Trading Statement

SIG PLC
11 July 2003

                              Trading Statement

                                11 July 2003

SIG plc, the leading supplier of Insulation, Roofing and Commercial Interiors
products, issues the following trading update for the six months to 30 June
2003, in advance of the Interim Results which will be announced on Wednesday 3
September 2003.

The Group has made encouraging progress and expects to report profits ahead of
first half 2002 at both operating and pre tax levels.  All businesses traded
profitably with the exception of Poland, where a small loss was incurred.

Total sales for the first six months are in excess of £610m, representing an
increase of approximately £74m (13%) on the first half of 2002.  £15m of the
increase is attributed to positive currency movement.  On a like for like basis,
the increase over prior year was 9%.  Changes in the sales mix caused a small
reduction in the operating profit margin compared with prior year.

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

Total sales in the UK and Republic of Ireland grew by approximately 16%, and by
almost 10% on a like for like basis.  Sales are up in all business streams other
than Commercial Interiors, where a decline was anticipated due to continued
adverse market conditions, particularly  for higher margin office interior
products.

Insulation sales to the building and construction sector are strongly ahead as
the effects of recent changes to legislation continue to feed through.  Demand
in the smaller industrial insulation market remained sluggish with new project
work continuing at a low level of activity.  Like for like sales growth in
Roofing has been supplemented by the acquisitions made in 2002, all of which
have performed well.  Increased sales have also been achieved in the two
development businesses in the UK, i.e. Safety Products and Construction
Specialities.

Mainland Europe (c.30% of Group Sales)

Overall, sales in mainland Europe were up approximately 4% in local currency.
The positive effect of the movement in currency, compared with 2002, increases
this growth to over 14% in sterling.

In Germany, against the background of a further decline in construction
activity, sales increased as a result of actions taken last year to strengthen
our position and despite an overall reduction in the number of branches towards
the end of 2002.  Good progress was made in France and the Netherlands, partly
due to new branch openings.  Market conditions in Poland, which represents less
than 1% of Group sales, continued to be very difficult and sales declined.

USA (c.5% of Group Sales)

Sales declined by approximately 3% in local currency as conditions in the core
petrochemical markets remained depressed in the period.  This decline was
compounded by the negative effect of currency movement, with sales down over 12%
in sterling.

Acquisitions

The Group has made two small bolt-on acquisitions during the period, one in the
UK and one in France.  These are both performing in line with expectations and
are integrating well into the core operations.

Outlook

Market conditions in the second half are expected to remain broadly similar to
the first six months in all of the main areas in which the Group operates.

The second half year traditionally represents a higher proportion of sales and
profits  than the first half and, whilst this trend is anticipated again in
2003, the seasonality is not expected to be as marked as in 2002.

Whilst it would be imprudent to ignore ongoing macro economic uncertainties, the
Group is encouraged by performance in the first half and expects to make further
progress.

Corporate Brokers

The Board is pleased to announce the appointment of Panmure, replacing
ING-Barings with immediate effect, as joint broker to SIG plc alongside Cazenove
& Co Ltd.

Enquiries:
David Williams, Chief Executive               SIG plc        0114 285 6300

Gareth Davies, Finance Director
Faeth Birch /Gordon Simpson                   Finsbury       020 7251 3801


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

•     A conference call to discuss the trading update will be held at 
      8.30 am today.  The dial in number is [phone] and the call  
      Chairman is David Williams.



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