Trading Statement

SIG PLC
14 January 2003

                                 TRADING UPDATE
                               14th January 2003



SIG plc, the international specialist supplier to the construction, building and
industrial markets, issues the following trading update in advance of its
preliminary results for the 12 months ending 31st December 2002, which will be
announced on Tuesday 11th March 2003.



Key points

•  Results in line with market expectations for the year, despite incurring
   rationalisation and restructuring costs of approximately £2 million.
  
•  Record sales achieved in excess of £1,150m, up over 10% on prior year.

•  Sales ahead of prior year on a like for like basis in all three geographic
   regions (UK and Eire, mainland Europe, USA) in local currency, an increase of
   approximately 3% for the Group as a whole.

•  As anticipated, trading in the second half was more encouraging than in the 
   first 6 months of the year.

•  Cash flow strengthened progressively throughout the year, with year end
   gearing and interest cover at healthy levels and in line with expectations.



UK and Eire

Sales in this region represent approximately 65% of Group turnover.  All three
main product sectors of insulation, roofing and commercial interiors saw
increases in sales, which in total were up over 14% on the prior year, largely
as a result of the beneficial effect from acquisitions.  Overall, like for like
sales growth was achieved, with increases in both the insulation and roofing
sectors more than offsetting the decline in commercial interiors.  Whilst like
for like sales in commercial interiors were slightly down on prior year in the
second half, the decline was lower than occurred in the first half.



Mainland Europe

Sales in mainland Europe, which account for approximately 30% of Group turnover,
increased on a like for like basis in Germany, France and Poland in local
currencies.  Turnover also increased in The Netherlands as a result of the
acquisition made in March 2002.



USA

Sales in this region, which account for approximately 5% of the Group total,
increased in local currency chiefly as a result of the new branch openings mid
year.



Outlook

During 2002 the Group continued to invest to create opportunities for long term
growth.  The strength and resilience of the business has again been demonstrated
by the increase in sales turnover achieved, despite very difficult conditions in
a number of markets in which the Group operates.  Cash flow is strong and the
group is financially robust.



Looking forward, market conditions are not expected to change materially in the
current year.  Actions have been taken to improve efficiencies and reduce costs,
and the Group is strategically well placed with leading positions in all its
main markets.  The Board is confident that progress can be achieved and
shareholder value increased.



Enquiries:

David Williams, Chief Executive                SIG plc           0114 285 6306
Gareth Davies, Finance Director
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 [phone] and the call Chairman is David Williams.




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