Trading Statement, etc.

RENOLD PLC
8 October 1999

                                TRADING STATEMENT

Following the end of its half year's trading, precision engineering group Renold
plc, the leading international manufacturer of chains, gears, couplings, and
machine tools and rotors, is making the following trading statement.

On 14 June 1999 the Chairman stated that, whilst the UK market was still
depressed, there was a clear indication of a bottoming out in order intake, and
the group expected to see a steady improvement in performance as the year
progressed.

In the event, this improvement has not yet materialised. Trading conditions in
the UK in the second quarter have remained more subdued than expected and the
group's UK businesses are, in the main, continuing to experience flat domestic
demand, whilst the further strengthening of the pound is affecting exports. In
addition, the Jones & Shipman businesses, manufacturers of precision grinding
machines, have suffered particularly in the North American market from the weak
demand experienced throughout the international machine tool industry, although
prospects have recently shown some improvement. In mainland Europe, the group's
businesses remain robust, with French automotive systems maintaining their
strong growth and the substantial German chain business also performing well.
However, given the size of the UK operations in relation to the group as a
whole, the current trading levels in the UK will inevitably have an effect on
the outcome for the year.

The group's results for the half year to 2 October 1999 will be announced on 15
November 1999.

Contacts: David Cotterill - Chief Executive             ) Tel:
          John Allan - Group Finance Director           ) 0161-437 5221