Trading Statement

De La Rue PLC
18 February 2003

                                 DE LA RUE PLC

                                TRADING UPDATE


The Board of De La Rue announces that trading since the new year has been
significantly below expectations principally in Cash Systems and, to a lesser
extent, in Global Services.  As a result, for the year ending 29 March 2003 we
now anticipate profit before tax, exceptional items and goodwill amortisation to
be in the order of
25 per cent below market expectations.


Cash Systems

In Cash Systems, despite healthy order intake across the business in December
and January, since the new year there has been a sharp deterioration in the
trading environment for the Financial Institutions business in Germany and
Spain.  In Germany, we expect sales levels in the final quarter to be 50 per
cent down on last year's equivalent period, which was in itself impacted by
reduced demand arising from the completion of the euro currency change over.  In
Spain, customers have postponed the delivery period of significant orders into
the next financial year.  The business is taking further action to reduce its
European cost base.  Other markets, in particular the USA, now the largest
single market, have performed well and in line with expectations.

In the Currency Systems unit of Cash Systems, profit will be significantly worse
than expected despite encouraging order levels in a difficult market which is
impacted by present political and economic uncertainties.  Customers are
delaying orders and acceptance of delivery against important contracts.
Continued margin pressures have been exacerbated by a failure to control costs
of manufacturing during the ongoing transfer of production from the UK to the
USA and Russia, consequent on the integration of the Currency Systems
International business.  Actions are in hand to address these issues.

The costs of the actions indicated above will be taken in the current year and
will be subject to appropriate employee consultation.

Global Services and Security Products

Global Services continues to experience difficult trading conditions and will,
as a consequence, make a loss in the year.  In particular, timing delays on
expected projects within the Identity Systems business have impacted revenues
for the current year and changes in customer schedules have had a negative
impact on Tapes and Holographics.   Rationalisation of our Security Products'
manufacturing operations and overhead reductions is proceeding to plan, the full
benefits of which will come through in the 2003/2004 financial year.

Currency

Currency continues to perform in line with our expectations and the outlook for
the balance of the year is underpinned by a strong banknote order book and a
return to historical ordering patterns and volumes of banknote paper.

Final Dividend

Underlying cash generation remains strong and at this stage the Board expects
that the final dividend will be maintained at last year's level.

                                     -ends-


For further information please contact:

Stephen King       Group Finance Director            [phone]
Mark Fearon        Head of Corporate Affairs         [phone]
Mike Smith         Brunswick                         [phone]
Jonathan Glass


18 February 2003

Notes to Editors:

 1. De La Rue will announce its Preliminary Results on 28 May 2003


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