RNS Number:3331K
Bullough PLC
24 April 2003

Bullough Plc ("Bullough" or the "Company")

The following is the text of a statement made by the Chairman at the Annual
General Meeting of Bullough held earlier today:

"Offer for the Company



The Board of Bullough have noted the recent announcement by Montpellier Group
plc of a conditional cash offer for Bullough at 12 pence per share by Tobull
Limited, a wholly owned subsidiary of Montpellier Group plc, valuing Bullough at
#6.38 million.



The Independent Directors of Bullough (who comprise the Board other than Peter
Gyllenhammar, a director of Montpellier) and our advisers consider this offer to
be inappropriate at this present time.



The Independent Directors are of the opinion that the value of the various parts
of the Bullough Group are worth considerably in excess of the current market
value of the Group.  The Board can confirm that it has received firm indications
of interest for one division and discussions are progressing. Should these firm
indications of interest lead to a disposal of the division it is expected that
the net proceeds received by Bullough will be in excess of that being offered by
Tobull Limited for the entire Bullough Group.  This disposal route, which would
involve the return of cash to shareholders, therefore offers the prospect of far
better returns to the Shareholders than acceptance of the offer by Tobull
Limited.



Montpellier has an existing 29.9% shareholding in Bullough and is represented on
the Board by Peter Gyllenhammar.  Peter Gyllenhammar has been kept fully
informed of the financial position and prospects of Bullough including current
trading and the indications of interest.



The Independent Directors strongly recommend that Shareholders take no action in
respect of their Bullough shares and that Shareholders do not sign any documents
until they receive formal advice from the Independent Directors.



Current Trading



Trading in the first three months of the year has been in line with
expectations.



The loss sustained in the first quarter in Workplace Solutions in comparison to
the previous year, has been significantly reduced despite lower turnover.
Temperature Control showed a modest improvement over the previous year.



The restructuring action taken throughout 2002 in Workplace Solutions has
lowered the cost base such that despite lower sales in the first quarter, in
comparison to the prior year, the loss was reduced close to break even level.
The full benefit of this cost restructuring action will be seen over the coming
months of the current financial year.   In our Temperature Control division
Trianco is showing some sign of improvement despite sales with its major
customers being at a disappointing level.  Johnson & Starley has started the
year well and has improved performance over the prior year.



The combined impact of restructuring together with the capital investment
programme implemented in 2002 is now delivering real benefit.   Effective
control of working capital has been maintained and group borrowings remain at a
negligible level. "



Enquiries


Howard Marshall                    Bullough                           01372 379088
Richard Welton                     Arbuthnot                          0121 710 4501



Responsibility Statement



The Independent Directors of Bullough accept responsibility for the information
contained in this announcement. To the best of the knowledge and belief of the
Independent Directors of Bullough (who have taken all reasonable care to ensure
that such is the case), the information contained in this announcement is in
accordance with the facts and does not omit anything likely to affect the import
of such information.






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