Chairman's Statement

Camellia PLC 29 June 2000 The following Statement was made by the Chairman of Camellia Plc at the Company's Annual General Meeting held today. Climatically the year has started quite favourably for our tea estates everywhere, except for those in Kenya. The rainfall pattern in North India and Bangladesh has been conducive to growth and at mid-June, production on our tea estates was comfortably ahead of last year. In Malawi the drought experienced at the end of 1999 continued through January, but since then rainfall has been reasonable, and production is ahead of last year at this time. In Kenya, however, our tea production has been very hard hit by last January's unprecedented frost, followed by a drought which has still not properly broken Tea market price levels since the turn of the year have remained disappointingly low, especially in Bangladesh, and a significant improvement will be needed if increasing production costs are to be offset. In price terms coffee is also going through a very difficult period, although this year's coffee crop at Kakuzi is promising. Our citrus and wine grape subsidiary in Australia is not expected to be able to repeat its exceptionally good results of 1999, and recent torrential rainfall may cause problems for our grape and citrus property in Chile. In the UK, Duncan Lawrie Ltd is continuing to do well, as indeed is Lumley Cazalet Ltd. Linton Park's engineering activities continue to experience the knock-on effect of the strong pound and a shortage of orders from offshore oil-related activities, but the food, storage and distribution businesses are performing marginally ahead of last year at this time. Our Swiss associate, Siegfried AG, is also progressing well. The prospects for the current year as a whole will be clearer when the interim results are announced in September. Compared with a year ago, the general outlook is at present quite encouraging, but this is subject to weather and there being no further significant downturn in the prices of our principal agricultural and horticultural products. P.E. Hill Company Secretary 29th June 2000

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