Trading Update

5 August 2010 API Group plc Trading Update API Group plc ("API" or "the Group") today provides the following trading update. Trading so far this financial year has been in line with expectations, with revenues more than 15% up on prior year comparatives and slightly ahead of last year's second half. Laminates has started to benefit from a strong pipeline of new projects, including some important new contract wins, and its results are now expected to be substantially ahead of last year.  On the other hand, the foils businesses are experiencing significant upwards movement in commodity-based raw material costs as a result of global supply constraints.  Whilst action is underway to pass these costs on through higher selling prices, any delay or shortfall in this process will have a negative impact on profitability.  Overall, the Board expects any temporary deterioration in foils margins to be offset by the increased contribution from Laminates, leading to unchanged expectations for the year as a whole. The strategic review of API's 51% owned Chinese subsidiary is continuing, with various options under consideration for eliminating the Group's exposure to trading losses at the joint venture's foil manufacturing operation in Shanghai. For further information, please call: API Group plc Tel: +44 (0) 1625 650334 Andrew Turner, Group Chief Executive Chris Smith, Group Finance Director Grant Thornton Corporate Finance Tel: +44 (0)20 7383 5100 Philip Secrett / Colin Aaronson Numis Corporate Broking Tel: +44 (0)20 7260 1000 James Serjeant [HUG#1435829] This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction for further distribution is prohibited. Source: API Group PLC via Thomson Reuters ONE