PRESS RELEASE BY MBD...

UK RUBBER PRODUCTS MARKET RESEARCH REPORT

RELEASED: JANUARY 2005

After researching the UK rubber products market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

MARKET REVIEW 2000-2004:

Demand for rubber products is believed to have been relatively stable in recent years, albeit moderate year-on-year changes are evident. In 2004 growth of 3% is believed to have taken demand for rubber products to £2879.4 million at MSP, the highest level recorded since the turn of the decade. The weakest market value for rubber during the five year review period was in 2000 at £2771.7 million, 4% less than the market value in 2004.

MARKET FORECAST 2007-20011:

The UK market for rubber products is anticipated to show little change overall in real terms during the forecast period, with sales remaining close to the £3 billion mark at MSP, largely reflecting the maturity of the market and the diversity of demand sectors providing a degree of risk reduction, including the significance of the replacement tyre market which is less affected by economic factors, albeit with potential for customers to trade down to lower cost units.

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