AGM Statement

Johnson,Matthey PLC
16 July 2003


                              For release at 12.30pm on Wednesday 16th July 2003


                             Chairman's Statement
                            At Johnson Matthey's AGM


Commenting on current trading at today's Annual General Meeting, Michael Miles,
Chairman of Johnson Matthey, said:

'Johnson Matthey has made an encouraging start to the new financial year with
first quarter earnings before exceptional items and goodwill amortisation ahead
of last year despite the impact of lower palladium and rhodium prices and the
weaker US dollar.

Last year's results have been restated for FRS 17, the new accounting standard
for pensions, which Johnson Matthey has adopted for the current financial year.
The impact of the new standard on the results for last year is set out in detail
in the Annual Report.

Catalysts Division achieved strong growth in operating profit in the first
quarter with Process Catalysts and Technologies benefiting from a good
contribution from the former Synetix businesses acquired from ICI last November.
Environmental Catalysts and Technologies profits were also up with strong
demand in Asia.  We have been encouraged by the increased level of governmental
support for fuel cells, driven mainly by their potential to reduce global
warming and increase energy security.  The European Union, Japanese, US and
Chinese governments have recently made very positive policy initiatives in this
area and the UK is due to publish its vision for fuel cells later this summer.

Precious Metals Division's profits were below last year reflecting much lower
average prices for palladium and rhodium and the continuation of subdued trading
conditions for those metals.  The platinum price continues to be firm with the
SARS outbreak in China only having a limited impact on overall demand.

Colours & Coatings Division was ahead of last year despite weaker demand from
European tile makers.  Other parts of the division have started the year well
with our Glass business achieving good growth and Speciality Coatings continuing
to benefit from last year's rationalisation programme.

Pharmaceutical Materials Division achieved good growth in the quarter led by a
strong performance at the group's US business in West Deptford, New Jersey.
Good progress is also being made there towards the manufacture of morphine and
codeine in the US.

Looking forward to the half year we would expect to see continued good growth in
operating profit for the group, despite weak demand in some of our end markets
and the impact of the fall of the US dollar.  However, the group's net interest
charge for the half year will also show a significant increase, partly as a
result of higher average borrowings following the acquisition of Synetix, but
also as a consequence of the change to FRS 17 and the reduction in the pension
fund surplus at 31 March 2003.  Overall we are confident that the group will
achieve continued growth in earnings before exceptional items and goodwill
amortisation in the half year.

The long-term prospects for Johnson Matthey remain very encouraging.  We are
continuing to invest in R & D and new facilities to take full advantage of the
growth opportunities in Catalysts and Pharmaceutical Materials.'


Enquiries:

Chris Clark, Chief Executive                                       020 7269 8435
John Sheldrick, Group Finance Director                             020 7269 8438
Ian Godwin, Group Corporate Communications Manager                 020 7269 8410
Howard Lee, Gavin Anderson & Co                                    020 7554 1400


                      This information is provided by RNS
            The company news service from the London Stock Exchange