Trading Update

Cookson Group PLC
29 June 2001

FOR RELEASE AT 0700 0N FRIDAY 29 JUNE 2001

TRADING UPDATE

Cookson Group plc, the international materials technology company, today
provided the following update on trading ahead of the release of its interim
results on 26 July.

'In the trading update provided at the AGM in April, it was predicted that the
difficult conditions in Cookson's major markets experienced during the first
quarter would persist at least throughout the second quarter.

'Cookson's Electronics division continues to be adversely impacted by the
downturn in the electronics industry which deepened during the second quarter. 
This was first manifested in the USA and is now being felt in other regions,
including Europe and Asia-Pacific.  The severe effect of this unprecedented
downturn on the profitability of our customers, peers and other major players in
the industry has been well documented.  The sharp fall in demand already
experienced by the division's equipment sector, Speedline, has now spread to
other parts of the division.  In particular, the laminates business of Polyclad
Technologies suffered a severe drop in demand in April and May.  As a
consequence, the division's second quarter sales are expected to be some 20%
lower than the preceding quarter, which would result in sales for the first half
of 2001 being some 25% down on the same period last year. The cost reduction
programme that was outlined at the AGM has now been fully implemented and the
Electronics division's headcount has been reduced by 18%. Further measures to
realign the division's cost base in order to take account of the most recent
decline in activity are underway.

'The US steel industry continues to perform poorly and, for the first five
months of the year, steel production was 13% down on last year. This has
resulted in a marked fall in profitability for the steel related activities of
the Ceramics division in that region. With the exception of the US and the UK,
steel production volumes in the rest of the world are holding up reasonably well
and the division's performance in these regions has been less affected. The
Premier Refractories integration programme is nearing completion and firm action
is being taken to improve profitability in the US and UK activities.  For the
Precious Metals division, year-to-date trading performance continues to be
broadly in line with last year. 

'In addition to the cost savings initiatives outlined above, a Group - wide
programme is underway to generate cash and reduce borrowings.  This initiative
involves a reduction in working capital and capital expenditure and realising
cash from an on-going asset disposal programme. This is expected to yield a
marked improvement in free cash flow in the first half of the year in comparison
with last year.

'Given the sharper than expected fall in activity in the electronics industry in
the last two months and the continued fall in steel production in the USA, it is
now anticipated that pre-tax profit, before exceptional items and goodwill
amortisation, will be approximately £30 million for the first half of the year. 
The intention of the Board is to declare an unchanged interim dividend of 4.5
pence per share when the results are released in July. 

'Management remains confident of the long-term benefits to be derived from
Cookson's global market positions and its world-leading technologies. The
Company's competitive and financial position remains sound and management will
continue to take firm and swift action to respond to market conditions.'

For further information, please contact:
Stephen Howard                              Dennis Millard
Group Chief Executive                       Group Finance Director
Cookson Group plc                           Cookson Group plc
Tel:     [phone]               Tel:     [phone]
Fax:     [phone]              Fax:     [phone]
e-mail: [e-mail]        e-mail: [e-mail]