Contract

Radstone Technology PLC
11 September 2000

                   Radstone Technology PLC
 Radstone Technology awarded $18 million technology-upgrade
 contract from Northrop Grumman for US Army Firefinder Radar
                          Programme

Radstone   Technology  has  received  further  orders   from
Northrop  Grumman,  worth a total of  $18m,  to  supply  key
Commercial-off-the-Shelf (COTS) modules into the U.S. Army's
Firefinder    counter-battery    radar    defence    system.
Importantly, Radstone will be re-designing aspects of  these
modules to combat component obsolescence.

Re-engineering will ensure product life is extended to  meet
the anticipated production life of the latest version of the
Firefinder  system.  The first tranche of  the  new  orders,
with   related  revenues  of  approximately  $2m,  will   be
delivered  in  the  current  financial  year,  with  further
deliveries to be scheduled over the following four years.

Dr.  Robert Weber, Northrop Grumman's Programme Director for
Firefinder  said:  'This order highlights  the  benefits  of
selecting the right supplier from the outset. The management
of  component  obsolescence is a key area for any  developer
using  COTS  products  and  it is important,  therefore,  to
choose suppliers who understand the issues involved and  can
work  with  us  to maintain system integrity  and  longevity
through technology refresh.'

Peter  Cavill,  Managing  Director of  Radstone  Technology,
said:  'This  order underlines our long-term  commitment  to
what  we call Whole Programme Life COTSTM, an approach  that
aims  to  reduce  overall  cost  of  ownership  and  provide
industry-leading safeguards against obsolescence.'

Firefinder,  which is deployed in battlefield conditions  to
detect  incoming  ballistic projectiles, rapidly  calculates
the   launch  location  and  provides  targeting   data   to
counterfire batteries.

The  first generation of Firefinder was originally developed
in the early 1970s. Radstone Technology joined the programme
in  1992  when it was commissioned to upgrade the processing
core  of  the  computer  system, with the  first  production
orders placed in 1996.

Products to be re-engineered include versions of  Radstone
Technology's  VSP-1 (Vector Signal Processor) board;  CPU-44
68040-based CPU; and PIO-2 parallel I/O board.  The solution
will  include the re-design of the printed wiring boards  to
accommodate the different packaging and associated circuitry
used  by today's generation of silicon, and the re-targeting
of the design of custom ASICs to today's technology.

                        
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