COOKSON INTERIM REPORT TO SHAREHOLDERS

First Half Highlights

1. Group profit* before tax improves significantly
   - £42.0 million vs. £5.5 million last year

2. Electronics division continues robust recovery
   - turnover up 21% and operating profit* more than triples to £25.8 million
   - Laminates sector moves into profit*

3. Ceramics and Precious Metals divisions achieve higher turnover and profits*

4. Borrowings rise by £27 million to fund higher activity levels
   - further improvement in working capital ratios
   - comfortably within banking facilities

5. Strategic review of Precious Metals determines division should be retained

6. Nick Salmon appointed Chief Executive with effect from 19 July 2004

   *(before amortisation of intangible assets and exceptional items)

Commenting on the results, Nick Salmon, Chief Executive, said:

"The benefits of much improved trading conditions are evident in these results, as is the work that has been done to put Cookson in a position to take advantage of the recovery in its markets.

"The priorities for management in the second half of 2004 are to focus on improving the performance of all businesses, to take advantage of the positive trading environment and to continue to address any part of the Group that is underperforming. Over the next few months, I will be spending a great deal of time getting to know the businesses and the management teams across the Company, so that I can formulate a measured and informed view of the way ahead.

"As to the second half of 2004, current market indicators anticipate that underlying trading conditions will remain similar to those of the first half. Based on this assumption, and that the second half is traditionally the stronger trading period for the Precious Metals division, the improved performance of the Group should continue."