Trading Statement

Cookson Group PLC
15 January 2002

15 January 2002


FOURTH QUARTER TRADING UPDATE

Further to the statement made on 17 December 2001 that profits for the year
were expected to be in line with market estimates, Cookson Group plc today
provided the following update on trading for the fourth quarter of 2001.

Overall, trading conditions in the fourth quarter in the Group's major markets
were unchanged from the third quarter. As a consequence, sales for the Group's
continuing activities in the fourth quarter were in line with those of the
third quarter of 2001, though down 30% compared to the fourth quarter of 2000.
For the year ended 31 December 2001, sales for continuing activities of
approximately £2 billion were 17% below last year and pre-tax profit before
exceptional items and goodwill amortisation is expected to be some £7 million.

The Electronics division continued to be affected by the unprecedented
downturn in global demand experienced by the electronics industry in 2001
compared to that in 2000. As a result, fourth quarter sales were down 49% from
the strong fourth quarter experienced in the previous year. Sales in the
quarter were 4% lower than the third quarter of 2001, with the shortfall
arising from Alpha-Fry and Polyclad's laminates activities, whilst sales were
unchanged for the division's other two major businesses, Speedline and
Polyclad's chemistry activities. This provides some indication that the
downturn in the electronics industry may have begun to bottom out in the
fourth quarter.

In the Ceramics division, sales for the quarter were down 5% on last year but
up 3% on the third quarter of 2001. Weakness persisted in the US and UK steel
industries, both of which are major end-markets for the division's products
and services, and fourth quarter steel production in these regions declined
from the third quarter of 2001. The Glass and Foundry sectors and steel
related activities outside the US and UK, on the other hand, experienced a
slight improvement in offtake.

In the Precious Metals division, the sharply reduced consumer confidence in
the US in the aftermath of the September 11 attacks continued to affect demand
in the fourth quarter. Trading in the Jewellery Products sector was therefore
less buoyant for this time of the year and sales during the quarter were down
9% compared to the prior year. However, sales were up 6% on the third quarter
of 2001 mainly due to the normal holiday season demand. The difficult US
manufacturing environment also continued to affect the performance of the
division's Precision Products sector.

The various initiatives to realign the Group's cost base with current and
near-term market conditions, details of which were provided in the third
quarter trading update on 5 October 2001, are now well advanced. The reduction
in the Group's annual cost base that arises from all of these initiatives is
some £90 million, with a benefit of £40 million accruing in 2001.

The programme to dispose of non-core businesses continued and on 2 January
2002 the sale of the Group's Plastic Mouldings businesses was announced. These
activities were sold in four separate transactions for a total consideration
of £38 million, with all proceeds being received in 2001.

On 24 December 2001, it was announced that a new £450 million multi-currency
revolving credit facility had been arranged with a final maturity date of
September 2004. This new facility was arranged with the Group's existing core
bank group and replaced facilities of some £500 million, of which £240 million
was due for repayment in 2002.

Positive free cash flow was generated in the fourth quarter after payment of
the 2001 interim dividend of £33 million. As a result, the level of net
borrowings at the end 2001 will be lower than the £794 million recorded at the
beginning of the year.

Commenting on trading in the fourth quarter, Group Chief Executive Stephen
Howard said:

'After severe declines in activity experienced from early in the year, trading
conditions in Cookson's major markets generally appeared to stabilise in the
fourth quarter. The significant reductions in the cost base achieved in 2001,
together with our industry leadership positions and our ability to generate
free cash flow, provides the Group with a strong platform as market conditions
improve.'

Preliminary results for the year ended 31 December 2001 will be announced on
Tuesday 26 February 2002.

For further information, please contact:

Stephen L. Howard

Group Chief Executive

Cookson Group plc

Tel:     [phone]

Fax:     [phone]

e-mail: [e-mail]


Dennis H. Millard

Group Finance Director

Cookson Group plc

Tel:     [phone]

Fax:     [phone]

e-mail: [e-mail]

Note: This announcement contains certain forward looking statements about
Cookson. Although the Company believes its expectations are based on
reasonable assumptions, any forward looking statements may be influenced by
factors that could cause actual outcomes and results to be materially
different from those predicted. These forward looking statements are subject
to numerous risks and uncertainties that could cause actual results to differ
materially from those in forward looking statements, certain of which are
beyond the control of Cookson.

A conference call for analysts to discuss this announcement will be held at
16:00 GMT on Tuesday 15 January. The call will be broadcast live on Cookson's
website www.cooksongroup.co.uk.