Trading Statement

SIG PLC
14 January 2002



                                Trading Update
                              14th January 2002

SIG, the international specialist supplier to the construction, building and
industrial markets, issues the following update in advance of its preliminary
results for the 12 months ending 31st December 2001, which will be announced
on 11th March 2002.

Summary Headlines


-             Sales and profits significantly ahead of prior year

-             Results will be within market expectations for the year

-             Sales grew strongly - up over 11% overall compared with 2000,
              taking Group sales to over £1bn for the first time

-             Trading cash flow remains strong and gearing and interest cover
              are healthy

-             Acquisitions made in 2001 are performing according to plan and
              are integrating well into the Group.

-             Market coverage improved.  The number of trading sites
              increased by 33 compared with December 2000.

UK and Eire

Sales in this region, which represent approximately 60% of Group turnover,
grew by over 14%, representing an increase of £80m compared to 2000.

Acquisitions made in 2001 contributed sales of £34m.  The £46m organic sales
growth in the UK and Eire represents an increase of 8%.  Excellent progress
was made in each of the three key product sectors, with both sales and
operating profits up in Insulation, Roofing and Commercial Interiors (formerly
described as Ceilings and Partitions).

Europe

Sales in Europe account for some 30% of Group turnover.  Increases were
achieved in Germany, France and the Netherlands, whilst in Poland, which
represents less than 2% of the Group, sales declined.  Operating profits were
lower in 2001 compared with 2000.  Continued progress in France and the
Netherlands was countered by reduced profits in Germany and a loss in Poland.

Throughout 2001 we have stated that profits in Germany would be at  a  reduced
level compared to 2000 due to adverse market conditions.  The results  bear
this out and are  in line with our expectations.

Across Europe, continued progress has been made in both the Insulation and
Commercial Interiors markets.

USA

Sales in the USA represent less than 10% of Group turnover and are made in the
industrial insulation sectors, especially the petro-chem and heating and
ventilation markets.  Good progress has been made, with an improvement in
sales and profits over 2000.

Outlook

The Group holds a leading position in markets which are believed to offer long
term growth prospects.  The geographic spread and the diversity of markets and
customers served create resilience.  These factors, together with the proven
ability of the operational management and the strength of the balance sheet,
give confidence that the Company will continue to make further progress.

Enquiries:


David Williams, Chief Executive             SIG plc       0114 285 6306
Faeth Finnemore / Gordon Simpson            Finsbury      020 7251 3801


-           Further information is available from SIG's website
            www.sigplc.co.uk

-           Photographs are available for media download from
            www.sigplc.co.uk/news

-           A conference call to discuss the trading update will be held at
            9.30 am today.  The dial in number is 020 8240 8243 and the
            reference to quote is 'David Williams'