Trading Statement

Intertek Testing Services PLC 15 May 2003 Intertek Testing Services plc ('Intertek') Trading Statement Following the Annual General Meeting at 10.00am today, Intertek will hold an Investor Day for investors and analysts, starting at 1.15pm. The executive management, including the head of each division, will provide information on Intertek's business and opportunities. We currently believe that trading for the year will be in line with expectations, despite reduced activity in some areas in the first four months of the year and despite the continuing weakness of the US dollar and US dollar related currencies, which continue to have a direct translation effect on approximately 80% of the Group's operating profits. Intertek continues to benefit from the wide variety of products being made, the shortening product life cycles, the introduction of new safety standards, the rising demand for quality and performance, and the expanding sourcing from Asia and other Far East areas. The testing and inspection of consumer goods has been especially strong. Trading has remained unaffected by the spread of the SARS virus, although any substantial reduction in new orders won by the Chinese manufacturers that we service would have a detrimental effect on the business. Labtest The testing and inspection of textiles, toys and other consumer goods continues to grow well, especially in China and other parts of Asia. In order for Intertek to develop its own system certification business in Asia, Labtest has sold its 50% shareholding in its system certification joint venture in China, BSI Pacific Limited (BSIP), to the other shareholder, the British Standards Institution for a cash consideration of £6.8 million. In 2002, BSIP had sales of £6.1 million and Labtest's 50% share of BSIP's operating profit was £0.7 million. Caleb Brett Testing outsourced by oil and chemical companies was 23% of this division's turnover in 2002. New outsourcing work is being won and an increasing number of new opportunities are being pursued. The inspection and testing of oil and chemical cargoes was 77% of this division's turnover in 2002. This part of the business has seen low volumes of shipments in the year to date, mainly due to the Iraqi situation as a result of which traders have carried out little activity and oil stocks have been very low. The division is being restructured so that the people and resources are more focused on winning contracts in outsourced testing which yields higher profit margins than the cargo business. In particular, cargo offices with low returns are being closed or consolidated, and some laboratories are being merged so that they have more testing capabilities and can attract further outsourced testing. ETL SEMKO In ETL SEMKO, the testing and certification of electronic and electrical products and building products continues to expand, especially in Asia. Telecommunications testing volumes in the USA and Europe have not yet recovered from the downturn that started in mid 2001. In the testing of air conditioning equipment, there was a revision to the performance standard which resulted in work being delayed in the first few months of the year. FTS Shipments to Saudi Arabia and Nigeria are down on the previous year because of the political situations in those regions. The standards programme with the government of Kuwait commenced in March 2003 but it is still in a start up phase. Exceptional Items Approximately £1.7 million of income arising from FTS government contracts relating to previous periods will be recognised as exceptional income in the half year to 30 June 2003. Exceptional income of approximately £0.9 million has been recovered from insurers in respect of the liabilities relating to the Environmental Testing division, closed in 1998. The restructuring of the Caleb Brett division is expected to result in an exceptional charge of approximately £2.7 million in the half year. Notes to Editors Intertek is a leading international testing, inspection and certification organisation which assess customers' products and commodities against a wide range of safety, regulatory, quality and performance standards and in some cases, certifies the management systems of customers. Intertek has over 250 laboratories with more than 10,000 people around the world and is increasingly undertaking outsourced testing work for its customers. For further enquiries, please contact: Aston Swift, Group Treasurer and Investor Relations 020 7396 3400 David Trenchard, Tim Lynch, Tulchan Communications 020 7353 4200 For further information, visit our website at www.intertek.com This information is provided by RNS The company news service from the London Stock Exchange
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