Trading Statement

RNS Number:5968B
Chloride Group PLC
25 September 2002

                                                               25 September 2002


                               CHLORIDE GROUP PLC
                                TRADING STATEMENT


Before entering its close period prior to the announcement of interim results on
24th October 2002, the Company is issuing the following statement on current
trading in line with its standard practice.

As indicated in the Chairman's Statement to the Annual General Meeting on 24th
July, trading conditions remained difficult in the first half with no signs of
sustained recovery in many of our key markets.  Consequently, sales for the
first half year will be lower than the first half of the previous year.

Against this background, the Company expects to achieve an increase in operating
profit and earnings per share compared to the first half last year.  This
improved profit performance, after allowing for increased expenditure on R & D,
results from the growth in high margin service revenues and the actions taken to
reduce overheads and improve margins.

Product sales were particularly affected by the absence of large projects but,
as anticipated, service revenues continued to demonstrate strong growth.  Orders
for the period are expected to be ahead of sales, resulting in a stronger order
book as we enter the second half.

At this stage we still view the second half with caution in the light of
difficult and uncertain market conditions.  However, provided that the recent
improved product order intake trend can be maintained and with the benefit of
continued service revenue growth and focus on costs and margins, we anticipate
stronger performance in the second half.

Looking further ahead, Chloride is well placed to benefit from improvements in
market conditions, with a strong balance sheet, reduced cost base, focused
management structure, and an excellent range of new products and innovative
solutions.  We remain convinced of the future prospects for the business in a
global, long-term growth market for power protection solutions driven by the
need for business continuity.

Commenting on the statement Keith Hodgkinson, Chief Executive, said:  "We are
making progress despite very difficult market conditions.  Whilst the immediate
outlook remains uncertain, we are confident that we are very well placed to
exploit any upturn in trading given our operational gearing and market leading
solutions."


Enquiries:                                                      Telephone:
Chloride Group PLC                                              020 7834 5500
          Keith Hodgkinson (Chief Executive)
          Neil Warner (Finance Director)

Hudson Sandler                                                  020 7796 4133
          Andrew Hayes/Noemie de Andia



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