Trading Statement

Zotefoams PLC 21 November 2001 November 21st 2001 Zotefoams plc Trading Statement At the time of the Group's Interim Results on the 14th August 2001, Zotefoams stated that good levels of sales growth were anticipated, but that this was dependant on economic conditions, forecasts for which remained mixed. Against these expectations the Group is now experiencing a shortfall in sales caused by worsening economic conditions. This is particularly the case in continental Europe where underlying demand is now anticipated to be lower than original projections. A similar effect is being experienced in North America, although a more limited exposure gives a smaller impact on Group profitability. The Croydon site, which was struck by a fire in October last year, continues to make progress towards a full recovery, although this is now not expected until late 2002 due to construction constraints. Since 30th June 2001 an additional £750,000 has been received from insurers in respect of plant and equipment damage. A preliminary business interruption claim has now been made and is under discussion with the Group's insurers. In the 2001 Report and Accounts the effect of the fire will be reported as an exceptional item with the impact on both this and operating profit dependant on the outcome of discussions with insurers. The Board believes that the combined effects of these factors will lead to profit before tax (excluding exceptional items) being materially below market expectations for the year ending 31st December 2001. Enquiries: Zotefoams Plc 020 8664 1600 David Stirling, Managing Director Financial Dynamics 020 7831 3113 Charlie Armitstead

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