RNS Number:7513J
Bespak PLC
08 April 2003


For Immediate Release                                              8 April 2003



                                   Bespak plc

                           Trading & Strategy Update


Overview


Bespak is experiencing continued weakness in valve sales. The market's
transition to HFA valves has temporarily produced lower CFC sales at a time when
approved HFA formulation products have launched more slowly than expected.
Additionally, delays in scaling-up new assembly equipment and reducing costs on
a major drug delivery device have temporarily depressed profitability. However,
we expect these issues to be addressed over the summer.



The Board's current expectation is that the Group's results will be at, or
modestly below, breakeven in the second half, before tax and exceptional items.



Cost savings



Performance in this financial year is unacceptable and, as a consequence of a
recent strategic review we will be taking significant actions intended to reduce
our cost base and to return the Group to an acceptable level of profit.  In
November 2002, we announced that we would incur a charge of #1m to produce at
least #2m of overhead savings in the next financial year which is on track.
Additionally, we are now aiming to achieve approximately #7m of further
annualised cost savings over the next financial year through the following steps
and once exceptional charges have been incurred.



*        Curtailment of Nasal formulation programmes that do not provide
short-term returns. This is despite such activities having, to date, met all
technical milestones. However, we shall continue to exploit device-related
opportunities in Nasal drug delivery which build on the technologies that we
have developed over the past few years.



*        Further restructuring of our manufacturing operations in North America
over the next 12 months with the objective of eliminating long-running losses.



*        Identification of additional overhead savings from UK operations.



Overall, our actions will result in a further exceptional charge of
approximately #5m, which will be booked either this financial year or next.



Dividend



We are maintaining our dividend in view of the stronger financial performance
that we expect to result from our actions, together with our confidence in the
medium and long-term prospects of the Group.

Approaches



We have received a number of approaches from third parties which may or may not
lead to an offer for the entire share capital of Bespak. Consideration of these
approaches is at an early stage and there can be no certainty that a transaction
will result. A further announcement will be made in due course.



Prospects



Despite these short-term trading issues, Bespak's Management remains confident
in the strength of the core businesses of Pulmonary and Device & Manufacturing
Services, and of their competitive positions.



Recently, there has been an improvement in HFA valve sales with growth in demand
for marketed products as well as from customers readying launch plans.
Appropriately, Bespak recently opened a new state-of-the-art valve manufacturing
facility in Kings Lynn.



We have also experienced strong demand for major drug delivery devices.



We are able to announce that we have successfully completed a prototype
Pulmonary drug delivery system that has been developed jointly with DEKA
Research Corporation in the United States. This system, which has the potential
for highly accurate and controllable pulmonary delivery of systemic drugs, is
currently being tested before being demonstrated to potential partners in the
pharmaceutical industry.



Full Year Results



Bespak intends to announce its preliminary results for the year ending 3 May
2003 on 23 July 2003.



For further information please call:


Buchanan Communications                   Tel: +44 (0)20 7466 5000

Tim Thompson
Nicola How                                Mobile: 07956 597 099





Notes to Editors:

Bespak plc is in the forefront of developing new delivery systems for the
pharmaceutical industry. The Group has a product range covering metered dose
inhalers, dry powder inhalers, actuator and spacer systems, as well as
specialist components and assemblies for the medical device industry. The Group
has manufacturing facilities at King's Lynn and Milton Keynes in the UK and at
Cary, North Carolina in the USA. Bespak plc is quoted on the Full List of the
London Stock Exchange.




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