RNS Number:9684N
Barlo Group PLC
25 July 2003

                                BARLO GROUP PLC

                     STATEMENT BY CHAIRMAN TO SHAREHOLDERS

                             ANNUAL GENERAL MEETING

In the year ended 31 March 2003, the Group achieved a satisfactory performance,
in a difficult trading environment, driven by some volume growth and the
benefits of the restructuring programme undertaken in the previous year.

In announcing its full year results in May, the Group indicated that trading
conditions were likely to remain difficult throughout Europe. This has been
evident in the first quarter of the year and whereas the Group is currently
trading in line with plan, there is a continuing lack of visibility in the
Group's main markets and, as a result, the outlook remains unpredictable.


Plastics Business

The Group's plastics businesses include Barlo Plastics, its clear sheet
operation based in Continental Europe and Athlone Extrusions, its coloured sheet
activities based in Ireland.

Both businesses have had a satisfactory start to the year.

Sales volumes for Barlo Plastics are ahead of last year with some pressure on
margins. In recent months the business has experienced a decline in the order
backlog with a corresponding reduction in sales visibility. In the first
quarter, the business has traded close to planned levels.

Athlone Extrusions performance is in line with plan.

Raw material prices have stabilised during the first quarter with the price of
some polymers falling.


Radiator Businesses

The Group's radiator activities include panel, specification and design
operations (trading under the Barlo, Veha and Merriott brands).

While depressed market conditions, particularly on the Continent, have
continued, the Group's radiator activities have had a satisfactory start to the
year helped by increased volumes. As a result, overall radiator performance is
slightly ahead of plan.


Trading Environment

As previously stated, the Group does not anticipate any improvement in the
trading environment in the current year. While overall trading in the first
quarter has been in line with plan, challenging market conditions continue to
prevail.


Recent Developments

As announced on the 11th July, the Group has received an initial approach from
its Chief Executive, Dr. Anthony Mullins, which may or may not lead to an offer
being made for the Group. Dr. Mullins subsequently confirmed that this approach
was made on the basis of an offer price of 30 cent for each share.

Discussions are at a preliminary stage, and the Board has appointed a Committee
comprising Mr. John Farrell, the senior independent director, and myself to
consider the approach. The Board has appointed AIB Corporate Finance Limited to
provide it with independent financial advice.

I am advised that the Rules made by the Irish Takeover Panel preclude me from
providing further information at this stage. If the matter progresses to a
formal offer, we will be writing to you with full details at that time.



Niall Carroll
Chairman



Ends.

25th July, 2003



For Reference:

Tony Mullins,
Group Chief Executive
Barlo Group plc.
Tel: (01) 231.0700

Jim Milton/Tom Byrne
Murray Consultants
Tel: (01) 498.0300



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