Issued by Citigate Dewe Rogerson
Date: Friday 26 March 2010

Titan Europe provides the following update:

Trading
The Board expects to announce the Group’s preliminary results for the year ended 31 December 2009 during May 2010. The Board anticipates a full year pre-tax pre-exceptional loss to be in line with market expectations. Total revenues are expected to be around £260 million. This is consistent with the very weak third and fourth quarter demand predicted in the 6 November 2009 update.

After two months of trading in 2010, and with reasonable visibility to the half-year, we are able to give rather more encouraging comments on prospects for 2010.

We are now seeing order volumes, for the first six months of 2010, at a level of approximately 45% higher than in the second half of 2009.

Our end-markets divide approximately 50% construction, 20% mining and 30% agriculture.

Present visibility suggests that agriculture will be approximately on budget for the year having made a slow start; mining and construction, which suffered most in 2009, are now ahead of budget with a solid order follow through.

All geographical markets are showing an increase in demand with very strong growth in South America, Central Europe and the Far East. Throughout the Group there are new contracts coming on stream. Further potential new volumes are still to be confirmed.

Banking
We have recently shared our strategy and business plans with our leading bankers, and despite the recession in our customer industries being worse than anticipated at the time of our facility renegotiation early in 2009, the banks remain supportive of the Group and its strategy. We anticipate commencing capital repayments on our principal loans in accordance with those agreements in January 2011.

Outlook
Overall, the Board believes that we have created a strong platform for the development of the Group, with a stronger engineering and quality presence in the market supported by more efficient manufacturing. This is confirmed by our recent Caterpillar award at Gold level for our Titan Steel Wheels business in the UK and the John Deere Gold award for our ITM Landroni business in Brazil.

We continue to respond to the changing pattern of our customers’ needs, by further developing our global manufacturing footprint from its traditional European focus. Our new undercarriage factory in China is expected to be in full production during the third quarter and a second phase of further expansion to support demand from customers is now being planned. We already supply ‘Western’ manufacturers based in China with undercarriage assemblies. This demand is stronger than expected.

This greater diversity of location, stronger market presence and manufacturing efficiencies, combined with a substantial reduction in fixed costs, leaves us well placed to benefit from the recovery in our markets.

Enquiries:
Mike Akers, Chief Executive
Gary Chesterton, Group Finance Director
Titan Europe Plc
Today: +44 (0) 1562 850561
www.titaneurope.com
Ticker AIM: TSW

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

Fiona Tooley or Keith Gabriel
Citigate Dewe Rogerson Ltd
Tel: +44 (0) 121 362 4035
Mobile: +44 (0) 7785 703523 (FMT)
+44 (0) 7770 788624 (KG)