AGM Statement

Bodycote International PLC
28 May 2003


Embargoed until 15:05 on 28 May 2003


                         AGM STATEMENT - 28 MAY 2003


The following is the text of the statement delivered by the Chairman, James
Wallace, at this year's AGM

On 18th March we indicated that trading had started the current financial year
at a marginally lower level than that of 2002 with almost all markets we serve
softer than at the same time last year.  We have, however, been successful in
winning new business in the commercial market and further outsourcing contracts.
Consequently cumulative sales are now running at the same level as last year.

The weakness of the US Dollar and strength of the Euro have broadly offset each
other.  In local currency terms UK/European sales are 4% ahead of last year
reflecting new contract wins, while North America is down 7% primarily due to
the continuing slowdown in Aerospace and Power Generation.

Overall, Heat Treatment and Coatings sales remain flat.  The HIP SBU continues
to be impacted by weak demand from its end markets.  Materials Testing continues
to show growth.

The full benefits of the cost savings we have achieved from the successful
implementation of our rationalisation programme are being masked by the change
in sales mix and pressure on margin and costs.

Automotive (particularly in North America), Power Generation and Aerospace
markets are forecast to soften but we anticipate the effect will be offset by
our continuing success in winning new business.  The Board confirms that trading
is currently in line with its expectations and, with the focus on capital
expenditure reduction and cash generation, a modest reduction in debt is
anticipated.


For further information, please contact:

John D. Hubbard, Chief Executive
David Landless, Finance Director
Bodycote International PLC                            Tel no:  01625 505300

Jon Simmons / Meg Baker
Financial Dynamics                                    Tel no:  020 7831 3113



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