Trading Update and Potential Funding Requirement

For immediate release 6 March 2013

Superglass Holdings PLC

("Superglass" or the "Company")

Trading Update and Potential Funding Requirement

Superglass Holdings PLC, the UK's leading independent manufacturer of glass wool and mineral fibre insulation solutions, today releases a trading update for the interim period ended 28 February 2013 and announces the Board's intention to explore options to strengthen the Company's balance sheet.

As explained in the announcement of 5 February 2013, current trading conditions continue to be extremely challenging. Superglass' experience is that the delay in the recent transition from CERT to Green Deal is causing a major gap in activity within the retrofit market for both loft and cavity insulation. Combined with abnormally low levels of housebuilding activity in the UK by historical standards, the net effect is a surplus of UK-based insulation manufacturing capacity and highly competitive market conditions, which in turn are detrimentally impacting the Company's operating profits and cashflow.

The first phase of Project Phoenix remains on track to be completed in April 2013. The Board has reassessed the aggregate deliverable cost savings arising from Phoenix and other related initiatives and has confirmed previous estimates of a reduction in the Company's annual operating cost base of £5.0 million. The first full year of savings is expected in 2013/14. Once these cost savings are factored in, the Board's assessment is that Superglass can be strongly cash generative at the operating level in the future, even at current depressed market volumes and prices.

Looking beyond the current financial period, there are grounds for greater optimism in Superglass' core markets. The Board expects that government stimuli will generate a gradual increase in UK housebuilding activity from 2014 onwards; and the current gap in retrofit activity should correct itself within a timescale of 6-12 months as the flagship Green Deal and ECO initiatives become fully operational.

The Company continues to operate within the terms of its bank facilities and, as demonstrated by the amendments to the bank facilities announced in November 2012, including the adjustment to the RCF repayment profile to generate up to £2.9 million of additional headroom, the Company's bankers continue to be supportive.

However, debt amortisation payments are due to resume in November 2013 and Superglass is scheduled to repay £8.2 million of debt in aggregate over the three years to November 2016. The Board's view is that for so long as market conditions remain as they are now, these debt service obligations will be unsustainable. As a result, the Board is considering all options to strengthen the Company's balance sheet, including the potential for a further equity issue. It is likely that any refinancing measure would result in significant dilution to existing shareholders' equity.

The Board will update the market on progress with the refinancing initiative as and when appropriate.

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