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Elementis PLC (ELM)

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Wednesday 12 June, 2002

Elementis PLC

Trading Statement


12 June 2002

                         ELEMENTIS plc TRADING UPDATE                          

Elementis today issues a trading update ahead of the Group's interim results
for the six months ending 30 June 2002.

Overall market demand continues to show little sign of improvement. At the
Annual General Meeting in April, we said that sales on continuing operations in
the first three months declined by 7 per cent compared with the equivalent
period last year. During the current quarter we see little evidence of demand
growth and therefore, sales on continuing operations for the first half of 2002
are expected to be lower than the first half of 2001.

The preliminary results announcement in February 2002 stated that Elementis
would benefit in the first half of 2002 from lower energy costs, rigorous
measures to reduce inventory levels and tight control of all areas of costs and
capital expenditure. This has indeed been the case and, as a result, operating
profit before goodwill amortisation and exceptionals on continuing businesses
in the first half of 2002 is expected to be close to that of the first half of
2001.

These cost trends and initiatives are expected to continue in the second half
of 2002. In addition, while sales in the second half are typically lower than
the first half due to seasonal effects, we do not anticipate a repeat of the
extreme levels of customer destocking that took place in the last quarter of
2001.

The interim results announcement will be made on 31 July 2002.

                                   - Ends -                                    

Enquiries

Elementis 01784 224212

Brian Taylorson Finance Director

Anna Passey Head of Corporate Communications

Brunswick 020 7404 5959

Andrew Fenwick

Rupert Young