Trading Statement

Renold PLC
25 September 2001

25 September 2001



                    Renold plc ('Renold' or 'the Company')

                    Result of review and trading statement


At the AGM on 19th July 2001, the Company stated that, whilst the core chain
business performance was satisfactory, the machine tool and rotor business was
performing less well.

Against the continuing deterioration in the capital goods market, particularly
in North America, which directly affects the machine tool and rotor
operations, Ian Trotter, who was appointed chief executive on 1st May 2001,
has been carrying out and has now completed his review of the Company's
operations.

As a result, the Company has announced the closure of the loss-making Manifold
indexer business and the closure of the US Edgetek manufacturing facility with
the transfer of production of its range of superabrasive machine tools to the
Holroyd UK factory. These actions, taken together with the previously
announced closure of the Bradford factory, will eliminate several loss-making
operations and introduce synergies to others. Group staffing levels have been
reduced to accommodate the lower levels of activity and additional cost
reduction activities are in hand.

The poor trading of the machine tool and rotor businesses during the period
will result in a significantly reduced first half profit. In addition there
will be exceptional charges for redundancy, asset write-off and other costs
relating to the above measures amounting to an estimated £5m, and goodwill of
£1.6m previously written-off direct to reserves will be charged to the profit
and loss account in the current period.

The machine tool and rotor business is operating under a unified management
structure, reporting directly to Ian Trotter, and will be consolidated on two
sites in the UK. The core chain business continues to perform satisfactorily.
The Board anticipates that the actions detailed above will benefit the second
half and, in the longer term, will result in a much stronger Group.

The interim figures are expected to be announced on the 12th November 2001.


                                    -ends-



For further information please contact:

Renold plc

Ian Trottter, Chief Executive                                    0161 498 4500
Tony Brown, Finance Director                                     0161 498 4500

Weber Shandwick Worldwide                                        020 7329 0096

Ben Padovan / James Gordon