Trading Statement

Volex Group PLC
11 February 2005


EMBARGOED UNTIL 7.00 a.m. 11TH FEBRUARY 2005

                                  VOLEX GROUP plc

                                  TRADING UPDATE

In the interim results announcement on 10th November 2004, the Chairman,
commenting on current trading, stated that the Group remained cautious about the
sustainability of the current demand profile and the challenges the Group faced.
The Chairman also reported on the action being taken in North America to bring
the Group back to more acceptable levels of performance.

Since that update, the North American operation has been brought firmly under
control with the new management team now in place and costs have already been
taken out of that business unit as it returns to profitability. The operation
has substantially recovered from the effects of the fire in Tijuana, Mexico, in
September 2004. There has been an adverse effect on the operational results of
the division as work has been rapidly transferred to higher cost facilities as a
temporary measure but this has enabled the successful mitigation of the impact
on the customer base and all customer relationships have been maintained.
However, commodity prices, in particular copper, have continued to escalate
faster than the Group's ability to recover these increases from its extensive
customer base. This factor together with the prospect of somewhat weaker than
expected sales in the final quarter of the year is currently expected to produce
a profit before tax towards the bottom of the current range of market
expectations.

Through the course of the current financial year Volex has been working to
resolve a number of overseas tax issues relating to earlier years. Negotiations,
ongoing with local tax authorities, now indicate that the level of these
exposures is greater than previously estimated. The Board therefore considers it
will be prudent to increase the level of provisions in the current financial
year by up to £3m.

The Board is also conducting a review of the Group's balance sheet and currently
intends to provide for two property leases and for the goodwill in respect of
the Brazilian business. In addition, the Board currently proposes to write off
an automated manufacturing line, previously intended for redeployment within the
Group but now determined not to be economically viable. The provisions arising
from this review are currently expected to reduce net assets at the end of the
year by approximately £5m.

The insurance claim process in respect of the September 2004 fire in one of the
factories in Tijuana, Mexico is continuing and it is not possible at this stage
to estimate how much of the insurance claim currently carried as a £2.2m
receivable in the Group's balance sheet will be recovered.

Upon completion of its budget process, the Group will, in March, start
discussions with its three principal banks to extend its existing bank
facilities by a further year to 30th June 2006 and to provide sufficient
flexibility to carry out operational restructurings aimed at improving the
competitiveness of the Group.

Whilst the above issues are significant to the Group they are mostly one-off and
historical in nature. The Group continues to revitalise its management team,
hiring expertise in areas for business growth and has excellent prospects for
new business with new customers. The operational performance of the Group is
beginning to deliver the benefits of the restructurings over the past number of
years. The Group has continued to generate cash from its properties and has
realised £3m in the second half of the year from this initiative. The Board
believes that actions that have been, and are being, taken throughout the
business will continue to position it firmly in the marketplace as a competitive
provider of value cable assembly solutions to our customers.



D.J. Molloy                                                        J. Corcoran
Chairman                                                 Group Chief Executive


For further information please contact:

Volex Group p.l.c.                                            Tel: [phone]
Dom Molloy, Chairman
John Corcoran, Group Chief Executive
Derek Walter, Group Finance Director

Weber Shandwick Square Mile                                  Tel: [phone]
Chris Lynch/Nick Dibden




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