Trading Statement

Cookson Group PLC
30 June 2006

30 June 2006

PRE CLOSE PERIOD TRADING UPDATE - RECENT TRADING AHEAD OF EXPECTATIONS

Cookson Group plc ('Cookson'), a leading materials science company, is issuing
this trading update ahead of its Interim Results for 2006, scheduled for
announcement on 2 August 2006.

Highlights

•    Trading in May and June ahead of our previous expectations;

•    Ceramics and Electronics continue to demonstrate good growth; trading
     conditions remain encouraging;

•    Precious Metals in US benefiting from firmer retail markets and impact of 
     2005 restructuring; European operations expected to trade at break-even;

•    Results for six months to 30 June 2006 expected to be very significantly 
     ahead of the corresponding period in the prior year;

•    Positive trading environment expected to continue into the second half of 
     the year.  Impact of cost reduction measures will also continue to benefit
     overall performance.  Second half of 2005 comparatives markedly stronger 
     than the first half setting a tougher comparative benchmark.

Trading - continuing operations

In the trading update given at the Annual General Meeting on 25 May 2006, we
stated that our performance for the year to date was well ahead of the
equivalent period last year.  We can now report that trading in May and June has
been ahead of our previous expectations, particularly for the Ceramics and
Electronics divisions, and, accordingly, results for the first half of 2006 are
now expected to be very significantly ahead of the corresponding period in the
prior year.  Trading profit from continuing operations (after taking account of
the amended treatment for the costs of pension and other post-retirement benefit
plans as noted below) for the first half of 2006 is expected to be not less than
£70 million (first half 2005 comparable: £57 million).  The main end-markets for
our two largest divisions, Ceramics and Electronics, continue to demonstrate
good growth and general trading conditions for these divisions remain
encouraging.  The benefit of the restructuring initiatives enacted in the last
two years is also reflected in an improved trading profit margin performance
compared to the prior period.

Metal market prices (notably for tin, gold and silver), whilst easing in recent
weeks, have been at higher levels in the first half of 2006 than the
corresponding prior year period.  These higher costs are typically passed
through to customers such that absolute profitability is not negatively
impacted.  The principal impacts are to increase reported revenues and working
capital (particularly trade receivables) in our Assembly Materials, Chemistry
and Precious Metals businesses.

Ceramics

Global steel production has continued to accelerate such that production grew by
7.1% in the five month period to the end of May 2006, up from 5.5% in the first
three months of the year.  Growth has been recorded in all major regions with
strong growth in China (19%) and India (17%) and 2% growth in NAFTA and the
European Union.  This growth, combined with the beneficial impact of the
restructuring implemented in 2005 and early 2006, is expected to result in
trading profit in the first half of 2006 being very significantly ahead of the
corresponding prior year period.  All geographic regions are expected to report
improvements in profitability, with the largest improvements being in NAFTA and
the Far East.  The £10 million of new investment in China, announced on 31 May,
will strengthen our already well established position in this growing market and
provide further profitable growth starting in 2007.

Electronics

End-market growth in our electronics markets reflects continuing strong growth
in demand for consumer electronic products, particularly mobile phones, MP3
players, personal computers and digital televisions.  Automotive markets remain
broadly flat in both Europe and the US.

Within the Assembly Materials sector, the transition to lead-free solder, driven
by European Union legislation which becomes effective on 1 July 2006, continues
to increase both revenue and profits such that trading profit for the first half
is expected to be significantly ahead of the corresponding prior year period.
In the second quarter of 2006, 44% of solder revenue is expected to be derived
from lead-free products, up from 37% in the first quarter, with sales of low
silver, lead-free solder continuing to grow.

The Chemistry sector is also expected to see trading profit for the first half
well ahead of the prior year period.  Strong demand for the sector's products
serving the electronics markets, and the non-repeat of the significant copper
damascene de-stocking issue which negatively impacted the first quarter of 2005,
have more than offset the impact of flat automotive markets.

Precious Metals

Trading in May and June was affected by volatility in precious metal prices.
The US continues to benefit from some firming of retail markets and the ongoing
impact of the restructuring implemented in the second quarter of 2005.  The
European operations are expected to trade at break-even for the first half
despite continuing weak retail demand for jewellery.  The restructuring of the
UK operations continues in line with our expectations.

Whilst precious metal prices have reduced significantly from the levels seen in
mid-May, the volatility in prices over the last few months and its potential
impact on retail demand continues to create uncertainty for the division's
trading prospects.

Trading - discontinued operations

The Laminates business traded profitably in the period up to completion of its
disposal on 21 April 2006, reflecting both the restructuring of this business in
2005 and the discontinuation of any depreciation charge as required by its
accounting treatment as a business 'held for sale'.

Cash flow and net debt

The Group's overall cash performance in the first half is expected to be in line
with our previous guidance and to reflect the Group's historic strong
second-half cash generation bias.  Working capital, and in particular trade
receivables, has been negatively impacted by higher metal prices although this
impact has been somewhat offset by the beneficial impact on net debt of the
weakening of the US dollar since year end.  Net debt at 30 June 2006 will also
benefit from £64 million of proceeds from the disposal of the Laminates and
Ceramic Fibres businesses received during the first half.

Pension and other post-retirement obligations

The forthcoming Interim Results will reflect an amendment to the accounting
treatment for the 'interest' element (in effect the non-current service cost) of
the total expense relating to the Group's defined benefit pension and other
post-retirement benefit plans.  This element of post-retirement expense (which
constitutes the net of the interest on the total plan liabilities and the
expected return on the plan assets), which was previously included within
trading profit, will now be included within finance costs.  The post-retirement
expense relating to service cost remains within trading profit.

This reclassification between trading profit and finance costs will have no
impact on profit before tax or earnings per share and complies with
International Accounting Standard 19 'Accounting for Retirement Benefits in
Financial Statements of Employers', as indeed did the previous treatment.   The
amended treatment will reduce the volatility within trading profit from changes
relating to the post-retirement deficit in respect of past service and also
ensures better comparability of Cookson's results with those of its peer group.
For the year ended 31 December 2005, the interest cost was £5.3 million out of a
total expense for defined benefit post-retirement plans of £13.9 million (first
half 2005: £2.8 million and £7.9 million respectively).  The interest cost for
the full year 2006 is expected to be around £5 million.

The increase in long-term corporate bond rates used in the calculation of
post-retirement liabilities combined with the increased level of 'top-up'
contributions agreed with the UK Trustees in February 2006, means that the
Group's total post-retirement deficit is expected to have reduced by over £30
million from £225 million in the period from 31 December 2005 to 30 June 2006.

Outlook

Market conditions generally remain positive, particularly for our two largest
divisions, Ceramics and Electronics.  Furthermore, opportunities for further
cost reduction are being implemented as part of our ongoing restructuring
programmes.  As a result, we expect to see the trends which have improved the
overall performance of our operations continue into the second half of the year.
It should be noted, however, that the second half of 2005 was markedly
stronger than the first half setting a tougher comparative benchmark for the
second half.

FURTHER ANNOUNCEMENTS

Cookson expects to announce interim results for the six months ending 30 June
2006 on 2 August 2006.


FOR FURTHER INFORMATION PLEASE CONTACT

Shareholder/analyst enquiries:
Nick Salmon, Chief Executive                            Cookson Group plc
Mike Butterworth, Group Finance Director                Tel: [phone]
Isabel Vilela, Investor Relations Manager

Media enquiries:
John Olsen                                              Hogarth Partnership
                                                        Tel: [phone]


ABOUT COOKSON GROUP PLC

Cookson Group plc is a leading materials science company operating on a
worldwide basis in Ceramics, Electronics and Precious Metals.

The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramics products for the glass and foundry industries.
It is also the regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.

The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.

The Precious Metals division is the leading supplier of fabricated precious
metals (gold, silver, platinum, etc.) to the jewellery industry in the US, the
UK, France and Spain.  Products include alloy materials, semi-finished jewellery
components and finished jewellery.


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