P R E L I M I N A R Y R E S U L T S March 2005

£ million % inc. Group sales % Operating profit % Operating margin14.3%14.4% Net interest(2.7)(3.0) Profit before tax % Earnings per share8.3p7.9p5.1% Dividend per share4.0p3.5p14.3% Financial highlights 2004

Key features  Strong volume growth  Strong Cutisin performance  Adverse external factors  Further reduction in net debt  Investment in capacity

Sales analysis 2004 Sales change vs Volume7.2% Price / Mix(2.0)% Operations5.2% Foreign Exchange(3.2)% Total2.0%

Regional sales by destination 2004 Sales change vs 2003  Very good growth in UK / Ireland  Continued pricing pressure in the UK  Strong Devro growth in Western European markets  Strong Cutisin growth in Eastern European markets Operations 2004 £mVolumePrice / MixTotalExchangeTotal Europe %(2.3)%2.7%(0.9)%1.8%

Regional sales by destination 2004 Sales change vs 2003  Market share gain in domestic US market  Increasing volumes at larger customers  Steady performance in Latin America  Impact of weak US$ Operations 2004 £mVolumePrice / MixTotalExchangeTotal Americas %(5.3)%10.6%(11.5)%(0.9)%

Regional sales by destination 2004 Sales change vs 2003  Solid performance in Australia / New Zealand  Volume gains in South East Asia  Continued growth in Japan Operations 2004 £mVolumePrice / MixTotalExchangeTotal Asia / Pacific %2.3%6.8%(1.4)%5.4%

Regional sales by destination 2004 Sales change vs 2003 Full Year 2004 £mVolumePrice / MixExchangeTotal Europe %(2.3)%(0.9)%1.8% Americas %(5.3)%(11.5)%(0.9)% Asia / Pacific %2.3%(1.4)%5.4% Total %(2.0)%(3.2)%2.0%

Profit and loss 2004 £ million Group sales Operating profit Operating margin14.3%14.4% Net interest(2.7)(3.0) Profit before tax Tax(5.3)(5.2) Minority interest(0.0)(0.2) Profit for the year

Earnings and dividend 2004 £ million Earnings per ordinary share  Basic8.3p7.9p  Diluted8.3p7.9p Dividend per ordinary share4.0p3.5p

Balance sheet £ million Fixed assets Net current assets Long term creditors and provisions(49.3)(50.2) Share capital, share premium and reserves Retained earnings Minority interest Net debt(25.4)(26.7) Net gearing34.9%41.2%

Cash flow £ million Net cash inflow from operating activities Net interest paid(3.2)(3.1) Taxation(5.0)(3.2) Capital expenditure(11.4)(7.3) Acquisitions and disposals(1.6)(0.2) Equity dividend paid(5.8)(5.0) Net cash flow before financing Issue of share capital Exchange(0.4)(1.3) Decrease in net debt Interest cover7.87.0

Outlook  New products  2005 trends  Positive outlook