For immediate release 8 November 2011

Devro plc

(the "Group")

Interim Management Statement

Devro plc, the world's leading manufacturer of collagen products for the food industry, today provides an
Interim Management Statement in respect of the period from 1 July 2011 to date.
The Group is on course to meet Board expectations for the current year.
Sales volumes have shown strong growth compared to the corresponding period last year. The momentum seen in Quarter 2 has continued, helped by growth in Western Europe, Eastern Europe and Russia and with the new premium Select range, in particular, making encouraging progress in Japan. Latin America and South East Asia have also shown good growth, with volumes in the UK and Australia declining slightly. Whilst the market is very competitive in light of the wide range of pressures impacting food manufacturers, we have benefited from recent work on pricing.
As previously reported, the 2011 capital investment programme involves expenditure of approximately £45 million, with plant upgrades underway in Scotland, Czech Republic, Australia and the US. These projects remain on track to both enhance production efficiencies, and provide additional capacity through to 2013.
The new co-generation plant in Australia will be commissioned by the end of the year, and the savings generated will partially offset the expected energy cost increases across the Group in 2012.
As expected, net debt has risen since 30 June 2011, reflecting the substantial ongoing capital expenditure. As previously announced, a new £51million revolving credit facility was renegotiated on 30 September 2011 with a syndicate of four banks for a period of 5 years.
The two year project to upgrade the Enterprise Resource Planning system has now been successfully completed and this will support decision making across the Group.
Three manufacturing locations achieved accreditation to FS22000, the international standard defining food safety management requirements for organisations in the food chain and we expect the remaining site to be qualified in the near future.
As previously announced, the sale of Devro GmbH, the German distribution business, to ViskoTeepak Holding AB Ltd was completed at the end of September 2011. The cash purchase price was €1.9 million based on net book value and is subject to final adjustment.
For further information, please contact:
Devro plc
Peter Page, Chief Executive
Simon Webb, Finance Director Tel No: 01236 878205
Buchanan
Diane Stewart/ Carrie Clement/
Charles Ryland Tel No: 020 7466 5000/0131 226 6150
Further information on Devro can be found on the company's website: www.devro.com