Trading Statement

Harrier Group PLC
7 June 2002


                              HARRIER  GROUP  PLC

                       Trading statement and resignation

                          of a non-executive director


Whilst Harrier Group Plc ('Harrier' or 'the Company') started the year with a
strong prospect list and high levels of activity, these have not produced the
expected level of order intake during the year to date.  As a result, turnover
for the current year will be below expectations and the directors of Harrier ('
the Directors') expect that the Company will incur a trading loss in the first
half of the current year.

As a result of the current downturn in market activity throughout our industry
and the resultant slowdown in our order intake, management has carried out a
review of the current structure of the business and implemented an overhead
reduction programme which will result in permanent cost savings of approximately
£1.5 million on an annualised basis, plus expected temporary cost savings for
the current year of up to £150,000.

At current levels of business, the Directors expect that these overhead savings
will enable the Company to return to profitability during the second half of the
year.

The permanent cost savings relate to staff redundancies and a reduction in other
operating costs.  The temporary cost savings relate to director and employee
salary reductions of up to 50% for the period commencing 1 June 2002 until 31
December 2002.  Salary levels will be reviewed by the board of Harrier in
January 2003 in light of the Company's current trading and prospects at that
time.  As compensation for these salary reductions, the board of Harrier has
conditionally agreed to cancel all employee share options granted since
flotation, and issue new options over the same number of shares to certain
executive directors and all employees.  This cancellation and re-issue of
options will be conditional on the relevant Director or employee agreeing to
participate in this salary reduction scheme.  The number of shares currently
held under option that are eligible to be re-issued total 1,703,000. It is
intended that these options will be granted on 1st July 2002 at the market price
prevailing on that date and will be exercisable after 31st December 2003.

As a further incentive to participate in the salary reduction scheme, the board
of Harrier intends to issue additional share options to all Directors and staff
who agree to a reduction of more than 5% of their base salary. The basis for
granting these further options will be 5,000 new shares for each £1,000 of
salary sacrificed between June and December 2002.

The following options to Directors will therefore be cancelled and additional
options issued.  All options will be exercisable from 1 January 2004 to 1 July
2012:

                        Options being cancelled    New options being granted

Name                         Number Exercise price       Number  Exercise price     Total number of options
                                             pence                        pence      expected to be held on
                                                                                                1 July 2002

D Cheesman                  250,000          76.50      395,835           To be                     395,835
                                                                  determined on
                                                                       1/07/021
S Carter                     50,000          76.50       64,583           To be                     195,133
                                                                  determined on
                                                                       1/07/021



1.   Based on the closing mid market price of Harrier ordinary shares on 1 July 
     2002.

As part of the overhead reduction programme, Mr B P Wrighton has agreed to
resign as a non-executive director with immediate effect and we thank him for
his efforts and contribution to the Company during his period in office. In
addition, Mark Rowlinson has agreed to become part-time.

Whilst short term trading is difficult the Directors continue to look forward to
the future with confidence.


Enquiries:

Harrier Group Plc                                      01256 382812
Bob Morton
David Cheesman


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