AGM Statement

Radstone Technology PLC
12 September 2000


                  Radstone Technology PLC
                  Annual General Meeting
                             
                   Chairman's Statement

At  today's Annual General Meeting of Radstone Technology  PLC,
Rhys Williams, Chairman, will make the following statement:

'I am pleased to report that trading in the first five months of
the year has been in line with our expectations, with sales  at
£14.9  million,  50%  up on the equivalent  period  last  year.
Excluding  the  acquisition made in December  1999  sales  were
£12.0m, 20% up on a like-for-like basis.

New  orders received exceeded £27m, a 74% improvement  on  last
year,  taking  the  order book for future  delivery  above  £58
million  at  the end of August.  This represents  an  all  time
record for the Radstone Group.

Contract Electronic Manufacturing Business
Our  Contract Electronic Manufacturing business achieved  third
party shipments of £6.1 million in the first five months of the
year,  representing  41% of the Radstone Group  total.   If  we
exclude  the  new  business introduced  by  the  December  1999
acquisition, sales were 25% up on last year.

Good  progress was made in the task of upgrading the plant  and
equipment  at  the  Hawarden site to Radstone Group  standards.
The  resulting improvements enabled the unit to qualify  as  an
assembler  of  products  for  the  Group's  Embedded  Computing
business  and  to  compete  successfully  for  new  third-party
assembly  business  from design houses in  the  north  west  of
England.

The  resulting  increased order flow  and  activity  level  has
highlighted   the  remaining  management  actions   which   are
necessary  to integrate the logistics and material  procurement
functions across both manufacturing service operations.

Embedded Computing Business
The  Embedded Computing business made an excellent start to the
year.

The  transition to production status of a growing number of  US
design  wins  from  earlier  years was  a  notable  feature  of
deliveries  in  the period.  Production shipments  into  LAMPS,
(Lockheed   Martin  Federal  Systems),  Firefinder,   (Northrop
Grumman) and Trident, (General Dynamics) all contributed  to  a
shipments total some 19% above last year's level for the  first
five months.

New  design-in  activity emphasised display and digital  signal
processing applications in the avionics area, where the  volume
demands for retrofits and upgrades to existing systems are  now
large  enough to support the development of subsystem  products
aimed at specific platforms and aircraft types.

Successes in the period included the selection of our recently-
announced PMC GA2 graphics accelerator for a major F-16 cockpit
display  upgrade, where an innovative Radstone  product  design
has   delivered  substantially  improved  functionality   while
maintaining  full  compatibility  with  the  existing  aircraft
infrastructure.

At the system level, the period was especially productive in the
helicopter-borne sonar area, with important new design wins for
integrated  units based on our VMEbus product family,  both  in
the  USA  and in Europe.  These will be the subjects of further
announcements  when  the appropriate customer  clearances  have
been obtained.

After five months of the financial year, new orders received for
the  Embedded Computing business were 69% above the  equivalent
August 1999 figure.

The  main  contributor  within this  total  was  the  recently-
announced group of new Firefinder orders from Northrop  Grumman
Corporation,  totalling  $18 million.  Building  on  Radstone's
long  association with the programme, the new orders will bring
forward the introduction of new technology components into  key
subsystems,  ensuring that Firefinder remains  fully  effective
throughout its design life

Outlook
With a substantial order book for future delivery and prospects
for  new  opportunities at an unprecedented level in  both  our
businesses, the outlook for profitable growth is excellent.'

                             
For further information please contact:

Radstone Technology PLC                             01327 359444
Dr Charles Paterson, Managing Director
Jeff Perrin, Finance Director

Square Mile Communications Ltd                     020 7601 1000
Nick Oborne/Stephanie Smart