AGM Statement

Yule Catto & Co PLC
23 May 2001



                             YULE CATTO & CO PLC


                                Trading Update




At today's Annual General Meeting of Yule Catto & Co. plc ('Yule Catto'), the
international producer of speciality chemicals, Anthony Richmond Watson,
Chairman, made the following comments:


'The first year of the new Millennium was challenging for many of our
activities, particularly in the second half when unprecedented rises in raw
material prices severely depressed margins. However, while external factors
proved difficult, we can look back on a year in which much was achieved in
realigning our businesses into a focused speciality chemical group.


'Throughout what has been a period of significant change we have, as always,
received full support and effort from all our employees world-wide. I should
like to publicly thank them on behalf of shareholders and the board for their
contribution over the past year.


'The major item of restructuring that has been accomplished is the withdrawal
from our Building Products activities. This successful division had been built
up over a number of years during a period when it was difficult to expand our
chemical operations at sensible cost.


'In the final quarter of 1999 we were fortunate to acquire full ownership of
the synthetic latex operations of Synthomer and it was judged appropriate to
dispose of what had then become non-core assets in the building products
sector.


'I am pleased to report that this exercise was completed in a highly
satisfactory fashion with the cash inflow exceeding our original expectations.
The final disposal took place this month with the sale of Unilock Ltd to its
management leaving our activities now wholly concentrated upon the manufacture
and sale of speciality chemicals.


'As I have already said, the second half of last year was challenging, so I am
pleased to say that the first quarter of 2001 has shown a good improvement
over the last three months of 2000.


'Our Polymer Chemicals businesses have achieved much needed increases in
selling prices and the outlook for raw materials from the second quarter
onwards is more promising. With demand remaining solid, these operations
should benefit from margins being rebuilt as the year unfolds.




'In Pharma and Fine Chemicals we continue to see pressure on the pricing of
generic products holding back profit development, but the product base is
expanding and there is optimism that we shall benefit in the medium term as
patents expire in the United States. The supply problems in our flavour and
fragrance activities are also largely behind us and we look forward to a
better performance.


'The Performance Chemicals companies are benefiting from the introduction of
new products, good market demand and an aggressive global marketing strategy.
We also no longer have the drag of the losses that were accruing at Holliday
Dyes & Chemicals and altogether we expect to see solid results from these
activities.


'In making these comments on the outlook for Yule Catto, I am wary of the
current uncertainties surrounding world economies which could hold back the
rate of profit improvement in the short term. What I am sure of is that we
took decisive action during the course of last year to reposition our group
and that, coupled with the dedication of our management teams, I am certain
will deliver good performance for our shareholders.'


                                                                   23 May 2001

ENQUIRIES:

Yule Catto plc                                                Tel: [phone]
Alex Walker, Chief Executive
Sean Cummins, Finance Director

College Hill                                                 Tel: [phone]
Gareth David                                Email: [e-mail]
Lisa Pearson                                Email: [e-mail]