Trading Statement

Churchill China PLC
26 October 2000



                             CHURCHILL CHINA PLC

                 PERFORMANCE BETTER THAN MARKET EXPECTATIONS


Churchill China plc is pleased to report that trading in the second half year
to date has been above expectations expressed at the Group's interim results
announcement on 5th September 2000.


The improved performance arises largely from continued progress in the Group's
Dining In division where sales to promotional markets in the North America
have been higher than the corresponding period last year.  Good results also
continue to be achieved in the divisions outsourcing operations and in James
Sadler which was acquired earlier in the year.  Forward order books in Dining
In are now firm to the year end and indicate that the progress demonstrated at
the half year is continuing in the second half.


The changes to strategy and manufacturing levels implemented in June 1999 were
designed to substantially improve the performance of the Dining In division
and the benefits arising from these changes are being realised more quickly
than initial market expectations envisaged.


Trading in the Dining Out division continues in line with our expectations
but, as normal, the full year outcome in this business remains dependent on
sales during the key pre-Christmas season.


For further information, please contact:

Stephen Roper, Chairman
Churchill China                  Tel: [phone]


Tim Anderson
Buchanan Communications          Tel: [phone]