AGM Statement

Cropper(James) PLC
21 July 2004

Issued by Citigate Dewe Rogerson Ltd, Birmingham
Wednesday, 21 July 2004

IMMEDIATE RELEASE

                                James Cropper PLC
                             Annual General Meeting

At today's (21 July 2004) Annual General Meeting, James Cropper, Chairman told
shareholders:

'I am pleased to report that the recovery of the Group in the second half of
last year has continued into the opening quarter of the current financial year.

'Recent sales growth within James Cropper Speciality Papers, both in UK and
export markets reflects encouraging progress against the new marketing strategy
with activity up in the packaging, business and industrial paper sectors.
Although pulp prices have been on an upward trend, prices now appear to be
moderating for the time being at least with Northern Softwood Bleached Kraft,
the market benchmark, reaching an apparent peak of US$680 per tonne in June. As
I highlighted in my preliminary results statement in June, the recent escalation
in the price of crude oil, natural gas and wholesale electricity will have a
significant impact on energy costs in the current year, particularly during the
winter months. The average cost of natural gas in the opening quarter was 21
pence per therm, against 17 pence per therm in the same period last year.

'The Paper Mill Shop retail business continues to make good progress. Two
further outlets have opened this year in Spalding and Belfast, with the 14th
opening next week in Ashford, Kent. More stores will follow during the course of
the year. In order to manage the expansion of this business, warehousing and
distribution activities will relocate to a larger facility in the autumn.

'Technical Fibre Products ('TFP') had an improved first quarter performance on
last year, despite the adverse impact of the weaker US$ on export margins, with
demand for fire protection and composite materials continuing to grow. Recently,
the Department of Trade and Industry has given encouragement to the fuel cell
programme by awarding funds to assist research and development by TFP, Johnson
Matthey and other UK companies to ensure that the UK becomes a world centre for
fuel cell technology.

'Although volumes in the James Cropper Converting are ahead of expectation,
profitability continues to be affected by competitive pressure on display board
prices and the impact of the weaker US$ on sales of mount board to the USA.
Mount board volumes are expected to increase in the autumn.

'In the previous financial year, overall Group trading activity generated a
surplus of US$s and a deficit of €s. The Group's profitability was adversely
affected as a consequence of the weakening of the US$ and the strengthening of
the €. To reduce the imbalance of currency flows, certain supplies have been
switched from being € denominated to US$ denominated. The annualised impact of
these changes will be felt in the current financial year.

'Early indications suggest that our plans to grow sales in Speciality Papers are
being achieved and The Paper Mill Shop will continue its impressive performance
and expansion. The Paper Mill Shop extends our strategy of related business
diversification. In an increasingly competitive world, our portfolio of niche
businesses, built on strong materials technology and technical expertise, places
the Group in a good position to develop and exploit future opportunities.
Despite the current difficulties relating to energy prices, pulp and exchange
rates we are encouraged by the progress so far.

Enquiries:
Alun Lewis, Chief Executive
John Denman, Group Finance Director
James Cropper PLC                                Citigate Dewe Rogerson
Tel: [phone]                                Tel: [phone]


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