Trading Statement

SIG PLC
10 January 2008



                               TRADING STATEMENT
                                10 JANUARY 2008

SIG plc, the leading supplier of insulation, roofing, commercial interiors and
specialist construction products, issues the following trading update for the
year ended 31 December 2007, in advance of the preliminary results which will be
announced on 13 March 2008. All figures stated throughout this statement exclude
the USA business, which was sold in November 2006.

Strong organic growth, together with the impact of the on-going acquisition
activity, produced record sales and profits in 2007. Total sales for the year
were c.£2,450m, an increase of approximately £590m (32%) over 2006 (£1,860m).
Like for like * sales growth was c.10.8%.

Underlying ** profit before tax is expected to be not less than £139m, an
increase of approximately £30.7m (28.3%) on 2006 (£108.3m), and ahead of
analysts' consensus expectations.


UK and Ireland (c.62% of Group Sales)

Total sales increased by c.21% over prior year, with like for like growth
c.9.5%. Operating profits were significantly ahead of 2006.

Good levels of growth in sales and operating profits have been achieved in all
four key business streams, i.e. Insulation, Roofing, Commercial Interiors and
Specialist Construction Products.

As reported in September 2007, insulation demand from the new-build sector is
beginning to reflect the new higher standards set by the 2006 change to the
Building Regulations (Part L).


Mainland Europe (c.38% of Group Sales)

Total sales in Mainland Europe increased by c.53%, with like for like growth
c.13% in Sterling and c.12% in local currency. Operating profits were
significantly higher than prior year.

Sales and operating profits were significantly increased in total and on a like
for like basis in all countries in which the Group has trading operations, i.e.
Germany and Austria, France, Benelux and Poland. The newly acquired operations
in Slovakia and the Czech Republic traded profitably.


Acquisitions

During 2007 the Group had a record year of acquisition activity, completing 27
transactions for a total consideration including assumed debt of c.£325m.
Combined annualised sales on an historical basis amounted to c.£440m. Of this,
£300m is in Mainland Europe and £140m in the UK and Ireland. Of the c.£440m
annualised sales, c.£220m impacted 2007.

These businesses are being successfully integrated into the Group and are
trading in line with our expectations.


Trading Sites

In 2007 the Group increased the number of trading sites by 161 to 779
(31 December 2006: 618).


Outlook

The Group has strong positions in the markets and countries in which it trades
with experienced operational management throughout its activities and has strong
operational cash flow and sound finances.

The Board believes that the Group's largest single product group, that of
insulation and related materials, will continue to increase in demand at a
faster rate than other building materials due to the now global drive to reduce
energy consumption. Over time, we expect to see further increases in regulations
and other initiatives introduced to stimulate demand for insulation. In the UK,
we are presently investing to increase capacity to meet the expected increased
demand driven by the new scheme for upgrading insulation in existing homes,
which begins in April 2008 and runs for three years.

There is a significant range of other expansion opportunities, both organic and
acquired, being actively pursued. The number of trading sites has increased
substantially over recent years in the UK and Ireland and in Mainland Europe.
This programme of greater density and coverage of trading sites is planned to
continue.

The product range has also been extended year on year in the Group's core
businesses, and through the development of new business streams. This programme
of product range expansion is planned to continue.

The Board believes that the substantial pipeline of work in progress of
fully-funded public and private non-residential construction programmes will
continue to provide opportunities. The Group's bias towards non-residential
construction together with its growing geographic diversity will be helpful
going forward.

In summary, the Board believes that the on-going programmes of expansion, both
organic and through acquisition, will enable SIG to continue its track record of
outperforming market conditions. The Group is in excellent shape and the Board
is confident of further progress in 2008 and beyond.


Definitions

* 'Like for like' is defined as the business excluding the impact of
   acquisitions made since 1 January 2006.

** 'Underlying' is before the amortisation of acquired intangibles and hedge
    ineffectiveness.


Enquiries
David Williams, Chief Executive      SIG plc         Today: 020 7251 3801     
Gareth Davies, Finance Director                 Thereafter: 0114 285 6300
 
Faeth Birch / Gordon Simpson         Finsbury               020 7251 3801



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