Trading Update

4 July 2011

BRITISH POLYTHENE INDUSTRIES PLC

TRADING UPDATE

Ahead of the Interim Results for the six months to 30 June 2011, to be announced on 30 August 2011, British Polythene Industries PLC is providing an update on current trading.

"We indicated at the time of our AGM on 12th May that we anticipated that the first half would produce a better result, at the operating level, than the similar period in 2010. We can now confirm that this outcome will be comfortably ahead of the first half of 2010. We also indicated that our order book was looking leaner than the levels we experienced earlier in the year and this trend has continued.

We currently anticipate that our first half volume growth will be under 2%, and that all of this will have come from the agricultural sector. Recent damper weather, both in the UK and mainland Europe, should ensure that the silage season continues well into July.

Overall demand for our products from the retail, service, construction and industrial sectors has been flat, with few signs of any upward trends in the near future.

In recent weeks we have seen an easing in polymer prices, and the current downward trend in feedstock costs for polymer producers may herald some relief from the very high polymer costs which have impacted severely on margins, particularly in the retail sector."

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