AGM Statement

Radstone Technology PLC
11 September 2002

                            Radstone Technology PLC

                             Annual General Meeting

                              Chairman's Statement

Speaking at today's Annual General Meeting of Radstone Technology PLC
("Radstone"), the world's leading independent supplier of high-performance,
embedded computer products for defence and aerospace applications, the Chairman,
Rhys Williams made the following Statement:

"I am pleased to report that trading in the first five months of the year has
been encouraging. Total Group sales were £13.9 million, some 13.1% above the
equivalent period last year.

Cash generation has been strong, following the unusually high shipment levels in
the fourth quarter of last year. As a result, gearing is now below 30% compared
with 43% at the end of last year.

New orders totalled £18.4 million, some 35% ahead of the same period last year.

Despite a book to bill ratio of 1.32, the order book, at £73.6 million, remained
at a similar level to the beginning of the year as a result of the weakness of
the US dollar. The effect in sterling of dollar devaluation at the end of August
was equivalent to an order book reduction of £4.3 million. Our existing foreign
exchange instruments ensure that our expectations for the periods to 31 March
2004 are not affected.

Embedded Computing Business

The senior business of the Radstone Group made a strong start to the year,
achieving a sales increase of 29% to £9.0 million for the period.

In the key US market, shipments recovered strongly from the depressed levels
seen in the run-up to the Quadrennial Defense Review in 2001. US shipments
increased by 56% reflecting continuing high levels of activity on the multi-year
production orders from Lockheed Martin (LAMPS), Harris (MLRS), Raytheon (ATFLIR)
and Northrop Grumman (Firefinder). Proto type deliveries on the General Dynamics
Land Systems Abrams upgrade programme were made during this period, with the
main production deliveries to start in the second half of this year.

UK sales increased 16%, driven by a growing number of military avionics
projects, of which BAE Systems (EFA/DASS) remains the largest. Overall, non-US
sales declined slightly, due mainly to programme-related reductions in shipments
to mainland Europe.

PowerPC processors were again the largest single product category, representing
34% of Embedded Computing sales at the five-month point. PowerPC shipments were
15% above last year's equivalent figure, continuing the growth pattern of recent
years.

New orders increased by 3% to £10.2 million for the 5 month period.

As I mentioned earlier, the US market revived strongly following the September
2001 publication of the Quadrennial Defense Review, producing an increase in
orders received from this territory of 53%.

Non-US orders declined by 20%. Last year, the sector was dominated by a single
$5 million order from a new Far East customer.

This time, the largest single non-US order came from the Microwave & Systems
Division of Aselsan Inc., a major Turkish equipment manufacturer, with
requirements for integrated VMEbus systems comprising elements of Radstone's
Chassis, PowerPC and I/O product families. This initial £2.3 million order
represents the culmination of several years of account development activity and
is expected to be the first in an extended series.

Contract Electronic Manufacturing Business

UK industrial activity has remained at depressed levels in the early part of the
year, giving few signs of a general recovery in Foundation Technology's
traditional markets.

Third-party shipments were 8% below last year's £5.3 million, with virtually all
the most active customers being involved with defence-related activity, either
in the US or the UK.

Despite the sales levels, margins improved significantly, reflecting the benefit
of restructuring actions taken in the early part of this financial year.

Among other things, these actions were designed to position the business to
respond more effectively to the growing outsource requirements of major defence
equipment manufacturers and against this background, it is pleasing to note the
increased level of defence business in the order intake over the period.

New orders for future delivery recovered strongly, totalling £8.1 million for
the five months, a 124% increase over last year.

Laboratory, Office and Manufacturing Facilities

As indicated in the Annual Report, the Company is now in discussion with
architects and developers to prepare proposals for the relocation of the Group's
Towcester operations. It is expected that planning applications will be
submitted during the next few weeks.

Management

Dr Charles Paterson, who has led the Company from the Management Buy Out in 1988
and a Listing on the London Stock Exchange in 1994, has indicated his intention
to retire at the next AGM in September 2003.

I am pleased to announce that Jeff Perrin, who has been the Company's Finance
Director since 1989, will be appointed Group Managing Director following Dr.
Paterson's retirement. At that time, the Board expects to appoint an external
candidate as Finance Director.

Outlook

The Group's order book is strong and its main markets continue to grow.
Increasingly, Radstone's competitive position benefits from a product range now
well matched to the needs of a resurgent defence community. We are well placed
to take advantage of these opportunities and look forward with confidence."



Rhys Williams

Chairman

Radstone Technology PLC

                                     -ends-

Date: 11 September 2002

For further information please contact:

Radstone Technology PLC                   City Profile Group

Charles Paterson, Group Managing Director Ed Senior

Jeff Perrin, Finance Director             Simon Courtenay

01327-359444                              020-7448-3244

Web: www.radstone.com                     E-mail: [e-mail]



For more information about Radstone Technology PLC and its business, products
and services, visit the company's web site at: http://www.radstone.co.uk


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