Interim Management Statement

Hampson Industries PLC

Interim Management Statement

Hampson Industries PLC ("Hampson" or "the Group"), the international aerospace group, today issues the following Interim Management Statement covering the period from 1 October 2010 to the current date.

Markets and Performance

Aerospace Composites & Transparencies

Market conditions in aerospace tooling have remained largely unchanged since the time of the half year report. Despite certain current programme delays, the Board believes that numerous large tooling opportunities continue to exist, most notably on the B787-8, B787-9, Airbus A350, CH-53 and Lockheed Martin Lightning II ("JSF") programmes.

In aerospace tooling, design and manufacturing activity on the Group's largest ever (USD 53 million) tooling contract - which was secured in early September 2010 - has progressed in line with forecast. This includes lay-up of high temperature composite material to form large, light-weight tooling mandrels at two Hampson facilities, as well as more traditional tooling fabrication and machining work.

The period also saw the award of a major contract by Piper Aircraft, Inc. to provide complete turnkey design, fabrication, installation, testing and certification of the full suite of assembly and bond tooling for the fuselage, empennage, and wing for the aviation company's new single-engine PiperJet Altaire.

Building on its strong first half performance, the Group's California-based tooling business, Coast Composites, performed very well in the period, with this trend expected to continue throughout the rest of the final fiscal quarter. By contrast, performance at the Group's Michigan-based Odyssey tooling operation was impacted by a number of significant operational challenges and these have continued to severely affect performance of the division in the period. Further restructuring and operational improvement initiatives are in progress but the results of these are not expected to be realised until the following financial year. Performance at GTS is well ahead of the comparable period in the previous year but remains below our expectation. Preparations are now well advanced for the deployment of SAP at this site, following the earlier successful implementation at Odyssey, where the new systems infrastructure is helping enable a series of comprehensive business improvements.

California-based Composites Horizons, Inc. ("CHI") has continued to see strong demand for its specialist high temperature composite structures which are used on commercial and military jet engines and auxiliary power units. Performance in the period was slightly ahead of management expectations with further new work also secured on the important JSF and A350 programmes.

Texstars also won new work in the period, having secured orders on two new programmes for composite structures, with an expected annualised value of USD 5-6 million commencing in the year 2011/12. Conditions in Texstars' core market for military transparencies are, however, expected to become more challenging from the final quarter of 2010/11 onwards following recent indications of potential cut-backs in certain US defence procurement budgets.

Aerospace Components & Structures

In Aerospace Components and Structures, a targeted initiative to increase output and efficiency measures resulted in the deferral of further cost-base restructuring at the Group's BHW site until the final quarter. This, combined with later than expected receipt of orders for a military aerospace upgrade programme, meant that results for the site fell below management expectations for the period and the site remains loss making.

The HondaJet programme underwent its first successful FAA-conforming flight test on 21 December 2010 and Hampson's position as exclusive supplier of the complete empennage structure has now been confirmed for the life of this significant programme. Initial production deliveries are expected to be made from the second quarter of 2011/12, benefiting divisional results in that year.

The Shims businesses continued to perform strongly in the period, offsetting the shortfall at BHW. With increased production rates recently announced by both Airbus and Boeing across their single and twin aisle aircraft programmes, this strong performance is expected to continue for the foreseeable future.

Financing

Net debt at 31 January 2011 was £99 million, an increase of approximately £10 million since the half year. The increase was in line with management's forecast, being the result primarily of normal phasing differences between the receipt of contracted progress payments from customers and working capital investment in large tooling contracts.

The reduction of net borrowings remains a key strategic priority for the Group and, in this regard, the Board has previously indicated that selective asset disposals may be pursued. Whilst it is premature to assess whether acceptable value can be realised from such an exercise, the Board has made progress in this regard and anticipates being in a position to make a final decision in the relatively near term.

Outlook

Further to the major operational changes recently announced and with a number of important restructuring initiatives still ongoing, the Board considers it appropriate to remain cautious about the Group's expectations for the 2010/11 financial year. Recognising these issues, the Board expects that the identified initiatives that are currently being implemented will lead to steadily improving performance in 2011/12.

With its global leadership position in precision aerospace tooling and its proven capabilities in advanced composites, the Group remains strategically well positioned for the medium and long term.

For further information:

Norman Jordan, Chief Executive +1 918 633 0904 (GMT -5)

Howard Kimberley, Finance Director +44 1384 472946

Marylene Guernier/Ed Orlebar, M:Communications +44 20 7920 2369/2323

Cautionary Statement:

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Hampson's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one of more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

Hampson undertakes no obligation to revise or update any forward looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save a required by law and regulations.

Notes to editors:

About Hampson:

The Group's operations are structured into two business segments, serving the global commercial and military aerospace markets from manufacturing facilities in the UK, North America and India.

Hampson is a world leader in the design and manufacture of close tolerance tooling and assembly systems for large composite and metallic aero structures. The Group employs approximately 1,400 people worldwide.

Hampson Industries PLC is listed on the main market of the London Stock Exchange (Symbol: HAMP). For more information on Hampson: www.hampsongroup.com