Trading Statement

Ricardo PLC
11 July 2006


11 July 2006
                                  Ricardo plc
                               Trading Statement

Ricardo plc is the leading UK independent automotive consultancy, employing over
1,800 people. The company has centres in the UK, USA, Germany, Czech Republic
and Asia and the client list includes the world's major automotive OEMs.

Today the Board of Ricardo plc is providing a trading update, before the Company
enters the close period in respect of the year ended 30 June 2006. Ricardo will
announce its Preliminary Results on Monday 18 September 2006.

Since the announcement of our interim results in February, overall trading for
the second half has been in line with our expectations, with improving
performances in both Germany and the UK.

Whilst the automotive market continues to be challenging in Europe and North
America, we are seeing an increasing number of opportunities from Asia,
particularly China and Japan. Our order book has increased from £67m at the half
year to over £70m with a good balance across all of our engineering consultancy
divisions.

Our UK business has had a particularly strong second half with an increasing
demand for transmission projects coupled with the developing relationship with
SAIC Motor Company Ltd and other Asian clients.

In Germany, our continuing investments in high quality engineering staff, state
of the art facilities and Ricardo processes aimed at increasing our added value
capability, are bearing fruit. In the period, we have secured long term
contracts to fill our new test beds and have secured the largest ever orders for
our Germany engineering business from three major German OEM's. On the niche
exhaust business, following a difficult year of start up delays, we have now
commenced production of a multi year high profile programme. These investments
and resulting developments have put us in a more encouraging position as we
start the new year.

In North America, trading continued at a good level in the second half as we
develop the truck and military markets with less dependence on passenger car and
the order book has strengthened significantly.

Strategic Consulting has had an exceptional year and as anticipated, revenue
reduced in the fourth quarter following the completion of the three major
projects referred to in our February announcement.

Our pensions deficit is expected to reduce following a year of better than
expected returns from equities and an improving bond yield.

Overall, 2006 has been a year of improved profitability, margins and cash
generation. We are confident of the prospects for the new financial year.

Enquiries:

Ricardo plc                                        Tel: [phone]
Dave Shemmans, Chief Executive
Andrew Goodburn, Finance Director
www.ricardo.com

Gavin Anderson & Company                           Tel: [phone]
Fergus Wylie/Charlotte Stone




                      This information is provided by RNS
            The company news service from the London Stock Exchange
                 GMU