Trading Update

Carclo plc
10 October 2005



For immediate release                                            10 October 2005

                                    Carclo plc
                            ('Carclo' or 'the Group')

                                  Trading Update

An important US customer of Carclo Technical Plastics, Delphi Corporation Inc.
('Delphi'), petitioned for Chapter 11 protection on Saturday 9th October in
respect of the parent corporation and its US subsidiaries. It is anticipated
that the bankruptcy and associated reorganisation will have a limited impact on
Carclo.

Over the last three years our strategy has been to reduce our involvement with
connector moulding and with Delphi's US operations in particular. We have
successfully focussed on specialist medical customers active in diagnostic
systems where we have a market leading position. Our sales to Delphi US have
been reduced from over £7 million in 2002/03 to an annualised rate of £4.5
million in the current financial year. In anticipation of this bankruptcy filing
we had also reduced payment terms and tightly managed inventory. Accordingly,
our exposure to pre-petition Delphi is limited to a receivable of approximately
£0.5 million. Our US attorney has advised that we should expect some recovery of
this receivable but it will be some time before the amount is known. We will
therefore make an exceptional provision for the full amount in our results for
the half year to September 2005.

We expect to continue trading with Delphi during the reorganisation but will
continue with our strategy of reducing our exposure to US automotive and growing
our specialist medical business.

Excluding the impact of the Delphi receivable provision, trading results for the
half year to September 2005 are in line with our expectations. Carclo Precision
Products has had a good first half benefiting from a continuation of strong
demand for specialist lighting. Carclo Technical Plastics has seen excellent
profit growth in the Czech Republic and China which has compensated for weaker
conditions in the UK and US. Progress on new technologies such as Conductive
Inkjet Technology and soluble capsules for drug delivery has been encouraging.

The group will announce results for the half year to 30 September 2005 on Monday
5 December 2005.

                                    - Ends -

Enquiries:

Carclo plc                                                          01924 268040
Ian Williamson, Chief Executive
Robert Brooksbank, Finance Director

Weber Shandwick Square Mile                                        020 7067 0700
Richard Hews
Susanne Walker

Notes to editors

   • Carclo plc is a global supplier of technical plastic products. It is a
     public company whose shares are quoted on the London Stock Exchange.

   • 65% of sales, on a pro forma basis, are derived from the supply of fine
     tolerance, injection moulded plastic components, which are used in medical,
     telecom and electronics products. This business, Carclo Technical Plastics,
     operates internationally in a fast growing and dynamic market underpinned 
     by rapid technological development.
 
   • 35% of sales, on a pro forma basis, are derived from the supply of
     products to the automotive and aerospace industries.

   • Carclo's strategy is to grow rapidly in low cost manufacturing regions
     and to develop new technologies and products to underpin future growth.





                      This information is provided by RNS
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