P R E L I M I N A R Y R E S U L T S13 March 2003

Financial Highlights 2002

Sales Continuing operations138.0127.6 Discontinued operations0.080.7138.0208.3Operating profit before exceptional items Continuing operations18.419.4 Discontinued operations0.0(0.8)18.418.6Operating margin continuing operations13.3%15.2%Exceptional items(1.8)(52.1)Net interest(2.9)(3.4)Profit/(loss) before tax13.7(36.9)Earnings/(loss) per share7.2p(29.1)pEarnings per share before exceptional items6.0p4.8pDividend per share3.0p2.0p* 2001 restated for the adoption of FRS 19 Deferred Tax

Key FeaturesMore stable business patternEdible collagen volumes ahead of prior yearAdverse currency impact of 2m on operating profitIntroduction of Porcine collagen casingsManagement structure realignment one year paybackRedemption of preference shares at a discount of 7.9mOverall indebtedness reduced from 61m to 35m

Sales Analysis 2002

Sales change vs. 2001 on a like-for-like basisVolume2.7%Price / Mix(3.0)%Operations(0.3)%Foreign Exchange0.7%Total0.4%

Regional sales by destination 2002

Sales change vs. 2001 on a like-for-like basisStronger second half in the UK market offset by weaker pricingGrowth in Western Europe marketsEastern Europe slightly behindGood Cutisin performance in both edible and non-edible collagenStrength of Czech Koruna

2002 mOperationsExchangeTotalEurope80.7(2.7)%3.3%0.6%

Regional sales by destination 2002

Sales change vs. 2001 on a like-for-like basisLike-for-like volumes aheadSolid Coria performance in the USUS collagen pricing stablePrior year comparison reflects abnormal one-off volume benefitUnderlying sales growth in the Americas maintainedAdverse exchange impact

2002 mOperationsExchangeTotalAmericas31.0(2.5)%(4.4)%(6.9)%

Regional sales by destination 2002

Sales change vs. 2001 on a like-for-like basisVolumes 10% aheadPrice / mix favourableSolid collagen sales performance in AustraliaStrong recovery of collagen volumes in South East AsiaStronger second half performance in Japan

2002 mOperationsExchangeTotalAsia/Pacific26.310.7%(0.5)%10.2%

Regional sales by destination 2002

Sales change vs. 2001 on a like-for-like basisEurope80.7(2.7)%3.3%0.6%Americas31.0(2.5)%(4.4)%(6.9)%Asia/Pacific26.310.7%(0.5)%10.2%Total138.0(0.3)%0.7%0.4%2002Full Year mOperations ExchangeTotal

Profit and Loss 2002

Sales Continuing operations138.0127.6 Discontinued operations0.080.7138.0208.3Operating profit before exceptional items Continuing operations18.419.4 Discontinued operations0.0(0.8)18.418.6Operating margin continuing operations13.3%15.2%Exceptional items(1.8)(52.1)Net interest(2.9)(3.4)Profit/(loss) before tax13.7(36.9)Tax(1.0)**(7.2)Minority interest(0.2)(0.1)Profit/(loss) for the year12.5(44.2)* 2001 restated for the adoption of FRS 19 Deferred Tax ** 2002 includes an exceptional credit of 3.2m

Earnings and Dividend 2002

Earnings per ordinary shareBasic7.2p(29.1)pDiluted7.2p(29.1)pBefore exceptional items6.0p4.8p

Dividend per ordinary share3.0p2.0p* 2001 restated for the adoption of FRS 19 Deferred Tax

Balance Sheet

Fixed assets89.291.8 Net current assets25.236.9 Long term creditors and provisions(55.7)(51.0)58.777.7Share capital, share premium and reserves56.660.1 Retained earnings(0.6)15.156.075.2Minority interest2.72.558.777.7Net debt(35.2)(24.7)Net gearing62.9%155.5%*** 2001 restated for the adoption of FRS 19 Deferred Tax ** Including preference shares as debt

Cash FlowNet cash inflow from operating activities29.331.1 Net interest paid(3.0)(3.3) Taxation1.8(5.5) Capital expenditure(5.6)(7.8) Acquisitions and disposals(1.2)(1.8) Preference dividend paid(2.3)(2.4) Equity dividend paid(3.2)(6.9)Net cash flow before financing15.83.4 Redemption of preference shares(27.7)0.0 Exchange1.30.9(Increase)/decrease in net debt(10.6)4.3Interest cover6.4*5.4**Calculated on operating profits continuing operations before exceptional items

Total IndebtednessPreference share capital36.0Net debt35.224.735.260.7

OutlookContinued focus on cash generationSatisfactory start to the yearCurrent trading in line with expectations

P R E L I M I N A R Y R E S U L T S13 March 2003