Interim Results

CML Microsystems PLC
23 November 2004


                         CML MICROSYSTEMS Plc
                           INTERIM RESULTS
            Results slightly ahead of market expectations


CML Microsystems Plc ('CML'), which designs, manufactures and markets a broad
range of semiconductor products, primarily for the global communications market,
announces its Interim Results for the six months ending 30 September 2004.

CML's semiconductor solutions serve customers in the wire-line telecom, wireless
data, two-way radio, memory card controller and programmable platform markets.
CML is listed on the London Stock Exchange and is traded OTC as an ADR in the
US.  The Group has eight operating subsidiaries in the UK, Germany, the US and
Singapore, with branches in China and Taiwan.

Commenting on the results, George Gurry, Chairman said:

'The trading results for the opening half are somewhat ahead of the level of
improvement expected by your board, and represent a positive indication for the
progress that the Group is achieving under its plans aimed towards material
future growth.'

Financial Highlights
     
•    Turnover up 40% to £11.559m (H2 '03: £8.275m)
•    First full contribution by Hyperstone to a reporting period, acquired July 
     2003
•    Pre-tax profit (before exceptional goodwill write off) of £1.127m (H2'03: 
     £117k loss)
•    Pre-tax profit (after exceptional goodwill write off) of £346k (H2 '03: 
     £525k loss)
•    Group Balance Sheet improved and cash reserves remain at a satisfactory 
     level

Business Review

•    Increased sales of Memory Controller products
•    Higher shipments of Telecom devices for mainland China
•    Increased sales for Radio and Wireless Data applications - design wins
     expected from new products
•    Significant new product introductions expected in H2 and early next year
•    Forward order visibility remains short-term - H1 gains from China not
     expected to be sustained in H2


Regarding prospects, George Gurry, Chairman said:

'I am confident that the Group is on a right course towards an increasingly
successful future, and am hopeful that full year trading should fall in line
with expectations.'


Enquiries:

CML Microsystems Plc                                        www.cmlmicroplc.com
Nigel Clark, Financial Director                            020 7786 9600 (today)
Chris Gurry, Business Development Director             01621 875500 (thereafter)

Binns & Co PR
Peter Binns                                                        020 7153 1485
Paul McManus                                                       07980 541 893


                              Chairman's Statement


I am pleased to say that the trading results for the opening half are somewhat
ahead of the level of improvement expected by your board, and represent a
positive indication for the progress that the Group is achieving under its plans
aimed towards material future growth.

These results include the first full contribution by Hyperstone, acquired in
July 2003, to any reporting period for the group.

The results show that group sales for the six months period ending 30 September
2004 rose to £11.559m, an increase of approximately 40% on the figure reported
for the corresponding period the year previously (2003: £8.275m), which is a
satisfying margin over the improvement budgeted for the opening half.

If the exceptional goodwill written-off in connection with the acquisition of
Hyperstone is excluded, pre-tax profit for the period shows a healthy
improvement to £1.127m (2003: £177k loss), while inclusion of the exceptional
item translates to the reported pre-tax profit of £346k (2003: £525k loss).

The Group Balance Sheet shows a slightly improved position, and cash reserves
remained at a satisfactory level throughout the period.

The increase in turnover was led by firmly increasing sales of Memory Controller
products, and similarly by rising shipments of the Group's Telecom devices for
applications within the markets of Mainland China.

Gains were also achieved in sales of products aimed at Radio and Wireless Data
applications. Apart from the sales recorded, significant design wins are
expected to result from new versions of radio communications products that were
introduced into the market during the period.

The development of semiconductor products is a continuous activity within the
Group, and will result in the market introduction of a significant number of
important new devices during this second half and the early months of next year.
R & D expenditure in the second half is planned to rise to a higher level to
support the increased level of product launch activities.

The Group's sales are now denominated largely in US dollar terms, while
operating costs are principally incurred in £ sterling and Euro currencies, and
any material further weakening in the US dollar exchange rate will not be
helpful going forward. I should also note that whilst the Group's performance in
the opening half has shown a satisfactorily continuing improvement, forward
order visibility remains short-term and, in particular, the gains achieved in
the first-half within China will not be sustained during the final two quarters.

I am, nevertheless, confident that the Group is on a right course towards an
increasingly successful future, and am hopeful that full year trading should
fall in line with expectations.


G.W.Gurry
Chairman                                                      23rd November 2004


                              CML Microsystems Plc
                         Group Profit and Loss Account

                                                                           Unaudited      Unaudited        Audited
                                                                            6 Months       6 Months      12 Months
                                                                               Ended          Ended          Ended
                                                        Notes               30/09/04       30/09/03       31/03/04

                                                                               £'000          £'000          £'000

Turnover                                                                      11,559          8,275         16,322

Cost of sales                                                                (4,500)        (3,291)        (5,999)

Gross Profit                                                                   7,059          4,984         10,323

Distribution costs and
administration expenses                                                      (6,139)        (5,329)       (10,390)
Exceptional goodwill written off                           3                   (781)          (348)        (1,171)

                                                                                 139          (693)        (1,238)

Other operating income                                                           278            128            254

Operating Profit/(Loss)                                                          417          (565)          (984)

Interest receivable                                                               47             70            126

Interest payable                                                               (118)           (30)          (121)

Profit/(Loss) on Ordinary Activities                                             346          (525)          (979)
Before Taxation

Taxation                                                   4                   (305)             28            208

Profit/(Loss) on Ordinary Activities                                              41          (497)          (771)

After Taxation

Minority interest                                                               (21)              3            (4)

Profit / (Loss) Attributable To                                                   20          (494)          (775)
Shareholders

Basic Earnings / (Loss) Per Share                          5                   0.14p        (3.38p)        (5.28p)

Diluted Earnings / (Loss) Per Share                        5                   0.13p        (3.38p)        (5.28p)

Statement of Total
Recognised Gains and Losses

Profit/(Loss) for the financial period                                            20          (494)          (775)
Currency translation differences on                                               48          (345)        (1,017)
foreign currency net investments

Total gains/(losses) recognised                                                   68          (839)        (1,792)
since last Report and Accounts



                              CML Microsystems Plc
                              Group Balance Sheet

                                                                 Unaudited           Unaudited            Audited
                                                                     As at               As at              As at
                                                                  30/09/04            30/09/03           31/03/04
                                                                     £'000               £'000              £'000

Fixed Assets
Tangible assets                                                      9,978              10,392              9,672
Intangible assets                                                    2,732               3,828              3,512

                                                                    12,710              14,220             13,184

Current assets
Stocks                                                               1,991               1,473              1,784
Debtors                                                              3,837               3,184              3,387
Investments                                                          5,316               7,343              6,934
Cash at Bank and in Hand                                             3,156               2,076              1,480

                                                                    14,300              14,076             13,585

Creditors: Amounts falling due
within one year                                                    (9,583)             (8,749)            (9,485)

Net Current Assets                                                   4,717               5,327              4,100

Total Assets less Current Liabilities                               17,427              19,547             17,284

Provision for liabilities and                                        (597)               (564)              (585)
charges

Net Assets                                                          16,830              18,983             16,699

Capital and Reserves
Called up Share Capital                                                741                 736                740
Convertible Warrants                                                   240                 237                240
Share Premium Account                                                3,630               3,380              3,589
Capital Redemption Reserve                                             255                 255                255
Revaluation Reserve                                                    986                 986                986
Profit and Loss Account                                             10,950              13,389             10,882

Shareholders' Funds                                                 16,802              18,983             16,692

Minority Interests                                                      28                   -                  7

                                                                    16,830              18,983             16,699



                              CML Microsystems Plc
                           Group Cash Flow Statement

                                                               Unaudited          Unaudited             Audited
                                                                6 Months           6 Months           12 Months
                                                                   Ended              Ended               Ended
                                                                30/09/04           30/09/03            31/03/04
                                                                   £'000              £'000               £'000

Net cash inflow/(outflow)                                          1,872                157               (596)
from operating activities
                                                                    (71)                 40                   4

Returns on investments and
servicing of finance
Taxation                                                             281                253                 329
Capital expenditure and                                            (540)               (88)               (166)
financial investment
Acquisition of Hyperstone AG                                           -            (3,233)             (3,228)
Equity dividends paid                                            (1,554)            (1,535)             (1,535)

Net cash outflow before                                             (12)            (4,406)             (5,192)
financing

Financing                                                             41              4,521               4,735

Increase/(Decrease) in cash                                           29                115               (457)


Reconciliation of operating profit/(loss) to net cash inflow/(outflow) from operating
activities

Operating profit/(loss)                                              417              (565)               (984)
Depreciation                                                         289                352                 575
Amortisation of goodwill                                             781                348               1,171
(Profit)/Loss on sale of fixed assets                               (38)                  7                   4
(Increase)/decrease in stock                                       (207)                173               (138)
(Increase)/decrease in debtors                                     (857)              1,552               1,266
Increase/(decrease) in creditors                                   1,487            (1,710)             (2,490)
                                                                   1,872                157               (596)

Reconciliation of movement of funds

Funds at start of period                                           3,868              9,599               9,599
Translation difference                                               198              (295)               (897)
Increase/(decrease) in cash                                           29                115               (457)
Cash inflow from increase in loans                                     -            (4,377)             (4,377)

Funds at close of period                                           4,095              5,042               3,868

Analysis of Funds

Cash at bank and in hand                                           3,156              2,076               1,480
Current asset investments                                          5,316              7,343               6,934
                                                                   8,472              9,419               8,414
Bank loans and overdrafts                                        (4,377)            (4,377)             (4,546)
Total funds at close of period                                     4,095              5,042               3,868




                              CML Microsystems Plc
                         Notes to the Interim Statement


1. Presentation of results

This Interim Statement was approved by the directors on 22nd November 2004.

The results for both the current and comparative period have been prepared using
accounting policies and practices consistent with those adopted in the 2004
Report and Accounts but have not been audited. The audited results for the year
ended 31st March 2004 are an abridged version of the company's Report and
Accounts which have been filed with the Registrar of Companies and on which the
auditors gave an unqualified audit opinion.

The financial information contained in this Interim Statement does not
constitute statutory accounts as defined by Section 240 of the Companies Act
1985.

All shareholders will receive a copy of this Interim Statement which can also be
obtained from the company 's registered office at Oval Park, Maldon, Essex CM9
6WG, England.


2. Dividends

The directors do not recommend the payment of an interim dividend.


3. Exceptional goodwill written off

Goodwill arising from the acquisition of Hyperstone AG is being amortised over a
period of 36 months from 2nd July 2003.


4. Taxation

The directors consider that tax will be payable at varying rates according to
the country of incorporation of a subsidiary and have provided on that basis.
The tax charge is affected by the non-deductibility of goodwill in arriving at
profits chargeable to tax.


5. Earnings/(loss) per share

The calculation of basic earnings/(loss) per share is based on the profit/(loss)
attributable to shareholders for the period and on the following weighted
average number of shares in issue:


                                                  No of Ordinary 5p shares

6 months ended 30th September 2004                14,810,378
6 months ended 30th September 2003                14,636,785
12 months ended 31st March 2004                   14,672,977


The calculation of diluted earnings per share takes into consideration 794,025
of shares under option at 30th September 2004.



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