Trading Statement

Zotefoams PLC
21 November 2001

November 21st 2001


Zotefoams plc


                              Trading Statement


At the time of the Group's Interim Results on the 14th August 2001, Zotefoams
stated that good levels of sales growth were anticipated, but that this was
dependant on economic conditions, forecasts for which remained mixed.



Against these expectations the Group is now experiencing a shortfall in sales
caused by worsening economic conditions. This is particularly the case in
continental Europe where underlying demand is now anticipated to be lower than
original projections. A similar effect is being experienced in North America,
although a more limited exposure gives a smaller impact on Group
profitability.



The Croydon site, which was struck by a fire in October last year, continues
to make progress towards a full recovery, although this is now not expected
until late 2002 due to construction constraints. Since 30th June 2001 an
additional £750,000 has been received from insurers in respect of plant and
equipment damage. A preliminary business interruption claim has now been made
and is under discussion with the Group's insurers. In the 2001 Report and
Accounts the effect of the fire will be reported as an exceptional item with
the impact on both this and operating profit dependant on the outcome of
discussions with insurers.



The Board believes that the combined effects of these factors will lead to
profit before tax (excluding exceptional items) being materially below market
expectations for the year ending 31st December 2001.



Enquiries:



Zotefoams Plc

020 8664 1600

David Stirling, Managing Director



Financial Dynamics

020 7831 3113

Charlie Armitstead