Trading Statement

Flomerics Group PLC
19 October 2001


                             19 October 2001



                            FLOMERICS GROUP PLC

                             Trading Statement

When the Company announced its Interim results at the end of July, it
cautioned that the business would not be invulnerable to a further
deterioration of the global economic situation. During the third quarter the
Company has experienced a significant slowdown in gaining new business and
September was particularly poor following the tragic events in the US on
September 11th.

The results for the year are, as always, very dependent on significant
renewals of licences as well as new business in the fourth quarter and
particularly in December with regard to renewals. Most of the Company's large
corporate customers have renewed, or are expected to renew, their licences at
an equivalent or higher level to last year and the Company has also made some
important gains with other major customers at the expense of the competition.
The slowdown has been most evident in new business where it has proved more
difficult to obtain first-time commitments from new customers. As a
consequence the Board now expects that revenues for the full year to 31
December 2001 will be approximately £1 million below the current market
expectations of £13.8 million.

In view of the weak global economic conditions the Board has taken a cautious
view on the prospects for revenue growth in 2002 and has decided to reduce
staff numbers accordingly. At the end of September the Company employed 157
staff; this number will be reduced to about 134 by 31 December 2001. The staff
reductions will take place in a number of areas in the UK, the US and other
overseas offices.

The cost of redundancy packages means that the reduced staffing levels are not
expected to have an impact on the profit in 2001. As a result, the Board
currently expects that the profit before tax to 31 December 2001 will be
reduced in line with the revenue shortfall discussed above. Cash funds remain
healthy at £1.3 million at the end of September.

The fundamental strengths of the Company remain unchanged and the directors
believe that a modest improvement in trading conditions should enable it to
return to a reasonable rate of growth. The technology trends that have driven
the recent growth - accelerating demands for speed and functional densities -
continue to underlie developments in all classes of electronics equipment. And
these, as the Company has pointed out, lead to intensified thermal and EMC
problems, and hence increasing demand for Flomerics' two primary products,
FLOTHERM and FLO/EMC. Therefore, while the immediate market uncertainty makes
short-term prospects difficult to assess, the Board is confident that
Flomerics is in a strong position to benefit from the market recovery when it
occurs.



For further information please contact:

Flomerics:                                                 020 8941 8810
David Tatchell, Chief Executive
Chris Ogle, Finance Director

Teather & Greenwood:                                       020 7426 9073
Richard Thompson

Buchanan Communications:                                   020 7466 5000
Nicola Cronk