Interim Results

Fairey Group PLC
11 September 2000

                                       
Contact: John Poulter, Chief           Tel: [phone](am)
         Executive
         Fairey Group                  Tel: [phone]
                                       
         Richard Mountain              
         Financial Dynamics            Tel: [phone] (am)


                                       
                               FAIREY GROUP plc
                                       
                                INTERIM RESULTS


Overview
£m                           H1 2000           H1 1999              Change
                                                                          
Sales                          164.2             129.4                +27%
Operating Profit                20.7              15.5                +34%
Profit before Tax/              18.3              13.0                +41%

Exceptionals/Goodwill
Normalised e.p.s.              13.2p              9.5p                +39%
Dividend                       3.55p             3.35p                + 6%



Commenting on the results, Chief Executive John Poulter said:

'These results demonstrate the underlying strength of our businesses.  We  are
confident  that 2000 will be a year of considerable advancement, augmented  by
the opportunities presented with the acquisition of the Spectris companies.'


As  projected in statements earlier in the year, the first half of 2000 showed
a  decisive  upturn in sales and profits as the group benefited from  strongly
improving  market  conditions and demand for semiconductor and  optical  fibre
equipment  and  as Asia Pacific and US industrial markets recovered  from  the
downturn of 1998/9.


Results

Compared with the equivalent period in the prior year group sales, profits and
earnings all rose strongly.  Although the headline sales were augmented by the
inclusion  of Servomex, acquired in mid-1999, the underlying rate  of  organic
sales  growth  was  18%.  On the same basis operating profit  was  31%  ahead.
Asian  markets  recovered  strongly and there was substantial  improvement  in
North  America.   Continental Europe showed more modest progress  and  the  UK
remained uninspiring.

The  group  invested  in  enhanced  sales  and  marketing  activity  ahead  of
anticipated  sales  growth,  which had an effect on  profits,  although  gross
margins were maintained at the overall level of the prior year.

Euro  weakness against the main operating currencies of the group (the  dollar
and  the  pound)  impacted  disadvantageously on  gross  margins,  but  dollar
strength  towards  the  end of the period was helpful in  the  translation  of
profits into sterling.

Net borrowings at the half year were £8.5m which were significantly reduced by
the  rights issue proceeds of £55.6m utilised in early July to part  fund  the
acquisition of Spectris AG.

Conversion  of  operating profit into operating cash was  disappointing  as  a
result  of an £11m increase in trade working capital owing to a strong  second
quarter  sales  performance and an inventory build to accommodate  the  rising
sales  trend.   Cash conversion for the full year is anticipated  to  be  much
closer to the 100% target level achieved in 1999.

The  Board intends to pay an interim dividend of 3.55p, a 6% increase  on  the
previous  year.     The  dividend  will  be  paid  on  15  November,  2000  to
shareholders on the register at 20 October 2000.

Operating Review

In  the  electronic controls segment, the businesses saw sales ahead  by  23%.
All  companies  made positive progress.  Arcom increased  sales  by  over  50%
compared  with  the prior year, successfully converting prospects  for  remote
data  communications  products, referred to in previous reports,  into  sales.
Microscan  and Red Lion Controls took advantage of recovery in the market  for
factory automation and together grew sales by 11%.

In   the  process  instrumentation  segment,  organic  growth  was  21%.   The
semiconductor  equipment  units experienced rising order  intake  through  the
period  as  the  recovery  in  the  semiconductor  industry  impacted  on  the
relatively  late  cycle  products of Luxtron and Particle  Measuring  Systems.
Order  books  increased substantially during the second quarter.  With  strong
activity   continuing  and  launches  of  new  products  resulting  from   the
development  investments  made  during the  downturn,  the  portents  for  the
remainder of the year are good.

Fusion  and Beta LaserMike enjoyed the resurgence in the optical fibre  market
and  although this growth rate may slacken in the second half as a  result  of
phasing  of customer projects into 2001, their other markets are also growing.
The  other instrumentation businesses, with one exception, made good  progress
and moved back to the levels of growth seen before the Asian crisis.  At Loma,
downward cost pressures in the food industry and ownership changes at  several
competitors  have  caused profits to be eroded in an  environment  of  falling
prices.   Some  recovery  from this erosion is based on  pending  new  product
introductions and closer customer service relationships globally  as  well  as
internal cost reduction.

Servomex incurred one-off costs associated with outsourcing much of its  basic
manufacturing.  The oil and gas equipment market has been slow to recover  but
enquiry  levels and activity are encouraging as the company benefits  from  an
improved structure, market clarity and new product introductions.

We   expect  margins  in  the  process  instrumentation  segment  to  increase
significantly in the second half.

In  the  filtration systems segment, Fairey Arlon increased sales and  profits
despite competitive markets for construction equipment and Fairey Microfiltrex
gained  important industrial business, especially in the United States,  which
compensated  for  softer  demand  from its  aerospace  customers.    The  same
softness  was felt at Fairey Industrial Ceramics in requirements for aerospace
casting  cores.  There was a sharp reduction in sales at Fairey Nuclear  where
the  decline of recent years is accelerating.  This was the primary  cause  of
the  reversal in the segment.  Nevertheless, we expect the companies (with the
exception of Fairey Nuclear) to make progress in the second half.

Acquisitions and Disposals

At  the  end  of  June,  Imaging Technology was  sold  for  just  under  £10m.
Although profitable, the company - the group's smallest in the electronics and
instrumentation segments - is exposed to a market where technological advances
are driving ever higher product performance at reducing unit prices.  The need
for  continuing  high  levels  of development investment  pointed  to  a  more
difficult environment for a minor participant in the industry.

Immediately  after  the half year end the group completed the  acquisition  of
Spectris AG in Germany for approximately £171m, funded to the extent of £55.6m
by  a rights issue. With 1999 sales of £220m,  this is the largest acquisition
in  the  group's history and consists of four main companies based in Denmark,
Germany  and  Sweden.  Disposal of certain peripheral businesses amounting  to
about 10% of the acquired sales is progressing well.  The Spectris head office
has  been eliminated but for a few support staff and a complex and inefficient
sales  matrix  structure  is  being replaced  by  direct  alignment  of  sales
activities to the operating companies.  The savings that flow from  these  and
other  actions will be realised progressively during the next eighteen months,
but  the group target is for cost savings of £6-£8m from reorganisation  costs
estimated at £12-£15m.  The trading in these businesses has historically  been
weighted  towards  the  latter part of the year  and  the  group  expects  the
acquisition  to  be earnings enhancing, before amortisation  of  goodwill  and
exceptional costs, in the second half.  The businesses are strongly positioned
and order intakes are running ahead of 1999.

The  cash  requirements for reorganisation and exceptional capital expenditure
amounting to £8m are expected to be covered by the Spectris disposals.

Until the end of 2001, it is the intention to show Spectris companies' results
separately from the rest of the group.

Outlook

Given  the  overall  strength  of demand and the expectation  of  an  earnings
enhancing  contribution  from  the Spectris businesses,  Fairey  is  taking  a
positive  view  of  the  second  half  and,  subject  always  to  the  proviso
surrounding  economic events, the group is well positioned to deliver  further
encouraging performance.




A table of results is attached.

Copies of this notice are available to the public from the registered office:

Station Road, Egham, Surrey TW20 9NP

Group Results (unaudited)
                                 2000               1999                1999
                            Half year          Half year           Full year
                                                                            
                       £'000    £'000     £'000    £'000     £'000     £'000
Sales turnover                                                              
Continuing operations         158,332            124,952             254,912
Acquisitions                        -                  -              11,059
Operations disposed             5,899              4,416               9,304
                               ______             ______             _______
                                                                            
                              164,231            129,368             275,275
                               ______             ______             _______
                                                                            
Operating profit before goodwill                                            
amortisation
Continuing operations 19,968             15,477             34,094          
Acquisitions               -                  -                812          
Operations disposed      686                 35                419          
                      ______             ______             ______          
                               20,654             15,512              35,325
Amortisation of                                                             
intangible assets               (513)                  -               (577)
                              _______            _______              ______
                                                                            
Total operating                20,141             15,512              34,748
profit
Exceptional loss                (914)                  -                   -
(note)
                              _______            _______             _______
                                                                            
                               19,227             15,512              34,748
                                                                            
Net Interest payable            2,368              2,482               5,210
                              _______            _______             _______
Profit before                                                               
taxation                       16,859             13,030              29,538
                                                                            
Taxation  -    UK                 765              1,879             (7,559)
          -    Overseas         5,031              2,030               5,400
                              _______            _______             _______
                                                                            
Profit after taxation          11,063              9,121              31,697
                                                                            
Dividends                       3,903              3,160              10,373
                              _______            _______             _______
                                                                            
Retained profit                 7,160              5,961              21,324
                              _______            _______             _______
                                                                            
Average number of shares in      96.7             93.8                  94.0
           issue (millions)
                                                                            
Earnings per ordinary share     11.2p             9.5p                 32.8p
 Fully diluted earnings per     11.1p             9.5p                 32.8p
                      share
    Normalised earnings per     13.2p             9.5p                 22.4p
             ordinary share
                                                                            
     Dividends per ordinary     3.55p            3.35p                 11.0p
                      share

Note:
The exceptional loss comprises a loss on sale of Imaging Technology Inc of
£2,802,000 including goodwill previously written off, partly offset by a gain
on a contract for the purchase of Deutschemarks amounting to £1,888,000.

Normalised  earnings  per  share  excludes  the  after  tax  loss  on  sale  
of discontinued  operations,  the exceptional currency  gain and amortisation
of goodwill.

The earnings per share calculations take account of the rights issue during
the period.

The  financial information above does not constitute statutory accounts for 
the company.  The results for 1999 are not the company's statutory accounts 
but  an abridged version of the full accounts which have received an
unqualified  report by  the auditors and have been filed with the Registrar of
Companies.  The  half year  figures  are  unaudited. Copies  of  this  report 
have  been  sent to shareholders and are available to the public at the
company's office.


Business Sector Analysis

                                           2000         1999          1999
                                      Half year    Half year     Full year
                                          £'000        £'000         £'000
                                                                          
Sales turnover
                                                                          
Electronic Controls                      27,479       22,793        44,321
                                                                          
Process Instrumentation                 112,641       83,651       185,258
                                                                          
Filtration Systems                       18,212       18,508        36,392
                                                                          
                                                            
                                                            
                                        158,332      124,952       265,971
                                                                          
Operations disposed                       5,899        4,416         9,304
                                                                          
                                               
                                        164,231      129,368       275,275
                                                                          

                                                                          
Operating profit
                                                                          
Electronic Controls                       4,498        3,429         6,685
                                                                          
Process Instrumentation                  12,482        8,512        21,155
                                                                          
Filtration Systems                        2,988        3,536         7,066
                                                                          
                                                                          
                                         19,968       15,477        34,906
                                                                          
Operations disposed                         686           35           419
                                                                          
                                                                          
                                         20,654       15,512        35,325
                                                                          
Amortisation of intangible assets         (513)            -         (577)
                                                                          
                                                                          
                                         20,141       15,512        34,748
                                                                          
                                                                          


The  amortisation of intangibles relates to the acquisition  of  the  Servomex
companies  whose  results  are  included within  the  Process  Instrumentation
sector.


Balance Sheet Summary (unaudited)


                                              2000       1999         1999
                                            1 July        31        3 July
                                             £'000   December        £'000
                                                        £'000
                                                                          
Intangible assets                           19,775      20,327      19,400
Fixed assets                                33,736      34,966      37,524
Investments                                  6,474       5,574       4,815
Investments - held for disposal                  -           -       4,000
Working capital                             65,847      51,710      52,799
Tax payable                               (12,064)    (11,975)    (20,807)
Dividends payable                          (3,917)     (7,219)     (3,164)
Provisions                                 (3,095)     (3,026)     (1,724)
                                                                          
                                                                          
                                           106,756      90,357      92,843
Net borrowing                              (8,453)    (64,315)    (82,978)
                                                                          
                                                                          
Net assets                                  98,303      26,042       9,865
                                                                          
                                                                          
                                                                          
                                                                          
Share capital                                5,582       4,784       4,778
                                                                          
Reserves                                    92,721      21,258       5,087
                                                                          
                                                                          
Equity shareholders' funds                  98,303      26,042       9,865
                                                                          
                                                                          
                                                                          
Reconciliation of movements in shareholders' funds                        
                                                                          
Retained profit                              7,160      21,324       5,961
                                                                          
Foreign exchange adjustments                  (31)       (361)       (682)
New share capital subscribed                55,586       3,791       3,298
Goodwill written back on disposal            9,546           -           -
                                                                          
                                                                          
Net increase/(decrease)                     72,261      24,754       8,577
                                                                          
Opening shareholders' funds                 26,042       1,288       1,288
                                                                          
                                                                          
Closing shareholders' funds                 98,303      26,042       9,865
                                                                          
                                                                          

In  accordance  with FRS 10 goodwill on acquisitions from 1 January  1998  has
been capitalised and is being amortised over its useful economic life.


Cash Flow Summary (unaudited)

                                            2000       1999           1999
                                       Half year  Half year      Full year
                                           £'000      £'000          £'000
                                                                          
Operating activities                      13,329     16,775         38,258
                                                                          
Capital expenditure                      (2,606)    (2,666)        (5,382)
                                                                          
Fixed asset disposals                        256        157          1,688
                                                                          
Net interest paid                        (2,301)    (2,482)        (5,305)
                                                                          
Tax paid                                 (5,631)    (1,285)        (1,540)
                                                                          
                                                                          
Free cash flow                             3,047     10,499         27,719
Dividends paid                           (7,205)    (6,828)        (9,987)
Share issues                              55,586        224            634
Purchase of fixed asset                    (900)          -          (759)
investments
Purchase of subsidiaries                 (1,485)   (22,263)       (23,151)
Sale of subsidiaries                       9,592          -          4,877
Exchange adjustment                      (2,773)    (2,888)        (1,926)
                                                                          
                                                           
                                                                          
Net cash movement                         55,862   (21,256)        (2,593)
                                                                          
                                                           

                                                                          
Operating activities
     Operating profit                     20,141     15,512         34,748
     Depreciation/amortisation             4,087      3,266          7,526
     Increase in working capital        (10,899)    (2,003)        (4,016)
                                                                          
                                                                          
                                          13,329     16,775         38,258