Acquisition

Gooch & Housego PLC
07 February 2006


For Immediate Release                                            7 February 2006


                              Gooch & Housego PLC

                      ACQUISITION OF CHROMODYNAMICS, INC.


Gooch & Housego, the specialist manufacturer of advanced optoelectronic
components, materials, instruments and systems, is pleased to announce that it
has acquired ChromoDynamics, Inc. (CDI). Based in the USA, CDI is a developer of
hyperspectral imaging systems. Designed initially for use in conjunction with
high-end research microscopes, the products are targeted at biomedical research,
drug development and medical diagnostics. Future products will address a broad
range of applications including remote sensing and semiconductor inspection
systems.

CDI was founded in 1997 to transfer technology developed at Carnegie Mellon
University ('CMU'), Pittsburgh, Pennsylvania, into the commercial realm, and
benefited from grants from the National Institutes of Health (NIH) and other
funding bodies. CDI licenses key patents from CMU (exclusive to its target
markets) and has also developed its own intellectual property. Biomedical
imaging systems based on this technology have the potential to improve detection
of cancer and aid in drug development. Three first generation products have been
sold to leading biomedical research and pharmaceutical organisations, and a
fourth to a manufacturer of semiconductor inspection equipment.

CDI is now ready to commercialise the technology and make the transition from
research and development to production. Manufacturing resources and expertise
within Gooch & Housego in acousto-optic tuneable filters (the key active
component in the system), spectroscopic instrumentation and electronics will
enable CDI to achieve the scale necessary to address the market opportunity.
Initial sales are expected in the 2007 financial year. The current sole employee
and co-founder will remain with CDI as Vice President of R&D and will provide
the foundation for the new team.

The consideration for the acquisition is $1,180,000 payable in cash on
completion.

During the year to 30 June 2005, CDI had an income of $229k and made a loss of
$78,000. As at 31 May 2005, CDI had net assets of $26,000.

Contacts: 
        Gareth Jones, Chairman and Chief Executive Officer, 01460 52271
            Tim Thompson, Buchanan Communication Ltd, 020 7466 5000
            Andrew Edwards, Oriel Securities Limited, 020 7710 7600



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