Interim Management Statement

EMBARGOED UNTIL 0700 HOURS, 17 NOVEMBER 2008                  

                         INTERIM MANAGEMENT STATEMENT                          

                               17 NOVEMBER 2008                                

Bodycote plc, the specialist thermal processing company, today issues its
Interim Management Statement, covering the period from 1 July to 16 November
2008 and provides an update to its outlook for the year ending 31 December
2008.

Disposal of the Testing Strategic Business Unit (SBU)

On 27 August 2008, Bodycote announced the conditional sale of its Testing
Strategic Business Unit to CDR Tabasco Limited, a company formed by Clayton
Dubilier & Rice Fund VII LP for a consideration of approximately £417m in cash,
together with a vendor loan note in respect of 65 acres of land in Mississauga,
Canada. The net proceeds, after allowing for expenses and taxes were expected
to be approximately £380m. At the same time, Bodycote announced the proposed
return of c. £260m (equivalent to approximately 80 pence a share) in cash to
shareholders from the proceeds of the disposal.

On 17 October the Board announced that it had completed the disposal and that
all cash funds had been received.

In the year to 31 December 2007 the Testing business generated revenues of £
176.1m, headline operating profit1 of £21.0m and operating profit £15.7m. In
the six months ended 30 June 2008 revenues were £100.2m, headline operating
profit1 was £11.5m and operating profit £11.1m. Revenues in the period 1 July
to 17 October were £70.2m with margins maintained.

1 Pre exceptional items and interest and tax on associates

Current Trading

At the time of the interim results announcement, we reported that Group
revenues in the first half at £382.6m were 21% higher (12% at constant exchange
rates) than in the equivalent period of 2007 and that headline operating
profit1 was £52.4m compared to £48.2m in 2007, an increase of 9%. For the same
period Thermal Processing recorded revenues of £282.8m, also an increase of 22%
(12% at constant exchange rates) of which 5.2% was organic and the balance from
acquisitions.

Sales growth in Thermal Processing from 1 July to 16 November has been
approximately 21% (7% at constant exchange rates) compared to the same period
last year, of which 1% was organic and 6% was from acquisitions. Operating
margins for the year to date are lower than the same period in 2007 by 2
percentage points.

Aerospace, power generation and oil & gas markets remain satisfactory. Demand
from European automotive and truck customers has declined recently and is
expected to remain at depressed levels for some time, whilst North American
automotive trading has continued to be weak. As previously indicated,
approximately 23% of Thermal Processing revenues are generated from automotive
sectors and a further 6% from heavy truck.

Restructuring Plans for Thermal Processing

As previously announced, we are restructuring the Thermal Processing business.
In light of the global economic downtown and trading conditions and the
uncertainty as to their duration, these plans are being developed on a wider
basis than originally contemplated. Actions in North America are well underway
but are at an earlier stage throughout the rest of the Group. The full extent,
cost and benefits of this programme are currently being evaluated.

Outlook

Following reductions in sales and orders during October and November,
particularly in continental Europe and expectations of production closures by
customers in the automotive and heavy truck sectors during December, Thermal
Processing revenues in the second half of 2008 are overall now expected to be
similar to 2007 in constant currency terms with organic sales slightly lower.
As a result, performance in the second half is now expected to be modestly
below management's previous expectations.

Given the current volatility in customer demand, trading performance in 2009
will depend on the length and depth of the global economic downturn.

Return of Cash to Shareholders

Due to unprecedented financial market conditions since the initial announcement
of the sale, and following consultations with a number of Bodycote's leading
shareholders and advisors, the Board has concluded that it would not now be in
the best interests of our shareholders or the Company to return all of the
previously indicated £260m to shareholders at this time. The Board therefore
intends, subject to shareholder approval, to return approximately £130 m of the
proceeds from the sale of Testing to shareholders, equivalent to 40 pence per
existing ordinary share, with the remainder being used to reduce our existing
net debt.

The Board believes that returning 40 pence per share and retaining the balance
of the proceeds leaves Bodycote in a strong financial position and will better
enable the Group to maximise the benefit from opportunities that will arise to
meet customers' additional needs for the Group's services.

Bodycote is committed to maintaining a strong balance sheet which provides the
flexibility to continue its strategy whilst also being appropriate for the
macroeconomic environment. After the return of cash to shareholders the Group
expects to have negligible net debt and aims to maintain this position for the
foreseeable future. The Board will continue to monitor the appropriateness of
its capital structure at regular intervals going forward. The Group's main
banking facilities run to August 2010 and July 2013.

Bodycote expects to issue a circular to shareholders later this month detailing
the method and timing of the proposed return of cash, which is expected to be
by way of a B-share scheme accompanied by a share consolidation.

Cautionary Statement

This press release contains forward looking statements which are made in good
faith based on the information available up to the time of its approval. It is
believed that the expectations reflected in these statements are reasonable but
they may be affected by a number of risks and uncertainties that are inherent
to any forward looking statement which could cause actual reports to differ
from those currently anticipated.

Investor Conference Call

John Hubbard and David Landless will be hosting a conference call for analysts
and investors at 10.30 hours today (17 November).

Dial in number: [phone]

There will be an encore replay available for 2 weeks

Dial in number: [phone]

Conference Reference: 243100#

For further information, please contact:

Bodycote plc                           Tel No: [phone]            
                                                                             
John D. Hubbard, Chief Executive                                             
                                                                             
David Landless, Group Finance Director                                       
                                                                             
Financial Dynamics                     Tel No: [phone]          
                                                                             
Jon Simmons