Trading Statement

Genus PLC 3 April 2001 For Immediate Release: 11.00 am, Tuesday 3rd April 2001 GENUS plc TRADING STATEMENT Following the announcements on 1st and 8th March 2001, relating to the outbreak of foot and mouth disease, the Board is now in a position to quantify the expected impact on the results for the year ending 31st March 2001. Limitations on access to farms in large parts of the United Kingdom from the third week in February have reduced turnover in the Breeding, Consulting and Distribution Divisions in aggregate by approximately £2.5 million below the Board's previous expectations. The Board acted swiftly to limit the impact on profitability by reducing costs and sub-contracting some staff to assist MAFF. As a result, the Group's operating profit for the year ending 31st March 2001 is forecast to be approximately £1.3 million below the level previously expected. However, it is still too early to assess the continuing impact of foot and mouth disease on trading for the forthcoming year ending 31st March 2002. Overall, the UK agricultural market is expected to remain depressed for several months although the impact varies according to sector. To date, in the main sector of Genus' business, the culling of beef and dairy cattle accounts for less than 1% of the UK herd so that the effect will be temporary and will remain only while access to farms is restricted. Thereafter, the Board believes milk and livestock prices will harden, creating a more buoyant farming economy, with increased demand for dairy bull semen to restock herds. There will also be opportunities for Genus Consulting to advise farmers planning the recovery of their businesses or deciding to exit farming. The Board believes that foot and mouth disease will accelerate the ongoing process of consolidation and structural changes in agriculture, with smaller farms being sold or diversified. However, the Board believes that the supply and demand for milk and milk products in the UK will remain unchanged, so there should be no adverse impact on the ongoing potential of Genus' business in the long-term. Richard Wood, Chief Executive, commented: 'A crisis like this has a high cost which affects customers, shareholders, suppliers and employees. With the help of our employees, Genus has worked closely with MAFF, our customers and our suppliers to mitigate the impact of the disease. I am grateful to them all for their support during this difficult period.' For further information, please contact : Genus Tel: + 44 (0)1270 536501 Richard Wood, Chief Executive N M Rothschild Tel: +44 (0)161 827 3812 Peter Bates Buchanan Communications Tel: + 44 (0)207 466 5000 Nicola How