GKN plc 2003 Interim Results Announcement

LONDON, Aug. 7, 2003 -- First half     First half           %
                                    2003            2002          change

  Total sales                      2,332m pounds   2,246m pounds     4%
  Operating profit                   142m pounds     105m pounds    35%
  Profit before tax                  113m pounds      80m pounds    41%
  Earnings per share                 9.6p            5.8p           66%
  Results before goodwill
  amortisation and exceptional
  items
    Operating profit                 160m pounds     161m pounds   (1)%
    Profit before tax                131m pounds     136m pounds   (4)%
    Earnings per share              12.0p           12.6p          (5)%
  Net borrowings                     933m pounds   1,004m pounds     --
  Interim dividend per share         3.8p            3.7p          2.7%

Results before goodwill amortisation and exceptional items are presented in the above table to show the underlying performance of the Group.

  Business highlights
   -- A resilient performance in a challenging environment
   -- Operating profits above expectations and broadly level with last year
   -- Driveline sales increase in difficult markets
   -- Powder Metallurgy recovery continues
   -- EH101 breaks into Japanese defence market
   -- Acquisition of Pilkington Aerospace makes GKN No.1 in military
      transparencies market
   -- Interim dividend increased in line with inflation

The full press release and appendices can be downloaded from www.gknplc.com