Pre-close Trading Statement

Low & Bonar PLC (the “Group”), the specialist materials group, is today issuing a trading statement ahead of entering its close period prior to the announcement of its preliminary results for the year ending 30th November 2006.

Overall, for the year to 30th November 2006, the Group expects profit before tax, amortisation of goodwill and intangibles and non-recurring items to be in line with market expectations.

The Floors Division has continued to make good progress with continental Europe in particular, performing more strongly than last year. The contract with the Ministry of Defence has been extended for a further two years until June 2009.

Colbond, acquired on 31st July 2006, is performing well and is currently delivering slightly ahead of expectations at the time of acquisition. Additionally, our post acquisition plans for the business are progressing satisfactorily.

During the second half the Yarns & Fabrics Division has experienced continuing cost rises for supplies of polyethylene and polypropylene. Whilst we anticipate high raw material prices to continue throughout 2007, the impact of significant new production capacity at suppliers, expected to come on stream during 2008, should then begin to exert a downward pressure.

The grass yarns businesses have experienced significant market changes moving from fibrillated towards monofilament yarns which, combined with competitor activity, have impacted sales and margins. To create a more appropriate cost structure, we will be incurring a non-recurring charge of around £0.75m within the current financial year, which is expected to pay back within three years.

Our other businesses in the Yarns & Fabrics Division are trading well in this challenging environment. Geo-Tipptex, acquired in March 2006, is performing as expected.

With effect from 1st December 2006 Yarns & Fabrics will be merged with our recent acquisition, Colbond, to form the Technical Textiles Division. As has been planned for some time, Steve Good will be the Managing Director of this Division. Norbert Verfaillie, formerly Managing Director of Yarns & Fabrics, will be taking up the post of Director, New Business.

The Group will announce its preliminary results on 20th February 2006.

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