AGM Statement

600 Group PLC
04 September 2002


Wednesday, 4th September 2002

     
                               The 600 Group PLC

                      CHAIRMAN'S STATEMENT TO THE 2002 AGM

As anticipated in the preliminary results announcement in June, the
international machine tool markets during the first few months of the year have
continued to be in  recession as a result of the world-wide economic
uncertainties.

Although there was evidence of a small increase in manufacturing activity and
improved sentiment in the first quarter, our trading to date shows a
continuation of the levels of business experienced during the second half of
last year.

There are indications that our markets in general may have bottomed out and that
enquiry levels are starting to increase in some businesses, but we do not expect
any significant recovery in the general machine tool market for some time.

In the 600 Group, following the major cost reductions achieved in the second
half of last year, we will continue to align our cost base with the prevailing
trading conditions.

Although turnover and profits have been under severe pressure as a result of the
depressed markets, we have used our strong financial position to maintain
extensive product development programmes at our manufacturing companies,
resulting in impressive exhibitions in the UK in May and in Chicago this week.

Our ongoing programmes of increased international procurement are progressing
very well with products due to come on stream later in the year.

Despite the current difficult trading conditions, we continue to maintain a very
strong cash position and to undertake initiatives that I believe will enhance
shareholder value in the medium term.


                                     -ENDS-



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