Trading Statement

SIG PLC
12 July 2002

                               TRADING STATEMENT
                                 12th July 2002

Ahead of reporting Interim Results on Monday 2nd September 2002, SIG, Europe's
leading supplier of Insulation, Roofing and Commercial Interiors products, today
issued the following update on trading for the six months to 30th June.

The Group has continued to perform well and sales during the period  of over
£535m represent an increase of approximately 8% compared with prior year.

However, market conditions in some of  the overseas areas and in respect of
Commercial Interiors have been difficult, leading the Group to expect to report
interim operating profits, before goodwill and interest, slightly below the
first six months of 2001.

Goodwill amortisation and interest charges are up on the prior period, in line
with expectations.

UK and Eire

Total sales in the UK and Eire grew by around 14%.  This includes organic growth
and the benefit of recent acquisitions.

Organic growth was achieved in both the Insulation and Roofing divisions, and
the acquisition of Proos Roofing Supplies, announced in March 2002, also added
to the growth momentum in this sector.  The Group's activities in Insulation and
Roofing have benefited, to some extent, from the buoyant conditions in the new
build and refurbishment domestic housing markets.

In March at the Preliminary Results announcement and again in May at the AGM,
the Group reported that it was experiencing a downturn in demand from the
commercial property market, adversely affecting sales chiefly within the
Commercial Interiors division.

Excluding the impact of the acquisition of Capco, which was announced in
September 2001, Commercial Interiors sales in the first half are  below prior
year.  Within this, the sales of added value, high specification products have
been affected most, causing a disproportionate impact on profits.  There have
been no signs of any improvement in this sector so far this year.

Europe

Overall, sales in mainland Europe were flat compared with the first six months
of 2001.  France was slightly ahead and Germany down by less than 1%, in a
market which is considered to have declined by at least 6%.  Poland achieved a
small sales increase, whereas in the Netherlands, where the majority of the
Group's business has been sharply focused on the Commercial Interiors sector,
sales declined.

USA

Sales were slightly down when measured against the particularly strong first
half of 2001, although they are up on the  figure for the second half of 2001.

Three new greenfield trading sites have been opened in the last two months in
the US and associated costs taken in the period.

Board Changes

After seventeen years of outstanding service with the Group, Frank Prust is
stepping down as Finance Director and as a member of the Board on medical
advice.  Frank has been largely responsible for establishing the tight financial
controls and prudent accounting disciplines applied within the Group.

This development has been anticipated and, following an extensive review of
possible candidates to succeed Frank, the Board is pleased to announce that
Gareth Davies, presently Group Financial Controller, will take over as Finance
Director on 1st August 2002.

Gareth has been with the Group since 1993 and has worked very closely with Frank
on all aspects of finance during that time.  He has effectively headed this
function for the last twelve months during Frank's enforced absence due to ill
health.

Acquisitions

In March, we announced the acquisition of Proos, which added nineteen further
branches to our leading position in the UK Roofing Supplies market.  As part of
the ongoing strategy of strengthening the core businesses, the Group has made
three further bolt-on acquisitions in the UK and the Netherlands. These
businesses are all integrating well into the Group.

Outlook

The Group continues to expect some benefit from the new UK insulation
regulations towards the end of the year, together with further progress in
Roofing.  Against this, market conditions in the Commercial Interiors market,
both in the UK and overseas, are yet to show signs of improvement.  Certain
changes are being made to the product range to help counter this, but the Group
does not expect to recover the shortfall against budget within this sector that
has occurred in the first half.  In these conditions, progress in 2002 is
expected to be less than originally anticipated.

The Group is confident of the medium and longer term growth prospects across all
its existing activities.  The balance sheet and finances remain strong and the
programme of investing in core businesses, combined with targeted acquisitions
continues.

Enquiries:
David Williams, Chief Executive                  SIG plc           0114 285 6306
Faeth Birch / Gordon Simpson                     Finsbury          020 7251 3801


•   Further information is available from SIG's website www.sigplc.co.uk

•   A conference call to discuss the trading update will be held at 9.00 am 
    today.  The dial in number is 020 8240 8241 and the Chairman is 
    David Williams.





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