Trading Statement

RNS Number:7012E
Bespak PLC
01 November 2004


Embargoed for release at 15:00                                  1 November 2004



                                   Bespak plc

                       Trading update and growth strategy

Bespak plc (LSE: BPK), Bespak, a leader in specialty medical devices, is today
pleased to announce that trading in the first half is in line with expectations.
  The Group also announces that it is to close its manufacturing facility in
Cary, North Carolina, USA, where it manufactures drug delivery devices for
pharmaceutical customers. Bespak will be working with customers to ensure the
transfer of certain production to its plants in the UK during the first half of
calendar year 2005.



The Group also expands on its growth strategy, which includes potential
acquisitions of specialty medical device companies.



On-Track First Half



First half trading is on track and the core Respiratory and UK Device &
Manufacturing Services businesses are meeting expectations.  There is no further
news about the European launch of Pfizer's Exubera inhaled insulin, for which
Bespak is a manufacturer of the inhalation device in partnership with Nektar
Therapeutics.  Nevertheless, the Group anticipates that operating profit for the
first half (before exceptional items associated with the Cary closure) will be
in line with expectations.



Cary Closure



After an extensive review the Board has concluded that the manufacturing
facility at Cary should be closed and certain production transferred to the
Group's facilities in King's Lynn and Milton Keynes. The Group expects to incur
an impairment provision associated with Cary assets of #4 million in its first
half results and #2 million of exceptional cash costs for the period that Cary
remains operational.  The closure of Cary is expected to improve Bespak's
on-going operating profit by #0.7 million annually.



Bespak's sales to the USA were #26 million last year, of which #10 million
represented products produced in Cary.  The other #16 million are sales of
respiratory products supplied from the UK and sold by the Group's US commercial
function, which will be unaffected by the closure.



Growth Strategy



Following a detailed review of operations, the Board sees significant
opportunities for Bespak to capitalise on its leading position as a manufacturer
of speciality medical devices.



The principal objective is to build a strong and consistent sales and earnings
track record through a combination of growth from the Group's existing
operations and selective acquisitions that either infill current operations or
take the Group into new, but related, product areas. The acquisition of
businesses which manufacture speciality devices and other products specified by
clinicians will reduce Bespak's current reliance on components sold to
pharmaceutical companies, which often entail lengthy development programmes.
Bespak anticipates that any acquisitions will initially be financed from the
Group's cash resources.



The Board believes that Bespak can secure a very strong position in pMDI valves
through the application of further resources to its research and development
programmes and aims to develop several new valve platforms by 2006 as well as to
grow the business internationally. The development of other speciality
respiratory delivery devices is also a priority.  The Board aims to capitalise
on past successes in Device & Manufacturing Services by adding new programmes
each year and by developing Bespak's capabilities in designing for Six Sigma.



Mark Throdahl, Chief Executive of Bespak, commented: "I am pleased that Bespak
is performing well. Our decision to close Cary comes as a result of consistent
under performance together with the increasingly competitive nature of the US
contract manufacturing market. The closure of Cary will create financial
benefits for Bespak beginning in the next financial year. We also plan to
diversify Bespak by acquiring specialty medical businesses that play to our
strengths and enable us to develop a more consistent growth profile."



Bespak will report its interim results on Wednesday 19 January 2005.





Analyst briefing / teleconference for analysts

A telephone conference for analysts, to discuss the above statement, will be
held at 15:30 (GMT) today.  Interested analysts should contact Buchanan
Communications for dial-in details.   Mark Throdahl, CEO, and Martin Hopcroft,
Group FD, will host the call and afterwards will be available for questions.



For further information, please contact:


BESPAK plc                                         Tel: [phone]

Mark Throdahl - Chief Executive
Martin Hopcroft - Group Finance Director

BUCHANAN COMMUNICATIONS                            Tel: [phone]

Tim Thompson / Mark Court / Mary-Jane Johnson



About Bespak plc



Bespak, a specialty medical devices company, is at the forefront of developing
new delivery systems for the pharmaceutical industry. The company has a product
range covering metered dose inhalers, dry powder devices, actuators and
compliance aids. The company also develops and manufactures drug delivery
devices for leading global pharmaceutical companies. The group, which has
facilities in King's Lynn and Milton Keynes in the UK and in Cary, North
Carolina, in the USA. is a public company quoted on the Official list of the
London Stock Exchange (LSE: BPK).  For more information, please visit
www.bespak.com.


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

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