Trading Statement

SIG PLC
12 January 2004

                                  TRADING UPDATE

                                12th January 2004

SIG plc, the leading supplier of insulation, roofing and commercial interiors
products, issues the following trading update in advance of the preliminary
results for the twelve months to 31 December 2003 which will be announced on
Tuesday 9 March 2004.

Key Points

• The Group has made encouraging progress in 2003 and expects to report
  profits ahead of both 2002 and market expectations at both operating and 
  pre-tax levels.

• Record sales achieved in excess of £1,260m, an increase of 9% on prior
  year.

• All businesses and countries traded profitably with the exception of
  our small Polish business.

• Improvements in the management of working capital and the strong
  operational cash flow enabled gearing to be reduced substantially compared 
  with prior year.

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

Total sales in our largest geographic region increased by approximately 10% over
2002 and operating profits were increased. Sales increased in all business
streams other than Commercial Interiors, where a small reduction occurred.
Insulation sales continued to benefit from the upswing in market demand driven
by the recently revised Building Regulations. In Roofing, increased geographic
coverage and new product introductions enabled market share to be gained. Sales
were also increased over prior year in the Safety Products and the Construction
Specialities divisions.

Mainland Europe (c.30% of Group Sales)

Sales in mainland Europe were up approximately 2% in local currency, and over
10% in sterling. Increased sales were achieved in France, the Netherlands and
Poland in local currency. In Germany, sales were held in local currency despite
reduced market demand and the loss of sales in 2003 resulting from the closure
of six loss making branches at the end of 2002. Operating profits have increased
in mainland Europe both in local currencies and in sterling.

USA (c.5% of Group Sales)

The small reduction in sales in local currency (c.2%) was compounded by the
weakened dollar and the sales decline in sterling was approximately 10% compared
with 2002. Whilst costs have been cut, the reduced volume caused by weak demand
in the petro-chem industries resulted in a decline in operating profit in both
dollars and sterling.

Acquisitions

During the year, the Group completed five small acquisitions. Each has fitted
well into the existing operations and is performing in line with expectations.

Outlook

Overall conditions in the core building and construction markets in the UK and
Republic of Ireland are expected to remain broadly positive. Whilst demand in
the premium commercial interiors sector is not expected to improve in the near
term, further benefit is anticipated from the increasing impact of both thermal
and acoustic Building Regulations. The Group continues to view the Roofing
market in the UK positively.

Conditions overall in mainland Europe are expected to remain broadly similar to
2003, with the possibility of some improvement in Poland.

In the USA, some improvement in demand from the core industrial and petro-chem
markets is expected.

Against the background of these mixed conditions, the Group is focused on
continued expansion and growth. The strength of the balance sheet will enable
the Group to take advantage of new opportunities that may arise. Investments are
planned during 2004 to increase the number of trading sites and to increase
significantly the capacity in several existing locations. Whilst this expansion
is expected to have only a modest impact on profits in 2004, it will further
strengthen our ability to meet customer requirements and continue the growth of
the Company going forward.

Enquiries:
David Williams, Chief Executive            SIG plc         0114 285 6306
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 9.00 am
    today. The dial in number is [phone] and the call Chairman is David
    Williams.


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