P R E L I M I N A R Y R E S U L T S13 March 2002

SalesContinuing operations 127.6 122.4Discontinued operations 80.7 107.1

208.3 229.5

Operating profit before exceptional itemsContinuing operations 19.4 21.6Discontinued operations (0.8) 2.4

18.6 24.0

Operating margin – continuing operations 15.2% 17.7%

Exceptional items (52.1) (1.5)

Net interest (3.4) (2.7)

(Loss) / profit before tax (36.9) 19.8

(Loss) / earnings per share (28.8)p 8.3p

Earnings per share before exceptional items 5.1p 9.0p

Dividend per share 2.0p 5.0p

Financial Highlights 2001

£ million 2001 2000

Key Features

BSE in Continental Europe

Foot and Mouth Disease

Sale of Cellulose business

Collagen raw material costs

Sales Analysis 2001

Continuing Operations - sales change vs 2000 *

2001Volume (0.9)%

Price / Mix 0.7%

Operations (0.2)%

Foreign Exchange 1.6%

Total 1.4%

* Excluding quarter 4 sales of distributed cellulose products of £3.5m

Europe 69.0 (3.4)% 2.0%(1.4)%

Regional sales by destination 2001

Continuing Operations – sales change vs 2000 *

£ million 2001 Operations Exchange Total

UK market depressed by the impact of Foot and Mouth Disease

Small loss of market share in UK in early part of year

Volumes in Europe adversely affected by BSE concerns

Good Cutisin performance in both edible and non-edible collagen

Favourable exchange impact* Excluding quarter 4 sales of distributed cellulose products of £3.0m

Regional sales by destination 2001

Continuing Operations – sales change vs 2000 *

Strong Coria performance in both US and Latin America markets

Devro and Cutisin volumes restricted due to BSE and Foot and Mouth concerns

Beneficial exchange impact

* There are no sales of distributed cellulose products in the Americas

£ million 2001 Operations Exchange Total

Americas 33.3 6.8% 5.7% 12.5%

Regional sales by destination 2001

Continuing Operations – sales change vs 2000 *

Regulatory restrictions had significant impact in SE Asia in first half, but strong recovery in second half

Volumes in Japan severely affected by regulatory restrictions and emergence of BSE

Modest uplift in Australia

Adverse exchange impact

* Excluding quarter 4 sales of distributed cellulose products of £0.5m

£ million 2001 Operations Exchange Total

Asia Pacific 21.8 0.9% (5.3)% (4.4)%

Europe 69.0 (3.4)% 2.0% (1.4)%

Americas 33.3 6.8% 5.7% 12.5%

Asia / Pacific 21.8 0.9% (5.3)% (4.4)%

Total 124.1 (0.2)% 1.6% 1.4%

Regional sales by destination 2001

Continuing Operations – sales change vs 2000 *

2001Full Year £m Operations Exchange Total

* Excluding quarter 4 sales of distributed cellulose products of £3.5m

Profit and Loss – 2001

SalesContinuing operations 127.6 122.4Discontinued operations 80.7 107.1

208.3 229.5

Operating profit before exceptional itemsContinuing operations 19.4 21.6Discontinued operations (0.8) 2.4

18.6 24.0

Operating margin – continuing operations 15.2% 17.7%

Exceptional items (52.1) (1.5)

Net interest (3.4) (2.7)

(Loss) / profit before tax (36.9) 19.8

Tax 6.8 3.9

Minority interest 0.1 0.3

(Loss) / profit for the year (43.8) 15.6

£ million 2001 2000

Earnings and Dividend – 2001

Earnings per ordinary share

Basic (28.8)p8.3p

Diluted (28.8)p8.3p

Before exceptional items 5.1p9.0p

Dividend per ordinary share 2.0p5.0p

£ million 2001 2000

Balance Sheet - 2001

Fixed assets 91.8 120.1Net current assets 36.9 66.7Long term creditors and provisions (44.3) (90.6)

84.4 96.2

Share capital, share premium and reserves 60.1 56.4Retained earnings 21.8 37.5

81.9 93.9

Minority interest 2.5 2.3

84.4 96.2

Net debt (24.7) (29.0)

Net gearing 30.2% 30.9%

£ million 2001 2000

Cash Flow – 2001

Net cash inflow from operating activities 31.1 29.7Net interest paid (3.3) (2.8)Tax paid (5.5) (5.9)Capital expenditure (7.8) (12.8)Acquisitions and disposals (1.8) (0.1)Preference dividend paid (2.4) (2.2)Equity dividend paid (6.9) (5.5)

Net cash flow before financing 3.4 0.4Issue of share capital 0.0 0.0Exchange 0.9 (0.7)

Decrease / (increase) in net debt 4.3 (0.3)

Interest cover 6.9 * 8.8

£ million 2001 2000

* Calculated on operating profits – continuing operations before exceptional items, net interest restated to exclude the costs of cancelling interest rate swaps