Litigation Update - June 2007

As shareholders are aware, various Scapa Group companies are named as defendants in claims for damages arising from alleged exposure to asbestos.

In April 2007 a trial commenced before a jury in Middlesex County, New Jersey, regarding the claims of asbestos exposure of five former paper mill workers.

The jury has now returned a defence verdict in favour of Scapa Dryers Inc in respect of two of the plaintiffs and a verdict against in respect of the other plaintiffs amounting to US$832,000. The Board is examining the verdict and considering the grounds to appeal.

In almost 15 years of defending these cases in the USA, no Scapa Group company nor any of our insurance carriers has admitted liability, nor made any payment to any plaintiff under our policies. Accordingly, our insurance cover remains intact and the Board will continue to defend vigorously the outstanding claims.

Calvin O'Connor        Scapa Group plc                   Tel: 0161 301 7400
Mark Stirzaker           Scapa Group plc                   Tel: 0161 301 7400