Acquisition & Trading Update

SIG PLC
24 June 2005


                               TRADING STATEMENT

                        ACQUISITION OF LS GROUP LIMITED

                                  24 JUNE 2005

SIG plc, the leading supplier of insulation, roofing and commercial interiors
products, issues the following statement regarding its acquisition of LS Group
Limited, together with its regular trading update for the 6 months to 30 June
2005 in advance of the interim results which will be announced on 14 September
2005.

• Acquisition of commercial interiors manufacturer LS Group Limited for an
  initial consideration of £45.3m

• SIG trading performance for the half year ahead of expectations with
  profit before tax and amortisation of goodwill expected to be more than 30%
  higher than the prior year comparable period

Acquisition

SIG has acquired the privately owned LS Group Limited (LS), as an expansion of
its existing commercial interiors activities in the UK.

LS is the UK's leading producer of high-performance purpose-made interior door
sets, chiefly for non residential buildings, including offices, hotels,
hospitals, schools and public buildings. It operates from three sites,
Barnstaple, Langley Mill and Sheffield, and employs 560 people.

In the year ended 2 April 2005, LS achieved sales of £37m, operating profit
before interest and goodwill of £5.5m, profit before tax of £3.7m and had net
assets of £15.3m at that date. SIG is paying £45.3m (in cash out of existing
resources) including assumed borrowings, for 93.5% of the ordinary share
capital. Existing LS management are retaining the remaining 6.5% of the equity,
which will be purchased at a later date, at a price subject to a minimum of
£1.7m and a maximum of £5.2m, dependent upon future profit performance.

David Williams, Chief Executive of SIG plc commented 'LS provides an important
extension to our existing commercial interiors product range. It concentrates on
the growth market of specialist door sets, especially where fire, acoustic and
high security performance requirements exist.

LS makes an excellent strategic fit, and there is a high level of commonality
with our existing activities, including customers, projects and production
processes. SIG has been a successful producer of specialist doors for over 10
years and the acquisition of LS takes SIG firmly into the top of the first
division, and strengthens our position and our product range in the growing
non-residential construction sector. We look forward to working with the
existing management to ensure the continued successful development of the
business.'

Trading Update

Continued like for like sales growth together with the added impact of recent
acquisitions will enable the Group to report a particularly strong trading
performance, ahead of expectations for the first half of 2005. Profit before tax
and amortisation of goodwill is expected to be in excess of 30% higher than the
£30.8 million reported for the first half of 2004.

Note: All of the financial figures for 2004 and 2005 are on a UK GAAP basis. The
interim results will be prepared under IFRS and will be released on 14 September
2005. An analysis of the key impacts of IFRS was included on page 27 of the SIG
plc Statutory Accounts for the year ended 31 December 2004.

Sales for the half year are expected to exceed £760m, representing an increase
of approximately £111m (17%) on the £649m reported for the first 6 months of
2004.

Like for like sales growth, i.e. after eliminating the impact of acquisitions
made since 1 January 2004, is approximately 10%. Whilst there has been some
modest price inflation, as anticipated, the impact on profits has been far less
marked than in 2004. The impact of foreign currency exchange rate movements on
profits compared with the first half of 2004 is minimal.

The operating profit margin has increased in all three geographic reporting
regions in the first 6 months of 2005, compared with the corresponding period in
2004.

UK and Republic of Ireland (c. 65% of Group sales)

Sales in our largest geographic region have increased by approximately 20% in
the first 6 months of 2005, to in excess of £510m (2004: £423m).

The like for like sales increase is approximately 10%.

Against the background of strong levels of activity and demand from the
construction and building industries, like for like sales grew in all business
streams. Within the overall mix of market demand, new build activity levels in
the non-residential sectors have been particularly good and this has benefited
the Group during the period. Government spending on health and education has
boosted demand.

Insulation, roofing, commercial interiors and safety and construction products
all made good progress compared with prior year.

Mainland Europe (c. 30% of Group sales)

Sales overall in Mainland Europe are up by approximately 10% in Sterling, and by
in excess of 6% on a like for like constant currency basis.

Despite weak demand in Germany, sales increased, including the impact of the new
branches opened in the second half of 2004.

In France sales grew strongly in generally good market conditions, whilst in
Poland our sales continued to grow despite weaker market demand than the same
prior year period.

In Benelux, market conditions improved slightly compared with 2004, and sales
have increased.

USA (c. 5% of Group sales)

Against the background of some improvement in market demand, sales are ahead of
the prior year on a like for like constant currency basis, and in Sterling. The
excellent progress made in 2004 throughout the US operations has continued into
2005.

Acquisitions

Including the acquisition of LS announced today, so far this year we have
completed 9 acquisitions, with combined annualised sales of £72m.

Total combined consideration including debt acquired to date for these 9
acquisitions is £60.3m.

Outlook

The trading performance in the second half of 2004 was exceptionally strong and
was boosted by acquisitions made in that year, and by the unseasonably strong
trading in November and December. For these reasons, year on year comparators
become far more demanding in the second half year than in the first half.

Conditions in the main markets in which the Group operates are not expected to
be materially different in the second half of the year compared with the first
six months.

On this basis, and taking into consideration the anticipated impact from the
recently completed acquisitions, the Board is confident that further progress
will be made. Results for the full year are expected to be in excess of the
current market consensus expectations for 2005.

Analyst Conference Call

There will be an Analyst conference call at 8.15 am today. The dial in number is
020 7162 0091 and the password is SIG.

Enquiries:
David Williams Chief Executive SIG plc 0114 285 6300
Gareth Davies Finance Director SIG plc 0114 285 6300
Faeth Birch / Gordon Simpson Finsbury 020 7251 3801

An interview with David Williams, Chief Executive, will be available today in
video, audio and transcript at www.sigplc.co.uk and on www.cantos.com.



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