Trading and Strategy Updates

Cookson Group PLC
07 November 2006


7 November 2006

                       TRADING AND STRATEGIC PLAN UPDATES

Cookson Group plc, a leading materials science company, will make a presentation
to analysts and shareholders at 10.30am today giving an update on trading and
the execution of its Strategic Plan.  A copy of the slides will be available on
the Cookson website, www.cooksongroup.co.uk, from 10.30am today.  A full
archived webcast will be available from mid-afternoon today.

Commenting on the trading and Strategic Plan updates, Nick Salmon, Chief
Executive commented:

'Following an encouraging performance in the third quarter we now expect
performance for the year as a whole to be slightly ahead of our earlier
expectations.  We have made good progress in executing the Strategic Plan
outlined in January 2005 and most of the original targets have been achieved
ahead of schedule.  We are convinced there is more to go for in the continued
execution of this strategy which will deliver further significant growth.   Our
financial condition is now robust.  We can therefore also start to contemplate
additional growth by acquisition in the event that suitable opportunities 
arise.'

Trading Update

End-market trends have been generally positive throughout the third quarter of
2006 and our trading in this period has been slightly ahead of our previous
expectations.

Global steel production, the most important end-market indicator for the
Ceramics division, grew over 8% in the third quarter of 2006 compared to the
same period last year.  Globally we expect growth to continue, albeit at lower
levels as in recent weeks certain steelmakers in NAFTA have been temporarily
shutting some production capacity to reduce inventory levels.  The investment in
new production capacity in China, Poland and Mexico and the restructuring of the
Ceramics division's UK operations are all progressing in line with the previous
announcements made in May and August of 2006.

The Electronics division has continued to benefit from good end-market growth in
our electronics markets but there has been some softness in automotive markets,
notably in the US.  The market transition to lead-free products (including our
proprietary lower cost, lead-free solder with a low silver content - 
Alpha SACX(TM)) has progressed as expected during the third quarter.

The Precious Metals division has seen an encouraging pick-up in activity levels
after the Summer holiday season, in anticipation of the important Thanksgiving
and Christmas seasons.  Jewellery demand in the US appears stronger than last
year and, although European demand remains weak, our European operations have
all remained profitable.

Precious metal prices, notably for gold and silver, have displayed less
volatility during the third quarter which has helped stimulate demand.

Based on trading in the third quarter and the trends experienced so far in the
fourth quarter, it is anticipated that the Group's full year trading performance
will be slightly ahead of our previous expectations.

Update on execution of the Strategic Plan - Key Points

Ceramics division

•        Good progress has been made since January 2005 in exiting marginal
activities through their sale or closure

•        Similarly, good progress has been achieved in our previously announced
restructuring plans in NAFTA and Europe, including the plans announced in August
2006 for restructuring in the UK

•        Two-thirds of revenue is now in higher margin, speciality products such
as Flow Control, Foundry and Fused Silica, which we can continue to grow by
expansion in emerging markets (in particular China, India and the CIS) whilst
maintaining competitiveness in NAFTA and Europe through efficiency improvements
(including expansion in the lower-cost countries of Mexico and Poland)

•        One-third of revenue is in Linings, primarily Monolithics and the
Construction & Installation business, where our current profitability is
significantly below that of our main competitors.  Whilst progress has been made
during 2006 to date to restore profitability, further significant improvements
can be made

•        In the medium-term, the Ceramics division is very well placed to
benefit from the expected modernisation of the steel industry in countries such
as China, India and the CIS, as well as the general trend towards consolidation
within the steel industry

•        As reported in the 2006 Interim Results, the Ceramics division has
already exceeded the return on sales margin target set in January 2005, a target
which was to be achieved by 2007.   Given the increased expectations for the
prospects for this division, the return on sales margin target has been
increased to 13% (from 10.5%), which is expected to be achieved by 2008.
Revenue from continuing operations is also expected to grow at some 5-6% per
year in the medium-term

Electronics division

•        Profitable growth going forward will be driven by:

-          New products and technical developments.  These include products to
meet the markets' increasing transition to lead-free production, such as Alpha
SACX(TM) low-silver solder and AlphaStar(TM) immersion silver, together with 
higher margin products for the PCB and semi-conductor related markets, including 
copper damascene and products for the wafer bumping process

-          Strong growth in the Chemistry sector in China, following the
successful buyout in October 2006 of our former 49% joint venture partners for a
cash cost of £2.4 million.  As well as enhancing our ability to service the
fast-growing industrial sector in China, this transaction is highly earnings
accretive and will enhance net earnings by around £1.5 million per annum

-          Further restructuring of the Chemistry sector's production and sales
& marketing infrastructure in Europe to save £2.0 million per annum with effect
from 2008

-          Further restructuring of the Assembly Materials sector's production
capacity in NAFTA to save £2.2 million per annum with effect from 2008

•        The return on sales margin target of 10.5% has already been achieved in
2005.  Looking forward, revenue growth and return on sales margin targets are,
we believe, less relevant in this division due to the recent very significant
volatility of tin and precious metal prices, which impacts both the Assembly
Material and Chemistry sectors, coupled with the impact of the ongoing lead-free
transition affecting silver volumes, particularly in the Assembly Materials
sector.  However, significant growth in the absolute performance of the division
is expected going forward

Precious Metals division

•        The US operations, which constitute nearly 60% of the division's net
sales, are in good shape:

-          Having being substantially restructured in 2005, the 15% return on
net sales value margin target for these US operations is maintained for 2007 and
is close to being achieved in 2006

-          Restructuring of the ear-stud business, announced in August 2006,
will be completed by mid-2007 giving cost savings of £1.5 million per annum.

•        Turnaround of the UK operations is proceeding as planned and will
continue in 2007.  As a result, return on net sales value margins for the
European operations as a whole should reach mid single-digit levels in 2007

Group

•        Financial position: as a result of the successful implementation of the
disposal programme announced in January 2005 and the Group's recent strong cash
generation, the Group's financial position is robust.  Expectations for year-end
net debt are in line with previous guidance

•        Rationalisation costs: cash-related rationalisation costs, relating to
the various cost-reduction programmes initiated during 2006 and prior years, are
expected to total around £20 million for 2006, in line with our previous
expectations.  Current expectations are for the level of cash-related
rationalisation charges to fall to between £10-15 million in 2007 and between
£5-8 million per annum from 2008.  In addition to the cash-related
rationalisation costs, non-cash related asset write-offs of around £15 million,
principally related to factory closures, are expected in 2006

•        Capital Expenditure: capital expenditure is expected to total around
£40 million for 2006, rising to between £45-50 million in 2007 reflecting, in
particular, the previously announced investments in the Ceramics division in
China, Poland and Mexico, together with the expansion of capacity in China for
the Chemistry sector.  Capital expenditure should return to the underlying rate
of around £40 million per annum for 2008

•        Employee Benefits: in order to significantly reduce the future
volatility of the UK employee benefit deficit (which stood at £96 million as at
30 June 2006), the Cookson Group Pension Scheme has recently implemented risk
mitigation elements within its investment strategy which have involved it
entering into a portfolio of inflation and interest rate swaps, executing an
equity hedge and planning an increase in its asset diversification.  The effect
of these arrangements is to significantly narrow the range of likely outcomes
for the employee benefit deficit arising from variability in the investment
performance of the Scheme's assets due to the impact of future changes in
economic circumstances and other aspects of financial market pricing which are
largely outside of the Group's control.  These risk mitigation enhancements have
not impacted on the expected return assumptions in the Group's financial
reporting under IAS19.  In addition, further progress has been made in reducing
both the quantum and future volatility of the employee benefit deficit in the US
through planned amendments to the Group's major US schemes

•        Acquisitions: our strategy is targeted to deliver continued strong
growth and cash generation without the need for significant acquisitions.
However, the Group's financial position is now robust and the potential exists
to make acquisitions in the event that suitable opportunities arise. Potential
interest, in particular, would be for bolt-on acquisitions which could
complement the Ceramics division's technical service offering to the steel
industry, and in the Electronics division, companies with good technology but
which lack global reach such that they can therefore be leveraged via the
Group's worldwide sales, technical support and production network.

For further information please contact:

Shareholder/analyst enquiries:
Nick Salmon, Chief Executive                                          Cookson Group plc
Mike Butterworth, Group Finance Director                              Tel: [phone]
Isabel Luetgendorf, Investor Relations Manager

Media enquiries:
John Olsen                                                            Hogarth Partnership
                                                                      Tel: [phone]

About Cookson Group plc

Cookson Group plc is a leading materials science company operating on a
worldwide basis in Ceramics, Electronics and Precious Metals markets.

The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramic products to the glass and foundry industries. It
is also the regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.

The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.

The Precious Metals division is the leading supplier of fabricated precious
metals (gold, silver, platinum, etc.) to the jewellery industry in the US, the
UK, France and Spain. Products include alloy materials, semi-finished jewellery
components and finished jewellery.

Forward Looking Statements

This announcement contains certain forward looking statements regarding the
Group's financial condition, results of operations, cash flows, financing plans,
business strategies, operating efficiencies or synergies, budgets, capital and
other expenditures, competitive positions, growth opportunities for existing
products, plans and objectives of management and other matters. Statements in
this document that are not historical facts are hereby identified as 'forward
looking statements'. Such forward looking statements, including, without
limitation, those relating to the future business prospects, revenues, working
capital, liquidity, capital needs, interest costs and income, in each case
relating to Cookson, wherever they occur in this document, are necessarily based
on assumptions reflecting the views of Cookson and involve a number of known and
unknown risks, uncertainties and other factors that could cause actual results,
performance or achievements to differ materially from those expressed or implied
by the forward looking statements. Such forward looking statements should,
therefore, be considered in light of various important factors. Important
factors that could cause actual results to differ materially from estimates or
projections contained in the forward looking statements include without
limitation: economic and business cycles; the terms and conditions of Cookson's
financing arrangements; foreign currency rate fluctuations; competition in
Cookson's principal markets; acquisitions or disposals of businesses or assets;
and trends in Cookson's principal industries.

The foregoing list of important factors is not exhaustive. When relying on
forward looking statements, careful consideration should be given to the
foregoing factors and other uncertainties and events, as well as factors
described in documents the Company files with the UK regulator from time to time
including its annual reports and accounts.

Such forward looking statements speak only as of the date on which they are
made. Except as required by the Rules of the UK Listing Authority and the London
Stock Exchange and applicable law, Cookson undertakes no obligation to update
publicly or revise any forward looking statements, whether as a result of new
information, future events or otherwise. In light of these risks, uncertainties
and assumptions, the forward looking events discussed in this announcement might
not occur.


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