Interim Management Statement

LOW & BONAR PLC

Interim Management Statement

Low & Bonar PLC ("the Group"), the international performance materials group, today publishes its interim management statement for the period since 31 May 2011.

We are pleased to be able to report that the overall demand for our key products continues to be robust, and we expect that volumes will be ahead of the second half of last year, despite strong comparatives in that period. The Civil Engineering and Flooring markets have continued to perform well with the Transport segment continuing to benefit from a recovering trailer market. Demand in Building and Industrial markets remains subdued. Volumes of artificial grass yarn are running below prior year as this market, which represents 8% of Group sales, has been affected by funding shortages within the sports fields sector in both Europe and USA. Despite this, we still expect the Yarns business to at least break even this year.

Overall raw material polymer prices have stabilised, albeit at a high level. We therefore continue to expect stronger operating margins in the second half, however increasing margins in some of the more price sensitive segments of our Technical Coated Fabrics division has been more challenging than anticipated.

Our joint venture in Saudi Arabia with NATPET, Bonar Natpet, is progressing and construction of the production facility is due to commence shortly and it is expected to become operational before the end of next year. The joint venture, with its technological, marketing and raw material strength, is well positioned to take full advantage of the high growth geotextile markets in the Middle East and the Indian subcontinent.

Our effective tax rate for the year is likely to be circa 25%, compared to 31% last year, principally as a result of successfully securing tax benefits in the Netherlands arising from new product developments. The rate includes an adjustment in respect of prior years relating to this benefit of 2%; the estimated rate for next year is around 27%.

Overall we continue to expect that the Group will deliver another year of substantial progress and that profits will be in line with expectations.

Steve Good, Group Chief Executive, said:

"We are confident of delivering another year of substantial progress. While we remain alert to the uncertain macroeconomic indicators, the Group is in good financial shape and well positioned to adapt to opportunities and challenges ahead."

17 October 2011

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Forward looking statements

This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, the terms "believes", "estimates", "anticipates", "expects", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include matters that are not historical facts.

By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity may differ materially from the impression created by the forward looking statements contained in this announcement. In addition, even if the results of operations, financial condition, and liquidity are consistent with the forward looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: changes in the competitive framework in which the Group operates and its ability to retain market share; the Group's ability to generate growth or profitable growth; the Group's ability to generate sufficient cash to service its debt; the Group's ability to control its capital expenditure and other costs; significant changes in exchange rates, interest rates and tax rates; significant technological and market changes; future business combinations or dispositions; and general local and global economic, political, business and market conditions. In light of these risks, uncertainties and assumptions, the events described in the forward looking statements in this announcement may not occur.

Other than in accordance with its legal or regulatory obligations, the Group does not undertake any obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise.