Fourth Quarter Trading Update

Cookson Group PLC
10 January 2006

10 January 2006



COOKSON GROUP plc - FOURTH QUARTER TRADING UPDATE

Cookson Group plc ('Cookson'), the leading materials science company, is issuing
this trading update ahead of its full year results for 2005, scheduled for
announcement on 14 March 2006.

Fourth Quarter Highlights:

  • Better than expected trading performance from the Ceramics and Electronics
    divisions; Precious Metals division's weak trading continued

  • Disposal proceeds target of £100 million reached ahead of schedule

  • Recently announced disposals:

       -   Disposal of Laminates business for US$91 million (£53 million*)
       -   Disposal of SCS for US$55 million (£32 million*)



Commenting on the fourth quarter, Nick Salmon, Cookson's Chief Executive, said:

'We continue to make good progress in implementing the strategic plan announced
last January.  Fourth quarter trading has been ahead of the expectations
indicated in our 4 November Trading Update, due to strong performances from our
two largest divisions, Ceramics and Electronics.  The full year results will
show that these divisions, post the disposals, have made substantial progress
towards achieving the targeted margin levels. With the two disposals signed in
December we have now reached our disposal target of £100 million.'

Trading

The Ceramics division performed significantly ahead of expectations in the
fourth quarter with steel volumes in Europe and the USA better than previously
anticipated and a robust performance from the Glass sector.  Trading profit for
the fourth quarter is now expected to be higher than that recorded for the third
quarter.  Trading in our Electronics division was also ahead of expectations due
to a strong performance from the Assembly Materials sector, benefiting from the
continued pick up in the lead free solder market. The Precious Metals division
continued to experience weak market conditions, most particularly in the UK,
with a weaker seasonal up-tick than in prior years.

The Group now expects its overall performance for 2005 to be ahead of its
previous expectations.

Cash generation for the fourth quarter has been satisfactory, although the year
end net debt level has been negatively impacted by the strengthening of the US
dollar. Overall net debt at 31 December 2005 is expected to be slightly below
£300 million.

This includes the SCS disposal proceeds of £31.4 million received at the year
end but has been negatively impacted by an approximately £32 million exchange
rate movement effect in the year.

Restructuring

During the fourth quarter several new restructuring initiatives were launched,
targeted at reducing operating expenses and exiting certain commodity
activities.   The related charges will be booked in 2005, taking the total
restructuring charge in the year towards £20 million. The cash spend in 2005
relating to these initiatives, plus those launched in previous years, is also
expected to be approximately £20 million.

Disposals

In January 2005, Cookson announced a target of raising over £100 million from
disposal proceeds by the end of 2006.  The disposal programme is part of
Cookson's strategy of focussing on higher technology products and exiting
commodity activities, as well as achieving progressive debt reduction.

On 15 December 2005, the disposal of Cookson's Laminates business for US$91
million (£53 million*) was announced which is conditional upon clearance from
the competition authorities in Europe. Due to some delays by the acquirer in
submitting the merger filings, this clearance is now not expected before the end
of March 2006.  In addition, on 3 January 2006 Cookson announced that it had
disposed of its SCS business on 31 December 2005 for US$55.5 million (£32
million*).  On completion of the Laminates transaction and including the cash
proceeds from property and other disposals in the twelve month period to 31
December 2005, Cookson will have generated disposal proceeds of over £100
million.

Laminates and SCS will be reported as 'discontinued operations' in the 2005
financial statements.

Pension Deficit

The reduction in December in the long term corporate bond rate used in the
calculation of UK pension fund liabilities means the pension deficit will
increase over the amount stated in the Interim Results. A full revaluation of
the UK pension scheme is not yet available but we expect the increase in the
deficit between 1 July and 31 December 2005 to be in the order of £20 million.

Other

The Company's Extraordinary General Meeting on 12 January will be seeking
shareholder approval for changes to its Articles of Association as part of the
planned termination of the registration of its ordinary shares with the USA
Securities and Exchange Commission and to effect a reduction of its share
capital.

Cookson expects to announce the preliminary results for the year ended 31
December 2005 on 14 March 2006.

Note

* Translated at an exchange rate of £1 to US$1.718.


Shareholder/analyst enquiries:
Nick Salmon, Chief Executive                         Cookson Group plc
Mike Butterworth, Group Finance Director             Tel: + 44 (0)20 7061 6500
Isabel Vilela, Investor Relations Manager

Media enquiries:
John Olsen                                           Hogarth Partnership
                                                     Tel: [phone]


About Cookson Group plc

Cookson Group plc is a leading materials science company which provides
materials, processes and services to customers worldwide. The Group's operations
are formed into three divisions - Ceramics, Electronics and Precious Metals.

The Ceramics division is the world leader in the supply of advanced flow control
and refractory products and systems to the iron and steel industry and is also a
leading supplier of specialist ceramics products and refractory linings to the
steel, glass, foundry and other industries.

The Electronics division is a leading supplier of materials and services to
fabricators and assemblers of printed circuit boards and semiconductor packaging
and to industrial markets including automotive and construction.

The Precious Metals division is a leading supplier to the jewellery industry of
fabricated precious metals products.

Headquartered in London, Cookson employs some 16,000 people in more than 35
countries and sells its products in over 100 countries.




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