Summary of Impact of IFRS

Oxford Instruments PLC
12 October 2005


12 October 2005

Oxford Instruments plc

Summary of impact of International Financial Reporting Standards (IFRS)

Oxford Instruments plc, the advanced instrumentation business, today provides an
unaudited summary of the restatement to IFRS of its results for the year ended
31 March 2005. This summary is provided in advance of the publication of the
Group's interim report for the six months to 30 September 2005 on 22 November
2005, which will adopt IFRS for the first time. The comparative data (the
results for the six months to 30 September 2004 and for the 12 months to 31
March 2005) will also be reported under IFRS within the interim report.

Although the summary is unaudited the Group's auditors, KPMG Audit plc, have
reviewed the principles and methodology used in the conversion to IFRS of the
results for the year to 31 March 2005.

The principal changes of adopting IFRS in place of UK GAAP for the year ended 31
March 2005 are summarised below:

                                              For the year ended 31 March 2005
                                                   UK GAAP                IFRS
                                                        £m                  £m

Turnover from continuing operations                  156.5               154.8
Profit from operations*                                7.4                 7.4
Profit before tax from continuing
operations                                             1.3                 0.1
Shareholders' funds                                   82.0                58.0

                                           pence per share     pence per share

Underlying earnings per share *                       10.9                10.3
Basic earnings per share                               3.3                12.2

* Profit from operations and underlying earnings per share under UK GAAP is
stated before exceptional costs, goodwill amortisation, gains on disposal of
businesses and discontinued operations. Profit from operations and underlying
earnings per share under IFRS is stated before amortisation of acquired
intangible assets, certain restructuring and other non-recurring costs which the
Directors consider should be excluded in order to give a better indication of
underlying performance, gains on disposal of businesses and discontinued
operations.
     
•    Profit from operations is unchanged after the following adjustments:
     -    Development costs of £1.2m are capitalised and therefore no longer
          charged
     -    There is a reduction in the operating charge for pensions cost of
          £0.2m
     -    There is a reduction in the charge for empty properties of £0.2m
     -    Amortisation of £1.4m is charged in respect of development costs
     -    There is an increase in the charge for share based payments of £0.2m.

•    Profit before tax is £1.2m lower due to the following additional items:
     -    Amortisation of £1.1m is charged in respect of acquired intangible
          assets.
     -    There is a pension net finance charge of £0.5m
     -    There is an impairment of empty property carrying value of £0.5m
     -    Goodwill of £0.9m is no longer amortised.

•    Shareholders' funds reduce by £24.0m, comprising a reduction of £28.1m
     (after tax) as a result of the adoption of IAS 19 (retirement benefit
     obligations) and a credit in respect of other items in particular
     capitalised R&D and proposed dividends no longer being treated as a
     liability at the balance sheet date.
     
•    Underlying earnings per share decreases by 0.6p

•    The adoption of IFRS has no cash impact.

It is possible that further changes will be required to the comparative data
before it is published in the interim report and the final report and accounts
for the year ended 31 March 2006, as not all the IFRS statements have been
formally endorsed by the EU and further interpretative guidance on the standards
may be issued.

The conversion to IFRS in respect of the Group's financial statements for the
year ended 31 March 2005 is set out in detail in a report entitled "Oxford
Instruments plc - conversion to IFRS" that can be downloaded from the company's
website at www.oxford-instruments.com along with a presentation summarising the
key points. Both documents can also be obtained from Shannon Pendrey at the
Company's registered office at Old Station Way, Eynsham, Witney, Oxon, OX29 4TL
(email: [e-mail]).

                                      ENDS

Enquiries:
Oxford Instruments plc                               Tel [phone]
Martin Lamaison, Financial Director                  Fax [phone]

Hogarth Partnership Limited                          Tel [phone]
Rachel Hirst                                         Fax [phone]
Andrew Jaques

Notes to Editors

As a global leader in advanced instrumentation, Oxford Instruments has a broad
range of capabilities which provide the tools, processes and solutions needed to
advance fundamental nanoscience research and its transfer into commercial
nanotechnology applications. With a unique set of technologies to enable the
manipulation and observation of matter at the smallest scales, Oxford
Instruments offers solutions for the fabrication and characterisation of
nanoscale materials, structures and devices, and environments in which to
perform fundamental nanoscience. The first technology business to be spun out
from Oxford University over forty years ago, Oxford Instruments today employs
over 1,200 people, operating globally, and is listed on the London Stock
Exchange (OXIG).


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