Trading Update

Cookson Group PLC
21 January 2004



21 January 2004


COOKSON GROUP FOURTH QUARTER TRADING UPDATE

In line with past practice, Cookson Group plc, the international materials
technology company, today issued an update on trading for the fourth quarter of
2003 and on the unaudited results for the year as a whole.


Overview

The positive momentum that Cookson experienced in the latter part of the third
quarter was sustained throughout the fourth quarter of 2003, particularly in the
Electronics division. As a result, the Group's pre-tax profit for the year will
be ahead of market estimates.


Electronics

The Electronics division benefited from further improvements in activity levels
in the electronics industry and also from new product introductions and customer
gains. The division's sales for the fourth quarter were 14% higher than the same
period last year and were the highest since the second quarter of 2001. As a
consequence of increased sales, positive operational leverage and cost saving
initiatives, operating profit for the fourth quarter was significantly higher
than the same period last year and was more than double that of 2002 for the
year as a whole.

The Laminates sector of the Electronics division, which had been the most
severely affected by the electronics industry downturn, achieved a sales
increase of more than 30% in the fourth quarter over the same period last year.
This was due mainly to strong growth in Asia-Pacific and US markets, the
benefits of the new product introductions - including GETEK(R) - and market
share gains. Importantly, the Laminates sector operated near break-even in the
fourth quarter, a significant improvement over the same period last year when an
operating loss of more than £9 million was incurred. The Assembly Materials
sector recorded sales growth of approximately 10% in the fourth quarter,
although profitability was held back by sharply higher tin prices and lower
profits in its conformal coatings operations. The Chemistry sector continued to
record positive results; sales grew by nearly 10% in the fourth quarter over the
prior year and operating profits rose strongly.


Ceramics

Steel production in the fourth quarter in the Ceramics division's largest
markets - the EU and the USA - was virtually unchanged over 2002. With 70% of
the division's activities linked to steel production, sales in the fourth
quarter were marginally higher than last year. Operating profit for the year was
some 10% higher than 2002 although, as expected, profits for the fourth quarter
were lower than those of Q4 2002 which had benefited from a particularly strong
performance from the division's Glass sector.

In December, the division disposed of its loss-making insulating fire brick
manufacturing business in France for a nominal amount; this business incurred a
loss of approximately £1 million in 2003 and had a net asset value, including
goodwill, of £15 million.


Precious Metals

In the Precious Metals division, sales for the fourth quarter were 6% higher
than the same period last year, although this increase was inflated by a
markedly higher gold price than in the corresponding period last year. The
encouraging signs seen early in the fourth quarter, and the anticipation of a
possible final surge in holiday season sales later in the period, did not fully
materialise as demand for the division's largest end market product - gold
fabricated jewellery - remained relatively soft. This was largely due both to
the current fashion for silver and gemstone products and to the sharply higher
gold price. Despite a lower cost base, the division's operating profit in the
fourth quarter was lower than last year and, for the year, was well down on 2002
following a particularly weak first half.

As a further measure to improve profitability, a programme commenced this month
to restructure and rationalise the loss-making French jewellery business.
Details will follow of the expected one-off costs and ongoing benefits
associated with this programme.


Group

Operating profit for the Group's continuing operations for the year was
approximately £80 million. After accounting for interest paid and for losses of
some £17 million incurred by businesses disposed of this year - mainly Speedline
- Group profit before tax was approximately £31 million in 2003, which compares
with £4 million in 2002. Profit before tax for the second half of 2003 of some
£25 million compares with £6 million in the first half of the year and £16
million in the second half of 2002. Exchange rate translation differences did
not have a material impact on the Group's reported operating profit.

Cash flow was robust in the fourth quarter. This, together with a positive
exchange rate impact on dollar denominated borrowings and strong cash flow in
the first half, resulted in the Group's net borrowings decreasing from £428
million in 2002 to some £360 million at the end of the 2003.

The Group's audited preliminary results for 2003 will be announced on 24
February 2004.



The Company will hold a conference call for analysts and shareholders today at
9:30am that will be broadcast live at www.cooksongroup.co.uk.


Shareholder/analyst enquiries:

Stephen Howard, Group Chief Executive                   020 7061 6500
Dennis Millard, Group Finance Director                  020 7061 6500
Lisa Williams, IR Manager                               020 7061 6500



Media enquiries:

John Olsen, Hogarth Partnership                         020 7357 9477



Notes:

(1) All financial information in this Trading Update is preliminary and
unaudited. Sales and operating profit comparisons are at 2003 average exchange
rates whereas that for Group profit before tax is at reported exchange rates for
the respective periods. Operating profit and profit before tax are stated before
all exceptional items and goodwill amortisation and, unless indicated otherwise,
sales and operating profit are for Continuing Operations.

(2) This announcement may contain forward-looking statements about Cookson.
Although the Company believes its expectations are based on reasonable
assumptions, any such 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 such
statements, certain of which are beyond the control of Cookson.


About Cookson Group

Cookson Group is a leading materials technology company which provides
materials, processes and services to customers worldwide. The Group's operations
are formed into three divisions - Electronics, Ceramics and Precious Metals. The
Electronics division is a leading manufacturer and supplier of materials and
services to the electronics industry, primarily serving fabricators and
assemblers of printed circuit boards, assemblers of semiconductor packaging and
the electrical and industrial markets. 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 refractory lining
materials for iron and Steelmaking and other industrial processes. The Precious
Metals division is a leading supplier to the jewellery industry of fabricated
precious metals products.


Headquartered in London, Cookson employs over 15,600 people in more than 35
countries and sells its products in over 100 countries.



Cookson Group plc, 265 Strand, London WC2R 1DB
Tel: [phone] Fax: [phone]
www.cooksongroup.co.uk


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