Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Monday 29 June 2009


Titan Europe PlcTrading Update

The Board of Titan Europe Plc ("Titan Europe" or "the Group" or "Company") provides the following trading update ahead of today's Annual General Meeting:


Trading updateTrading conditions remain difficult with the construction market continuing to be severely hit by the global recession. The Directors expect by the half-year, based on constant exchange rates, that construction market volumes will be down by about 50% whilst agricultural and mining markets will be down by between 25-30%.

Against this backdrop, the Board anticipate that Group revenue will be approximately 35% lower at its half-year period end compared to the same stage last year reflecting in particular, the further weakening in its markets during the second quarter 2009. The Directors anticipate that the Group's overall first half results will show a loss, however, the trading performance for the financial year ending 31 December 2009 currently remains in-line with market forecasts.

As the Board indicated in the 2008 Preliminary Results announced on 22 May 2009, the recently renegotiated primary banking facilities provides covenant and liquidity headroom to support the Group's long term business plans and reflects Titan Europe's primary lenders commitment to, and the financial stability of, the Titan Europe business.

In addition, whilst great care is being taken to preserve the Group's resources and investment in engineering and quality, as part of an on-going review of the business, the management has had to continue the programme of scaling back in respect of all costs so as to ensure that these are aligned to the Group's revenue base. This action unfortunately has included headcount which since the beginning of the year to the end of May has been reduced by the equivalent of around 35% across the business. As part of this programme the Company is making full use of Government supported temporary headcount reductions where available, primarily in Italy.

Although at this stage it is impossible to offer an opinion on the pace of market recovery, the Directors are able to report that discussions on future business with the Group's key customers are generally positive; there are also signs of small improvements in order books in the later months of the current year, all of which the Company expect to see feed through into its revenue stream in the fourth quarter of the current financial year.

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