AGM Statement

600 Group PLC
08 September 2004



                                                              8th September 2004

                               THE 600 GROUP PLC

                      CHAIRMAN'S STATEMENT TO THE 2004 AGM


As anticipated in the announcement of the Group's preliminary results in June,
the downturn in our machine tool markets has definitely arrested and our UK and
USA machine tool markets continued to show gradual but erratic improvements
during the first few months of the year. Far East markets were buoyant but
activity levels in other European markets remained generally depressed.



Despite the impact of short-term international economic and political factors,
all recent independent surveys continue to forecast steady growth in our major
western markets together with some easing in Far East markets to more
sustainable levels.



Since the year end our efforts have been focussed on product range development
and increasing market share. Notable events include



     -   a very successful MACH 2004 exhibition in the UK in April, with
         enquiries up 32% overall and Electrox enquiries up 69%

     -   an excellent exhibition in Slovakia as part of our long-term programme
         to increase sales into Eastern Europe

     -   the establishment of an additional Technical Centre for Colchester
         lathes at Loughborough to improve support to our direct sales operation 
         in the Midlands and East of England

     -   the successful addition of the Colchester and Electrox product ranges
         to the portfolio offered by our subsidiary in Germany

     -   the major expansion of our range of Richmond vertical machining
         centres

     -   a new agreement to sell the Toyoda Mitsui range of horizontal
         machining centres and grinding machines in the UK through 600 Centre

     -   significant orders for Electrox laser markers for the mobile phone
         keypad market

     -   further expansion of our supply and marketing programmes in China.



As a result of improving market trends and intense sales activity, the Group's
underlying order intake in the first four periods was up approximately 10% on
last year, with improvements in all geographic areas.



To conclude, I should like to emphasise that the gradual market recovery is
likely to be maintained and that the Group has already demonstrated that it is
in a strong position to continue to benefit from this anticipated ongoing upturn
in activity.


                                                                  Michael Wright
                                                                        Chairman
                                                              8th September 2004

Enquiries:

Tony Sweeten, Group Chief Executive                 Telephone:    [phone]
John Fussey, Group Finance Director

gcg hudson sandler                                  Telephone:    [phone]
Nick Lyon




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