Trading Update

Volex Group PLC
29 January 2008


29 January 2008

                                Volex Group plc

                                 Trading Update



Volex Group plc, the global electrical and electronic cable assemblies company,
is providing an update on recent trading performance.

The restructuring of our Wiring Harness division is well advanced, however, it
has taken longer to deliver the operational efficiencies than we had expected.
This has impacted operating margins, with higher costs incurred in maintaining
customer service levels. These additional costs are expected to reduce to more
normalised levels by the end of the financial year when the restructuring will
have completed.

We are seeing growth in Interconnect products (particularly from industries such
as medical and IT), despite a significant and well publicised downturn in the
wireless infrastructure segment. However, the cost to support the ramp up of new
products has been higher than we expected in terms of start up costs and
inefficiencies. Nevertheless we remain confident that the Interconnect segment
represents a significant profit opportunity.

As a consequence, whilst sales are expected to be broadly in line with our
expectations, operating margins and profit before tax in the second half will be
significantly lower than those reported for the first half.

Overall revenue growth has accelerated from the first half and we expect that
the momentum will continue throughout the rest of the year. We continue to win
new projects across all three divisions that will provide a strong base to
support the expected growth next year. We are gaining market share with our key
targeted customers in market segments which are currently experiencing
structural growth. The strategy to focus on key technologies for market leading
customers is yielding results.

While we remain cautious about the impact of any change in global economic
conditions, the Board is broadly comfortable with the trading outlook for the
next financial year. We will issue our next interim management statement on
February 15th.

                                      END


Volex Group plc                                              01925 844601   
Heejae Chae, Group Chief Executive
Ian Degnan, Group Finance Director

Weber Shandwick Financial                                    020 7067 0700
Terry Garrett  





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