Trading Statement

Trifast PLC
6 February 2002


Issued By Citigate Dewe Rogerson, Birmingham

Date: Wednesday, 6 February 2002

     Embargoed 7.00am


                                  Trifast plc

                                 Trading Update

We indicated at the time of our interim results in November that trading
remained challenging and with the lack of visibility it was difficult to
forecast going forward. At the same time, we believed that, if there was no
further deterioration in the TMT sector during the second half, coupled with the
cost reduction programmes being implemented the Group would achieve an improved
result in the second half of the financial year.

Although sales activity has broadly stabilised, our gross profit continues to be
affected, not by our basic buy/sell margin that has remained relatively
constant, but by losses in our UK manufacturing businesses (caused by excess
capacity and lack of throughput), and our aggressive stock write-down policy. In
addition, market conditions have been flatter than originally anticipated in our
US and Western European market sectors, which, together with excess stock and
inventory in the supply chain has hampered progress. This has been reflected in
the trading results for the combined trading period for December and January,
which historically has been the main pointer to our final quarter's performance.
During the second half, we have continued to reduce inventory and to generate
cash.

We have reacted quickly to the weakening trading environment by both reducing
our operational costs whilst redeploying key sales and marketing resources not
only into new sectors (e.g. defence) but also into the production and design
departments of our existing OEM (original equipment manufacturer) multi-national
customers and their SCM's (sub contract manufacturers) in order to gain global
vendor approval for Trifast products and logistics. This is why enquiry levels
remain encouraging and dialogue is being created with third parties on a number
of new significant business opportunities both within and outside our
traditional business sectors in America, Europe and Asia.

Whilst it is difficult to accurately predict the trading outcome for the year as
a whole, current indications are that the Group's pre-tax profits for the second
half of the current financial year, (pre-goodwill and closure costs) will be
around half the £1.3 million reported in the first period.

The Directors believe that there is scope for further rationalistion which,
combined with tangible opportunities that exist for the Group, should achieve a
much-improved trading performance in the 2003 financial year. As the Group
continues to generate cash and profits, the Board still expects to recommend an
appropriate final dividend at the time of its preliminary results for the year
ending 31 March 2002 which are expected to be announced on 24 June 2002.

Enquiries:
Malcolm Diamond, Chief Executive
John Wilson, Group Finance Director
Jim Barker, Chief Executive Designate                     Fiona Tooley

Trifast plc                                               Citigate Dewe Rogerson

Tel: Today: 020 7282 8000                                 Tel: Today: 020 7282 8000
Thereafter: 01825 747600                                  Thereafter: 0121 455 8370
Mobiles: 07979 518493 (MMD)                               Mobile: [phone]

        07711 103915 (JW)

        07769 934148 (JB)



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