Trading Statement

Lupus Capital PLC
19 July 2006

                              Lupus Trading Update







Lupus is pleased to report that the company is progressing very well in all
areas.



For the first half year to June 30, 2006 Gall Thomson had record order books,
produced growing profits over last year and continues to deliver commendable
cash generation. Its market remains buoyant.



The £84 million acquisition of Schlegel, a leader in the manufacture and
marketing of door and window seals, was completed on April 4, 2006 and in the
three months of our half year the integration has proceeded smoothly.



A number of fresh operational initiatives have been introduced such as the
reassignment of production between plants, efficiency and scrap initiatives and
additional workforce recruitment at lower cost levels.  In sales and marketing
new customers have been won,  exports to Eastern Europe have increased,  prices
have been raised to reflect higher raw material costs and there has a been a
refocusing on higher margin customers and products.  Under finance, working
capital controls have been emphasised and financial analysis has initiated
targets to recoup transportation and production costs.  The incumbent management
team is enthusiastic and motivated to continue to develop the business.



Sales are up over 10 per cent year on year with the US and Germany particularly
strong thanks to new products, market share gains and a good overall global
market both in new build and refurbishment.



We expect profit growth from these increased sales, productivity and cost
controls, leading to excellent cash generation after capital expenditure and
working capital requirements.



Raw Material input costs continue to rise - these are being passed on to our
customers.  The weakness of the dollar has had only a limited impact on the
translation of profits.



We anticipate that Lupus will produce double digit earnings per share growth due
firstly to the performance of our strong existing business, secondly the
well-priced acquisition and thirdly the reinvigorated Schlegel providing profit
increases over the previous years.



The future looks stimulating and exciting.



Enquiries to:               Greg Hutchings                  020 7976 8000
                            Alan Frame                      020 7405 7777



July 19 2006




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