AGM Statement

Paterson Zochonis PLC
6 November 2000

                               
                     AGM Trading Statement


At the Paterson Zochonis AGM, Chairman Mr Anthony Green stated
that:

'Last year I explained that our programme of rapid
geographical growth and major capital expenditure had been
completed.  Our focus was to switch to improving our financial
performance in all those countries in which we operate.

I am very pleased to advise that we have made good progress in
achieving our objectives and that these improvements can be
seen in the figures set out in the annual report.  This
stronger performance is being carried on into the current
financial year which has started well.

Turning now to some of our major units.

In China trading continues to be extremely tough where we face
both multi-national and local competition.  What is really
encouraging though is that our cost base is under control and
costs have been substantially reduced, a process that is on-
going.

Our efforts now are concentrated on building up our
distribution network with the aim of creating a sales and
distribution system similar to those that have proven very
successful in Nigeria and now in Indonesia.  We always knew
that we were in China for the long-haul, it will take time and
will not be easy but the prize is huge and as such well worth
fighting for.

In Eastern Europe the improved performance referred to last
year is continuing.  We have achieved considerable reduction
in the cost base and we are now seeing a pick up in our export
business to Russia.

In Nigeria we have now increased our shareholding in our
subsidiary company to nearly 60%, clearly reflecting our
confidence in the future of the country.  Trading is showing
improvement with the economy benefiting from the high level of
world oil prices that Nigeria continues to enjoy.  The new
Civilian Government is establishing itself and the western
nations are certainly looking more favourably at Nigeria than
before - this can only help us.

I referred earlier to our business in Indonesia which is
expanding rapidly as we establish a strong sales and
distribution base throughout the country.  This growth is
being achieved with strong profits and we are confident that
this will continue.

Last year I referred to PZ's great strengths, namely our
Balance Sheet, our brands, our factories and most critically
of all, our people.  These remain our great strengths, and our
Balance Sheet is now even stronger and this gives us greater
flexibility going forward.

We shall continue to invest in those countries in which we are
already doing business especially in Asia, Africa and Eastern
Europe.  We intend to go on supporting our current brands both
local and international as well as developing new ones - in
other words a policy of organic growth.

In addition we are actively continuing to look for suitable
acquisitions and joint ventures in our countries of
operations.  However, we have no need to, nor have we any
intention of being rushed into this.  Although there is no
doubt that an acquisition would enable us to grow faster, at
the end of the day it must be the right acquisition at the
right price.

On a personal note I would now like to thank John Lee who
steps down as a non-executive director at the end of the year
after eleven years with us.  Throughout this period John's
sound advice and financial acumen have been of great benefit
to PZ and we shall miss him.

Looking to the future many of you will know that Rod Sellers
will join the Board on 1 January.  Rod is from the North-West
and has considerable commercial experience in the private
sector as well as his work in the more public areas.

Ladies and Gentlemen, in closing I would say that the year
ended 31 May 2000 was a year of strong recovery, demonstrably
shown by the improved profitability and cash flow.  The
current year, I am pleased to report, has also started
encouragingly broadly throughout the Group.

All of this increases our options for growth growing forward
and has most certainly given us the confidence to propose an
increased final dividend of 15.35p per share which together
with the interim dividend of 6.15p means an increase of 10.25%
over last year.'