Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date, Tuesday, 8 June 2010

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

Further to the Trading update announcement issued on 26 March 2010, the Directors of Titan Europe Plc are pleased to provide an update on trading for the first four months of the financial year ending 31 December 2010.

TRADING UPDATE
After four months of trading (January to April 2010), external sales, unaudited, were £103m. This is approximately £10m ahead of management budgets for the same period. The improvement in the business started to be seen towards the end of last year and underlying prospects for the year have improved further from the uplift reported in our March trading update.

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

All parts of the Group and all geographic locations are now seeing significant market strengths, including the Agricultural business, which has recovered from a slow start to the year. Despite significant increases in steel prices, margins in the Wheels business remain broadly in-line with management forecasts. In the Undercarriage business, margins which had been impacted by low-volume-inefficiencies are now improving, again in the face of increases in input material prices.

The Group is now clearly seeing the benefits from its strategy of ‘globalising’ its manufacturing footprint:

The Brazilian Undercarriage business is at record volume levels and is now a major contributor to the Group’s Undercarriage business performance. We see more and more interest from OEM customers in this market where we are the only indigenous manufacturer;

The new Chinese Undercarriage factory is currently supplying product using mostly Italian made components. However, the new manufacturing lines for chain-links and rollers are being installed and the components will then be manufactured in China from Q3 2010. Our original planned capacity is fully sold and we are looking at a phase 2 further expansion to meet the increased demand;

As we focus our manufacturing strategy towards the heavy end of the undercarriage market, our Spanish foundry Prysa is now concentrating on large components for the mining industry and other heavy applications. Although primarily a manufacturing location serving the Undercarriage division, Prysa is also generating significant volumes of external revenues particularly for the railway industry;

As Brazil and China increase in importance, our manufacturing base for undercarriage in Italy has been reduced in scale whilst implementing efficiency improvements to reflect the lower level of volumes. This is impacting positively on margins and on competitiveness;

The Australian Wheel business is continuing to trade strongly. With the success in Australia of our ‘Mining Service Centres’, we are looking to extend this concept to South and North America. Caterpillar, having selected and approved the OVM-SVM patented quick change giant wheel system, has now placed their first orders with us;

Titan Italia is actively working on a project to benefit from the significant potential for agricultural wheels into the Russian-Belarus-Kazakhstan trading block;

Titan Steel Wheels, our UK manufacturing base for construction wheels which saw one of the most significant downturns in 2009, has seen an increase in production volume of 75% over the low point of 2009; and

Wheels India, our 35.91% owned Associate company, which is listed on the Mumbai Stock Exchange, has continued its strong performance. The market capitalisation of Wheels India as at 31 May 2010 amounted to approximately £42m.

Banking
Relationships with our principal banking group (Intesa San Paolo and Uni Credit) continue to be strong despite the results of 2009, the most difficult year in the history of the Group. Our overall strategy and five-year plan has been fully presented to them. This plan supports the Group’s current level of borrowing and debt repayment schedule.

Summary and Outlook
The Directors again express their confidence that the work done on the long-term strategy, combined with aggressive improvements in short-term efficiencies and cash control, have positioned the Group appropriately to benefit from the current and any further upturn in its markets, whilst also positioning the Group well to increase market share particularly through its geographic diversity.

Although we do not currently see signs of a second decline in our markets, we have to be aware of the financial climate and not completely rule this out. However, with our current higher order intake and strong schedules, the Board expects the Group to perform ahead of its original budget throughout the year. Therefore, the Directors see a potential outcome for 2010 trading to be ahead of current market expectations.

2009 Financial Report
The published accounts relating to the financial year ended 31 December 2009 together with the Notice of Meeting convening the Annual General Meeting on 30 June 2010 will be posted to shareholders today.

Both the published financial statements for the year ended December 2009 and the Trading update will be available on both the Regulatory News Service (RNS) of the London Stock Exchange and the Group’s investor website, www.titaneurope.com.

Click on, or paste the following link into your web browser, to view the Annual Report & Accounts 2009.

www.titaneurope.com/documents/Titan_Europe_Annual_Report_2009.pdf

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

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

Fiona Tooley
Citigate Dewe Rogerson
Tel:+44 (0) 121 362 4035
Mobile: +44 (0) 7785 703523

This outlook may contain forward-looking statements with respect to the financial condition, results, operations and businesses of Titan Europe Plc. Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the directors' current view and information known to them at the date of this statement. Nothing in this statement should be construed as a profit forecast.