Corus recently announced a pre-close trading update as part of the company’s program of regular market updates.

Corus' financial performance has continued to improve throughout the first half, with better market conditions, sharpened commercial focus and benefits from the Group's 'Restoring Success' initiatives, all contributing to the stronger result. For the first half of 2004 the Group's operating profit is expected to exceed £125 million compared to a loss of £57 million in the same period of 2003, and to include a return to operating profit for Corus UK steel operations.

The Group's balance sheet remains strong. Net debt at the end of June is expected to show an increase over the year-end position, due to higher working capital requirements and capital expenditure. Proceeds from the recently announced sale of the Tuscaloosa minimill are anticipated to be received in the second half of the year.

Based on the combination of further planned benefits from the 'Restoring Success' program, previously announced selling price increases and continuing favorable global supply/demand conditions, including tight raw material supplies, Corus expects continued progress in margins and profits in the second half of 2004.

Corus' interim results for the six months to the end of June 2004 will be announced on September 16, 2004.