AGM Statement

Avon Rubber PLC
25 January 2007


Embargoed until 0700                                             25 January 2007

                                Avon Rubber p.l.c. 
                           
                          Chairman's Statement for AGM

At the Annual General Meeting to be held later today the Chairman, Mr. Trevor
Bonner, will make the following statement:-

'At the time of our Preliminary Statement at the end of November 2006 we said
that the Group had come through a period of significant strategic change. We had
disposed of our Automotive business and closed or restructured other loss making
activities and we said that the future focus would be on opportunities in
respiratory protection, dairy, aerosol gaskets and engineered fabrications. We
identified our strength and position in respiratory protection following the
acquisition of ISI, the launch of the new Escape Hood and the transfer into
production of the new M50 respirators and associated filters for the US
Government. We noted that we had seen improvement in the overall performance of
our continuing operations and we expected significant growth from the North
American respiratory protection business. The Board believed that it had laid
the foundation for a period of exciting and profitable growth for the Group and
is confident that this remains the case.

'We are now supplying against a follow on order for military respirators in
North America and expect to receive further orders which will ensure continuing
production at no lower than the current level. We remain of the opinion that
respiratory protection is an area of significant opportunity and growth for the
Group and we continue to work closely with the US Department of Defense to
ensure the smooth transition to full production of its military respirator. This
will be followed by the opportunity of selling these products to approved
governments and government departments responsible for homeland security. Demand
at ISI has continued to be lower than anticipated due to delayed release of
federal funding in the current budget year, but we expect an improvement in
performance as these funds become available. The new Rapid Escape Hood has
already been supplied in significant volumes to the UK National Health Service
and we anticipate strong demand from law enforcement agencies as well as other
commercial opportunities. We are entering an exciting growth phase in
respiratory protection over the next few years although our challenge is
predicting the timing and rate of growth for this business in the short-term.

'Sales of Dairy rubberware in North America continue at a consistently high
level and we expect this to remain the case. In Europe we have seen some growth
in sales, particularly in the aftermarket. Our Engineered Fabrications business
in Mississippi has experienced substantial growth over the last twelve months.
The order book remains strong and the business is producing good and consistent
levels of profit. We are seeing the benefits of the cost reductions we undertook
at our UK operations in 2006 and the facility at Hampton Park West is now
operating profitably. We expect this to continue.

'Based on current trading and demand we expect a return to profitability for the
continuing businesses in the first half and anticipate further improvement as
the growth in respiratory protection accelerates.'

                                     -Ends-

Avon Rubber p.l.c.                                                  01225 896831
Terry Stead, Chief Executive
Peter Slabbert, Finance Director

Weber Shandwick | Financial
Richard Hews / Rachel Taylor / Hannah Marwood                      020 7067 0700


NOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineering
group adding value through material, manufacturing and industry sector
expertise. The Group is currently capitalised at approximately £50 million.




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