Trading Update

Zotefoams PLC
16 July 2002


PRESS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

16 July 2002




Zotefoams PLC ('Zotefoams' or 'the Company')

Insurance Settlement and Trading Update


Following the fire at its Croydon facility in October 2000 Zotefoams plc
announces that a final settlement of £13.9 million has now been received from
its insurers.

As disclosed at the time of the Company's preliminary results, which were
announced on 12 March 2002, total proceeds received from the date of the fire to
31 December 2001 were £6.0 million.  The Board expects there will be
approximately £1.5 million of revenue expenses (comprising principally repairs
and replacement costs, hire charges and professional fees) to be offset against
the remaining proceeds of £7.9 million. The balance of approximately £6.4
million will be recorded as an exceptional profit before taxation in the current
financial year.  Capital expenditure in the current financial year on rebuilding
and reinstating the site is expected to be approximately £3.6 million and the
Board anticipates that the site reinstatement will be completed, on schedule, by
the end of this financial year.

The Board's expectations for the full financial year have been impacted by a
weaker than expected end to the first half and higher than previously
anticipated polymer prices.  Therefore despite a strong start to the second
half, the Board now believes that profit before taxation for the full financial
year is likely to be approximately 20% below market expectations.




Enquiries

Zotefoams plc                                    020 8664 1600
David Stirling, Managing Director
Clifford Hurst, Finance Director

Financial Dynamics                               020 7831 3113
Charlie Armitstead





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