Issued on behalf of Titan Europe Plc by Citigate Dewe Rogerson Ltd, Birmingham
Date: Friday 20 June 2008

IMMEDIATE RELEASE

Titan Europe Plc (“the Group” or “Titan Europe”)
Trading Update

At today’s Annual General Meeting, Chief Executive Mike Akers will make the following statement to shareholders:

“Trading conditions in the agricultural market are extremely strong and have led to high demand for large wheels, particularly from Eastern Europe. This is also the case for multi-piece wheels used in mining and mobile crane applications. However, we are noticing a weakening in some parts of the European construction market, which is affecting our undercarriage business. The weakness in the US construction market reported in our preliminary results announcement earlier this year continues to affect undercarriage sales in the US.”

“Fluctuations in exchange rates, particularly the effect of the strong Euro against the dollar and dollar related currencies, continue to have an effect on the business, reducing our competitiveness against Far Eastern suppliers especially in the aftermarket.”

“Most significantly of all, we continue to be exposed to volatility in the steel market. Unlike previous periods of major price swings, we are now in a position where suppliers are implementing immediate increases and breaking contracts, setting prices for very short time periods and also limiting supplies. The result is we are playing a highly disruptive game of “catch–up” on pricing to customers and each time we take action to restore margins, a new increase arrives. Overall, we have been losing approximately two points of margin compared to the performance of last year. We expect to see margins restored when equilibrium returns to the steel market.”

“In spite of the challenging trading conditions, real sales volumes (before movements in exchange rates) are expected to be better than last year, with the wheels division well ahead of expectations and the undercarriage division behind.”

“Action to reduce and relocate the undercarriage cost base has continued with agreements on a major reduction in the Potenza Plant (Southern Italy) and the closure of the Varese Plant (Northern Italy) signed with the trade union. Production has increased in Brazil.”

“We have continued to work on expanding Far East manufacturing with heads of terms signed for a new larger site in China for undercarriage and giant mining wheel manufacturing. This will strengthen our position in the Far East market and will also improve our competiveness in the aftermarket business.”

“The first half trading profit for 2008 is expected to show an increase compared to the second half of 2007. The outcome for the full year is heavily dependant on our ability to pass through steel price increases to our customers, which at this stage is highly uncertain.”

“Notwithstanding current uncertainty regarding steel prices and currency fluctuations, we remain optimistic about the long term prospects of the business;

• In the wheel division we are seeing continuous growth mainly in the agricultural sector sustained by healthy commodity prices and demand for renewable fuel;

• The development of the mining service centres in Australia and Latin America and the new service centre now established in Indonesia will expand our penetration in the mining sector not only for wheels but also for undercarriage;

• The new Chinese location will start manufacturing in 2009 reducing our manufacturing costs and giving us a stronger presence in the Far East market. This location will manufacture components for the OVM mining wheels. We have received vehicle build schedules from OEM customers which although they do not represent confirmed orders do fully support our enthusiasm for this product;

• Discussion with a potential partner in India is ongoing. This would give the undercarriage business an entry into a significant growth market.”

Enquiries:

Mike Akers, Chief Executive
Titan Europe Plc
Today: +44 (0) 1562 850561
www.titaneurope.com

Mark Percy
Seymour Pierce
Tel:+44 (0) 20 7107 8000

Fiona Tooley
Keith Gabriel
Citigate Dewe Rogerson Ltd
Tel:+44(0) 121 455 8370
Mobile: +44 (0) 7770 788 624 (KG)