Titan Europe Plc
("Titan Europe" or the "Group")

In light of the rapidly changing condition of the global economy, general lack of visibility and the subsequent impact on customer confidence and trading conditions, Titan Europe provides the following update in relation to its financial year ending 31 December 2008.

Current Trading
In the 10 months ending 31 October 2008, the Group experienced mixed visibility and performance in its two key divisions, Wheels and Undercarriages which supply the global mining, construction and agricultural machinery markets, nevertheless with the October management results, the Board remained confident that the results for the year ending 31 December 2008 would be broadly in-line with the market expectation.

Of the Group's two businesses, performance continues to be strongest in the Wheel Division where volumes had proved resilient, particularly in Agriculture. However, more recently this division has also begun to feel the tightening in some markets resulting from the rapid decline in the construction sector both in Europe and North America.

Whilst our customers in the agricultural sector continue to forecast growth into 2009 we believe this expectation should be tempered with some caution given the increasing uncertainty of the general economic outlook. This being said, the Directors believe that the Group is particularly well positioned to benefit from any growth in this sector. Other areas of the Wheel Division remain encouraging and despite some cut backs from recent peaks, volumes continue at historically high levels.

The Undercarriage Division has been adversely affected by the well documented slow-down in North American construction, which has now spread to Europe. Nonetheless, we have continued to develop this business with new products and new customer wins which, when combined with the reduction in manufacturing costs already undertaken by Titan Europe, leaves us cautiously optimistic that we can benefit once normal trading patterns return.

Product & Technological Developments
Despite the uncertain economic outlook for 2009, the Board believes that Titan Europe's very strong market position in many of its product areas, coupled with its equally strong customer relationships will result in the Group being well positioned to deal with circumstances as they arise, particularly in relation to the large infrastructure investment plans currently proposed to stimulate economies around the world.

Our new robotic rim manufacturing line - which is a significant leap forward in manufacturing technology for agricultural rims - has been commissioned in our facility at Finale Emilia, Northern Italy. This greatly increases our flexibility and expands our capacity to produce large wheels for agricultural machines and leaves us well positioned to maximise opportunities in this agricultural market.

We have made a series of improvements to our Undercarriage manufacturing process including a new forging system which increases material yields and reduces forging tonnage; improved design for large chain products increasing quality and lifespan; and a series of new designs for cast components as part of our move towards the heavy product end of the undercarriage sector, serving both heavy construction and mining applications.

Prospects
October trading remained encouraging with results ahead of budget despite reductions in schedules. During November we began to witness a significant increase in rescheduling or postponement of orders reflecting the further deterioration in the global economy, especially in construction related activities. We now expect that November trading will be below budget.

The Board anticipates that December will see a further very significant decline in sales and manufacturing with volumes substantially lower than very recent expectations.

In response the Group will continue to scale back materials inputs and manufacturing and investment plans to match the more difficult market conditions.

Overall in view of the above, the Board expects that profit before tax and pre-exceptionals for the year to 31 December 2008 will be around 10 to 20 per cent below current market forecasts, foreign exchange rate volatility contributing to the inability to accurately forecast the full year results.

Funding
Given the current environment, the Group has been keeping its principal lenders, Intesa San Paolo and Uni Credit, up to date with developments and as a result the Directors believe that they remain wholly supportive of the Group and its ongoing strategy. Titan Europe believes that the current facility will be sufficient for its short to medium term requirements.


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

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

Fiona Tooley or Keith Gabriel
Citigate Dewe Rogerson Ltd
Tel:+44(0) 121 455 8370
Mobile: +44 (0) 7785 703523