and marketing umbrella.  This unit - Porvair Fuel Cell Technologies - is
growing rapidly, both in its commercial activity and its technical resource
requirements.  Our materials - both metallic and ceramic - solve a number of
problems encountered by fuel cell developers, particularly in heat exchange,
catalyst substrate, emissions and moisture control applications.  Although
most commentators do not expect fuel cell technology to become commercial for
several years, this market is a very exciting prospect for Porvair.  We are
working with most of the major fuel cell development companies, and have
embarked on an ambitious technical programme that will position us well as a
specialist supplier and manufacturer of fuel cell and fuel reformer components
as the market develops.  This opportunity has prompted an evolutionary change
in operational strategy for the Group, and is discussed further in the 2001
strategic outlook section at the end of this review.

Management objectives 2001

During the last two years, our objectives have been to find growth through new
product development, improve our return on capital employed and tighten
operating efficiencies with reference to key performance indicators.  As
already outlined in this review good progress has been made.  In 2001 our
emphasis will evolve as we marshall our resources behind those technologies in
our portfolio that have the most exciting growth characteristics.  Some parts
of our business will be encouraged to generate profits and cash to ensure that
the higher growth opportunities are properly resourced from within the Group.
This is a change in operational emphasis, and management objectives for 2001
are aligned to making this change happen.

Strategic outlook 2001

One of the successes of 2000 at Porvair has been a series of technical
breakthroughs early in the year with porous and microporous metals and
ceramics - a range of products we are developing under the trademarks
MicromassTM and MetPoreTM.

These materials have some exciting potential applications, particularly in
fuel cell related technology.  Fuel cell components use a variety of porous
media to control and enhance the chemical reactions that drive the fuel cell.
We are working with most of the leading companies in this field, and the
materials - both metal and ceramic - are under test in heat exchange, catalyst
substrate, emissions and moisture control applications.

Industry commentators expect fuel cell technology will have a substantial part
to play in meeting the world's growing requirement for electrical power.
First commercial applications are expected to be 3 to 5 years away.

Development of such a field is a very exciting prospect for the Group, but
clearly it does not come without risk.  New technologies can fail to deliver
their promise, or can take much longer to do so than initially anticipated.
Such issues notwithstanding, we view this opportunity as significant for the
Group, and believe that with our materials technology, intellectual property
position and manufacturing know-how Porvair can become a leading provider of
components and subsystems for fuel cell, fuel reformation and allied systems.

In consequence, we will increase research and development expenditure
substantially from the start of 2001.  We are working in new areas of
materials science and intend to move to full scale production ahead of the
market need. This investment programme will be treated as revenue expenditure
and will impact on Group profits from 2001.  This is an evolutionary change of
emphasis for Porvair and has ramifications across the business.  We will fund
the investment ourselves, in order to retain title to intellectual property,
and believe it important that we do so from existing cash generating
resources.  This may mean reviewing certain investment and development
programmes in some parts of the Group and there may be short-term costs
associated with this in 2001.  We will be in a position to quantify these
later in the year.

Whilst this is a change of emphasis, and 2001 will be a transition year, the
primary strategic goal of Porvair does not change : to identify and develop
material technologies that display clear technical edge, strong market
position and significant opportunities for profitable growth.

PORVAIR AT A GLANCE

Porvair is an innovative advanced materials group.  We specialise in advanced
ceramic, acrylic, sintered materials and polyurethane membranes.

Material       Locations           Activities

Advanced 
ceramics:

- metals     Hendersonville, Brings ceramics expertise to the field of molten
filtration   USA             metal handling, catalyst media and thermal
                             processing.   World leader in aluminium
                             filtration.

- fuel cell  Hendersonville, Develops media and components for fuel cell, fuel
technologies USA             reformer and allied applications.

Acrylic      King's Lynn, UK Supplies sanitaryware tableware customers
materials                    worldwide with long-life alternatives to
                             traditional ceramic moulding media.

Sintered
materials:
- filtration Wrexham, UK     Develops innovative sintered metal and polymer
                             solutions to filtration problems.

- sciences   Shepperton, UK  Specialises in assay equipment and other
                             microplate products for the Life Sciences market.

Polyurethane King's Lynn, UK Specialises in polyurethane membranes that enhance
membranes    Acton, Canada   the performance of leather and textiles to make
             China (50:50    them waterproof and breathable.
             JV)
             
             

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 30 November 2000


                                                                 Group   Group
                                                                  2000    1999
                                                          Note   £'000   £'000
Turnover

Continuing operations (including share of joint venture)        65,613  62,535
Less : share of joint venture                                  (1,061)   (964)
                                                             2  64,552  61,571
Cost of sales                                                  (44,292) (43,780)
Gross profit                                                    20,260  17,791

Distribution costs                                             (2,092) (2,043)
Administrative expenses                                        (13,418) (12,949)
Group operating profit before goodwill amortisation              6,863   4,912
Goodwill amortisation                                          (2,113) (2,113)
Group operating profit before joint venture - continuing         4,750   2,799
operations

Share of operating profit in joint venture                          35      62
Group operating profit including joint venture                   4,785   2,861

Interest payable (net)                                           (877)   (749)
Profit on ordinary activities before taxation                    3,908   2,112

Tax on profit on ordinary activities                           (1,808)   (987)
Profit on ordinary activities after taxation                     2,100   1,125

Equity minority interests                                            9       6
Profit attributable to shareholders                              2,109   1,131

Dividends                                                      (1,723) (1,644)
Retained profit/(loss) for the financial year                      386   (513)

Earnings per share

   - basic and diluted                                       1    8.2p    4.4p
   - basic and diluted before goodwill amortisation              16.4p   12.6p



Reconciliation of movements in equity shareholders' funds

For the year ended 30 November 2000


                                                                  GROUP

                                                                2000       1999
                                                               £'000      £'000
Profit attributable to shareholders                            2,109      1,131

Dividends                                                    (1,723)    (1,644)

Retained profit/(loss) for the financial year                    386      (513)

New share capital subscribed                                     121          -

Exchange differences                                             270        184

Net increase/(reduction) in equity shareholders' funds           777      (329)


Opening equity shareholders' funds                            42,866     43,195

Closing equity shareholders' funds                            43,643     42,866




Statement of total recognised gains and losses

            For the year ended 30 November 2000

                                                                       GROUP

                                                                     2000  1999
                                                                    £'000 £'000

Profit attributable to shareholders                                 2,109 1,131


Exchange differences on retranslation of net assets of subsidiary
undertaking and foreign borrowings                                    270   184
                                                                      

Total gains relating to the year                                    2,379 1,315




BALANCE SHEET

As at 30 November 2000

                                                                   GROUP

                                                                2000       1999
                                                               £'000      £'000

Fixed Assets                                                   
Goodwill                                                       18,599    20,712
Tangible assets                                                20,543    19,368
Investments
   Investments in subsidiary undertakings
   Investments in joint venture :
        Share of gross assets                                     305       292
        Share of gross liabilities                               (250)     (272)
                                                                   55        20

                                                               39,197    40,100
Current Assets

Stocks                                                         11,993    11,052

Debtors                                                        15,914    13,217

Cash at bank and in hand                                          856       665

                                                               28,763    24,934

Creditors
Amounts falling due within one year                          (13,179)  (12,029)

Net current assets                                             15,584    12,905

Total assets less current liabilities                          54,781    53,005

Creditors
Amounts falling due after more than one year                 (10,668)   (9,787)

Provisions for liabilities and charges                          (434)     (320)


                                                               43,679    42,898


Capital and reserves

Called up share capital                                           515       514
Share premium account                                           1,331     1,211
Other reserves                                                  5,362     5,092
Profit and loss account                                        36,435    36,049

Total equity shareholders' funds                               43,643    42,866

Equity minority interests                                          36        32

                                                               43,679    42,898


Approved by the Board on 24 January 2001


B D W Stocks, Director
M Moran, Director


CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30 November 2000



                                                          Group           Group
                                                           2000            1999
                                           Note           £'000           £'000


Net cash inflow from operating                4           6,758           8,649
activities

Returns on investments and servicing of
finance
Interest received                                    26              25
Interest paid                                      (815)           (785)

                                                             (789)         (760)

Taxation
UK corporation tax refunded                         151             108
Overseas tax paid                                  (602)           (643)

                                                            (451)          (535)


Capital Expenditure
Purchase of tangible fixed assets                (3,583)         (4,327)
Sale of tangible fixed assets                        80               7

                                                          (3,503)        (4,320)

Acquisitions and disposals
Purchase of Marand goodwill                                    -           (418)


Equity dividends paid                                     (1,670)        (1,644)


Financing

Issue of ordinary share capital                     121                       -

Debt due after one year

Increase in net borrowings                    6   (125)             430


                                                            (4)             430

Increase in cash in the year                  6             341           1,402




                                    NOTES


1.         Earnings per share

            The basic earnings per share as shown in the profit and loss
account are calculated by reference to the profit attributable to shareholders
and the average number of shares in issue during the year on a time weighted
basis of 25,694,323 (1999 : 25,683,073).  For the diluted earnings per share,
the weighted average number of ordinary shares is adjusted to assume
conversion of all share options outstanding at the year end.  The earnings per
share before goodwill amortisation has been calculated by adding back £
2,113,000 (1999 : £2,113,000) to profit after tax attributable to shareholders
of £2,109,000 (1999 : profit of £1,131,000).

2.         Turnover and segmental analysis

The analysis by class of business and geographical segment of the Group's
turnover, operating profit and net assets is set out below :


                                        2000                      1999

                            Consumer Filtration       Consumer Filtration
                            division   division Total division   division Total
                               £'000      £'000 £'000    £'000      £'000 £'000

Turnover by geographical
destination

United Kingdom                 3,176      5,756 8,932    4,843      6,325 11,168

Continental Europe             8,616      3,384 12,000   6,893      3,893 10,786

Americas                       8,803     22,727 31,530   9,336     19,806 29,142

Asia                           6,634      2,335  8,969   6,134      1,351  7,485

Australasia                      112        567    679     220        531    751

Africa                         2,339      1,164  3,503   2,275        928  3,203


                              29,680     35,933 65,613  29,701     32,834 62,535

Less share of joint venture   (1,061)         - (1,061)   (964)         -  (964)

                              28,619     35,933 64,552  28,737     32,834 61,571

Turnover by geographical
origin

United Kingdom                22,659     12,044 34,703  23,261     12,578 35,839

Americas and Asia              7,021     23,889 30,910   6,440     20,256 26,696


Less share of joint venture  (1,061)          - (1,061)    (964)        -  (964)


                              28,619     35,933 64,552   28,737    32,834 61,571


Operating profit

Operating profit before
goodwill amortisation and
share                          2,518      4,345 6,863    2,189      2,723 4,912
of joint venture

Goodwill amortisation           (794)   (1,319)(2,113)    (794)  (1,319) (2,113)


Share of joint venture            35          -    35       62          -    62

Operating profit after
goodwill amortisation and
share                          1,759      3,026 4,785    1,457      1,404 2,861
of joint venture


Net Assets

Net assets before goodwill
and net borrowings :

   United Kingdom             18,651      5,023 23,674   16,730     5,782 22,512

   Americas                      395     10,971 11,366    1,942      7,229 9,171

                              19,046     15,994 35,040   18,672    13,011 31,683

Goodwill                         560     18,039 18,599    1,354    19,358 20,712

Net borrowings                                  (9,960)                  (9,497)

                                                43,679                    42,898


                              NOTES (continued)

3.         Employees

                                        2000                         1999
                                   Average    Year             Average Year end
                                               end

Consumer division                      277     276                 266      263
Filtration division                    372     346                 357      366
Head office                              9      10                   9        8
                                       658     632                 632      637
North American employees included      257     236                 230      233
above


4.         Reconciliation of operating profit to net cash inflow from
operating activities


                                                                    2000   1999
                                                                   £'000  £'000
Group operating profit including joint venture                     4,785  2,861
Goodwill amortisation                                              2,113  2,113
Depreciation                                                       2,938  2,909
Loss on sale of fixed assets                                          58     39
(Increase)/decrease in stocks                                      (586)  2,287
Increase in debtors                                              (2,115)  (696)
Decrease in creditors                                              (400)  (325)
Share of joint venture profit                                       (35)   (62)
Net cash inflow from operating activities before exceptional       6,758  9,126
items
Exceptional items                                                      -  (477)
Net cash inflow from operating activities                          6,758  8,649



5.         Reconciliation of net cash flow to movement in net borrowings


                                                               2000        1999

                                                              £'000       £'000
Increase in cash in the year                                    341       1,402

Decrease/(increase) in borrowing and lease financing            125       (430)
Change in net borrowings from cash flows                        466         972
Translation difference                                        (929)       (233)
Movements in net borrowings in year                           (463)         739
Opening net borrowings                                      (9,497)    (10,236)
Closing net borrowings                                      (9,960)     (9,497)


6.         Analysis of net borrowings


                                                    Other Exchange
                             30/11/99  Cash flow non-cash movement   30/11/00
                                £'000      £'000    £'000    £'000      £'000

Cash in hand and at bank          665        114        -       77        856
Overdrafts                      (250)        227        -        -       (23)

                                             341        -


Borrowings due after 1 year   (9,787)          -      125  (1,006)   (10,668)
Borrowings due within 1 year    (125)        125    (125)        -      (125)

                                             125

Total                         (9,497)        466        -    (929)    (9,960)



7.         Dividend

            The Board is recommending a final dividend of 4.3p per share (1999
: 4.1p) to be paid on 6 April 2001 to shareholders on the register at the
close of business on 16 March 2001.