Trading in Johnson Matthey's second quarter is in line with expectations. The progress of each of the group's divisions is similar to the first quarter.

Catalysts & Chemicals Division is achieving good growth with the autocatalyst business continuing to benefit from the worldwide introduction of our precision coating technology. Precious Metals Division's profits are down on last year reflecting lower average prices for platinum group metals (pgm's) compared with last year and subdued trading conditions in the pgm markets. Colours & Coatings Division's profitability has improved since the second half of last year as the benefits of the rationalisation programme announced in January come through. Pharmaceutical Materials Division is achieving strong growth benefiting from good sales of the new products launched at the end of last year and good contributions from Macfarlan Smith and Pharm-Eco.

The US dollar has weakened significantly against sterling in the last few months. This will have an impact on the translation of the group's US profits into sterling. Despite this adverse exchange translation and the lower average pgm prices experienced in the first half, the group still expects to deliver growth in profit before tax, exceptional items and goodwill amortisation for the six months to 30th September 2002 compared with the same period of last year.

Enquiries:

Gavin Anderson & Co