Trading Statement

SIG PLC
17 July 2001



                                PRESS RELEASE

                                TRADING UPDATE

                                17th July 2001


This trading update is published ahead of the interim announcement of the
Group's results for the six months to 30 June 2001, due on 3 September 2001.

Highlights
*   Continued market out-performance
*   Growth in line with expectations
*   Strong balance sheet and cash flow

In both our full year and AGM statements, we anticipated that the trading
environment would be challenging in the current year and this has indeed been
the case. However, Group sales and profits are ahead of the comparable period
last year and we are confident that we have out-performed our markets in all
our main regions.



UK

In the UK sales and profits have increased in all our principal activities
with continuing good performance in insulation, ceilings and partitioning and
a particularly strong result in roofing.

Europe

In Europe our businesses have continued to make progress. Demand in France and
the Netherlands has remained strong and both our ceilings and industrial
insulation divisions have performed well. This has more than offset a
disappointing performance from our embryonic business in Poland.

We anticipated a further decline in the German market and structured our
German business to optimise performance in this adverse environment. While
operating profits are below last year's level, our business has traded well
maintaining sales and significantly out-performing the market.

RoW

Our industrial insulation distribution business in the United States continued
to improve on the recovery made in 2000.



We further strengthened our UK market position making 3 small bolt-on
acquisitions for a total consideration of £10.4 million.

Balance sheet, cash flow and interest cover remain strong with gearing at a
similar level to the year end.

(ENDS)

Notes to Editors:

SIG plc is a specialist multi-site distributor serving construction and
industrial markets. It specialises in the distribution of insulation,
ceilings, partitioning and roofing products and has market leading positions
in the UK, France, Holland, Germany and regionally in the USA.

In the year to 31 December 2000 SIG reported pre-tax profits of £48.2 million
on sales of £932 million.

Enquiries:
Bill Forrester, Chief Executive                  SIG plc     0114 285 6300
David Williams, Deputy Chief Executive
Frank Prust, Finance Director
Rupert Younger/ Faeth Finnemore                  Finsbury    020 7251 3801