Trading Statement

27 February 2009
                          Lupus Capital plc

                     Pre Close Trading Statement


Lupus Capital plc ("Lupus" or the "Company") announces a pre close
trading statement on the financial year ended 31 December 2008, an
update on its current trading and its debt position.

Lupus reports that its results for the 12 months to 31 December  2008
will be satisfactory, particularly bearing in mind the financial  and
economic turmoil  during the  period, and  will be  in line  with  or
exceed current average analysts' 2008 expectations.

The majority of Lupus' businesses are manufacturers and suppliers  to
the door and window sector mainly for the refurbishment, and less so,
for the new build markets in the USA and Europe.   The Company's main
products are locks, seals, hinges, handles, doors and balances.

Throughout 2008  the  US  market  declined  significantly.   Then  in
Europe, starting with Spain followed later by the UK and finally  the
rest of Europe, our  customers cut back on  orders.  Both in  advance
of, and in response to, these conditions we have taken very  decisive
actions to  cut our  costs accordingly.   Both staff  and shop  floor
personnel have been reduced and temporary labour let go.    Overheads
have been lowered and factories consolidated or rationalised.   Short
time working practices have been  instigated and wages frozen.   Cash
has been generated from working capital reductions (although  reduced
credit insurance  terms have  limited this)  and capital  expenditure
sanctioned only if necessary.    Fragile customers are  sold to on  a
cash only basis where appropriate  (although regrettably we have  had
some bad debts).  Input costs have been renegotiated.  These numerous
actions have ameliorated profit reductions in comparison to 2007.

Gall Thomson Environmental, which manufactures products primarily for
the oil and gas  sector, has had  another excellent performance.   At
the year-end order  books were  solid both in  marine and  industrial
breakaway couplings.

In relation to  our group  debt, the  dollar to  pound exchange  rate
changed rapidly last year by over 25% from $2.1 to around $1.5 to the
pound.  We  comfortably  met all  our  interest and  debt  repayments
during 2008.  However, the  group's net debt increased  significantly
in sterling terms when translated at  the year end exchange rate  and
this increase, upon translation, was greater than that of the group's
dollar earnings measured in sterling at the average exchange rate  of
the year.  This issue, which is relevant to the debt taken on for the
Laird division acquisition, has brought us to enter  into discussions
with our  bankers,  who  are  supportive  and  understanding  of  the
situation.  Together, we are re-examining and renegotiating our  debt
facilities and banking covenants  to more appropriate levels  through
2009 and beyond.  It  is anticipated that  these discussions will  be
successfully concluded prior to the announcement of the 2008  results
due on 29 April  2009 and will likely  result in certain  exceptional
costs arising.   Revised  banking  facilities  will  reflect  current
market conditions.

All our businesses have generated good cash flow during 2008 enabling
us to service our interest costs and to meet our debt obligations  as
they fell due.

The general economic climate for  2009 is still very uncertain.   The
oil and gas services sector remains good, despite the recent declines
in the oil price. The US housing environment continues to decline and
the European building components market  is following the US  trends,
albeit  delayed.   These  business   conditions  require   continuous
monitoring and control of our cost base.

Given the uncertainty in our building products end markets, the Board
believes  that  predicting  the  2009  outcome  is  difficult.    Our
businesses both  in  the  US and  Europe  face  unprecedented  market
conditions which may continue to deteriorate for a while longer.   We
are confident that  we have  excellent management teams  who will  be
reacting to these market forces and maximising profitability and cash
generation.

For Further Information:

Lupus Capital plc
Greg Hutchings                                   Tel: [phone]
8000


Collins Stewart Europe Limited
Mark Dickenson / Stewart Wallace    Tel: [phone]

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