Trading Update

Severfield-Rowen PLC
28 January 2005



28 January 2005


                    Trading update and possible acquisition


In its half year results announcement made on 21 September 2004,
Severfield-Rowen Plc ('the Company'), the market leading structural steel group,
announced that it was greatly encouraged with its results for the first half of
2004 and that the Group continued to trade in advance of its expectations for
the full year, citing increased demand for its products and positive market
conditions in the structural steel sector as a whole.  This trend continued for
the remainder of the year and it is expected that the Company's normalised
profit before tax for 2004 will be at least in line with current market
expectations.


The preliminary announcement of the Company's results will be made in late March
2005, at which time further details will be given.


The Company also announces that it has been granted the right to acquire Atlas
Ward Holdings Limited ('Atlas') for an aggregate purchase price of £1.21m.


Under an Agreement, entered into on 27 January 2005, between the Company and the
Bank of Scotland, ('BoS'), a major shareholder of Atlas, BoS has irrevocably
undertaken to accept an offer for its shares in Atlas based on that value should
the Company make such an offer on or before 26 March 2005 and in such
circumstances BoS has agreed to exercise its drag along rights requiring all
other shareholders in Atlas to likewise accept the offer.


The Company is now commencing due diligence with a view to considering the
making of an offer within the relevant period.


Atlas, based in Sherburn near Scarborough, North Yorkshire, designs, fabricates
and erects structural steelwork, and has a business and client profile which is
complementary to that of the Company.  In the year ended 31 December 2004 Atlas
had an estimated turnover of approximately £35m.


Enquiries


Severfield-Rowen Plc
Peter Levine, Chairman                                       Tel:  [phone]


Financial Dynamics
Richard Mountain                                             Tel:  [phone]









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