Current Trading Update

Morgan Crucible Co PLC
29 October 2001

                       The Morgan Crucible Company plc

                            Current Trading Update

Morgan announced its results for the first half of 2001 on the morning of
September 11th.  We stated that our order intake during July and August left
us with continued market uncertainty and gave no clear indication of a second
half recovery.  Further, we said that under such circumstances, we believed it
appropriate to be cautious.

The tragic events of later that day have had a considerable effect on our
customers' confidence leading to order deferrals and poor September trading.
The absence of both our normally strong September and any improvement in
customer confidence through October has added to the uncertainty.  At the
presentation of our interims we expressed caution at the prospect of a
European softening, particularly in Germany. We hoped that this would not
follow the pattern we had seen in the USA in the first half.  Regrettably that
softening has occurred and the resultant projected profit downturn takes us
substantially below current market expectations.

Morgan has acted consistently during the year to reduce its cost base.  Under
the current unprecedented and difficult circumstances, it is clearly
appropriate to take further action.  A detailed review is now in progress
which will incorporate site downsizing and rationalisation worldwide as well
as further business disposals.  We will seek to minimise the impact of
restructuring on overall debt next year through such disposals.

Despite the more difficult conditions experienced in the second half we are
comfortable with our borrowing capacity and the covenants under which we
operate.

We will provide a further trading update and the details of our cost reduction
programme early in the New Year.

29th October 2001

Dr. E. B. Farmer, CBE, Chairman
Ian Norris, Group Chief Executive
On behalf of the Board

Registered Office:
Morgan House
Madeira Walk
Windsor
Berkshire SL4 1EP
Registered in England number 286773

Enquiries:
Ian Norris, Group Chief Executive   01753 837000
David Davies, Finance Director

Locksley Ryan, Harry Chathli, Brunswick   020 7404 5959