Trading Update

Oxford Instruments PLC
29 March 2000


Trading Update

Oxford  Instruments  plc, the advanced instrumentation  group,
has  carried out a fundamental reorganisation of its UK  based
businesses  in the last six months to improve the exploitation
of its technology base and implement cost savings.

The performances of the Medical and Analytical businesses have
improved in the second half of the financial year and the  MRI
joint   venture  with  Siemens  is  running  well.    However,
shipments   and   margins   from  the  Group's   world-leading
Superconductivity  business continue to be  depressed  by  the
costs   associated  with  completing  certain  long-term   and
technically demanding contracts.  Following a reassessment  of
the  outstanding orders new management is increasing  the  key
resources required to accelerate completion of these projects.

Taking  into  account the performance of all  businesses,  the
Board   estimates  that  the  Group's  pre-tax  profits   from
continuing  operations and before exceptional  costs  for  the
year  to 31 March 2000 are likely to be no better than  break-
even.

Considerable  progress  has been made with  the  restructuring
programme  announced  on  16  September  1999.   The  new   UK
management  teams  have been in place since November  and  the
Group-wide  improvement  programmes  are  now  underway.    In
particular the centralised procurement initiative is on  track
to contribute significantly from next year onwards.  The major
investment  in  a new management information system  has  been
proceeding  to  plan,  providing an  additional  tool  to  aid
performance improvement.  Product lines are being rationalised
and  simplified in order to focus activities on segments where
the Group commands strong market positions.

The  headcount  in the merged businesses has been  reduced  by
150, some 30 more than the forecast made last September.  Site
consolidation plans have been brought forward and three  major
UK  properties will be vacated in the next 12 months, creating
additional cost savings from 2001 onwards and reducing by  one
third the Group's UK space.

Reflecting  these accelerated site closures and the  increased
headcount reduction, exceptional costs are estimated  to  rise
from   £6.5  million  previously  forecast,  to  a  total   of
approximately £8.5 million.  £4 million has already been spent
in  the  current year.  The Group continues to  expect  annual
savings  of  £4 million in 2000 / 01 rising to  more  than  £8
million annually from its restructuring programmes.

Andrew Mackintosh, Chief Executive of Oxford Instruments  plc,
said:
'Our  priority  is to complete the cost reduction  programmes,
including  the  site  relocations, and to  drive  forward  the
operational   improvement  projects.   These  are   aimed   at
improving  the  consistency  and profitability  of  the  Group
performance'.

For further information contact:

Andrew Mackintosh, Oxford Instruments plc    
Tel: [phone]
Martin Lamaison, Oxford Instruments plc      
Tel: [phone]
John  Rudofsky, Citigate Dewe Rogerson         
Tel:  [phone]