Trading Statement

De La Rue plc

Trading Statement

At the announcement of the Group's preliminary results in May, the Board expected Currency volumes for 2010/11 to be at similar levels to 2009/10 albeit with lower margins and with a greater than normal weighting towards the second half.

However, quality and production irregularities at one of the Group's paper production facilities have very recently been brought to the Board's attention. It is apparent that some paper production has failed to meet certain quality specifications. As a consequence the production and shipment of this specification paper has been suspended whilst the circumstances are fully investigated. Subject to the outcome of that process and clarification of the company's contractual position it is now expected that paper production and sales in 2010/11 will be materially lower than originally planned.

The full impact on the current year financial results and on the Group's prospects has yet to be determined. A further announcement will be made as soon as the Board has been able to assess the financial and operational implications of these matters.

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Notes to Editors

De La Rue is the world's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as passports, authentication labels and fiscal stamps. The company is a leading provider of cash sorting equipment and software solutions to Central Banks, helping them to reduce the cost of handling cash. De La Rue also pioneers new technologies in government identity solutions for national identification, driver's licence and passport issuing schemes. De La Rue employs approximately 4,000 people worldwide and is a member of the FTSE 250. 

For further information visit De La Rue's website at www.delarue.com