Re Contract

Radstone Technology PLC
8 May 2001

                       RADSTONE TECHNOLOGY WINS £2.35M

                             EUROFIGHTER CONTRACT

Radstone Technology PLC, (LSE:RST) the world's leading independent supplier of
high-performance, rugged VME-based computer products, announces a new
contract, received in the March quarter 2001, for £2.35m from BAE SYSTEMS,
Stanmore.

Radstone will supply customised rugged PowerPC processors for integration
within the electronic warfare suite of Eurofighter's Defensive Aids Sub-System
(DASS). The processor derives from Radstone's successful VMEbus PowerPC
family, already in service in a variety of US and European defence
applications and will be among the first 'Commercial-off-the shelf' (COTS)
computer modules to be integrated into Tranche 1 of the Eurofighter production
programme.

Radstone will replace an existing General Purpose Processor (GPP) based on
Motorola 68020 technology. A total of five processors will be used in each
DASS unit and the first production versions are due to be delivered in October
2001. The new GPP is consistent with Eurofighter's common processing module
requirement.

Radstone's experience in the military COTS market-place enabled it to provide
a ruggedised, high performance solution for the demanding operational
environment of Eurofighter in a short development timescale. The winning
solution benefits from computer architecture and packaging technology, which
has been field-proven in over 4,000 generically similar Radstone processor
units over the last five years.

Radstone's technology insertion model will enable future DASS performance
improvements to be implemented with minimal software modification and risk,
enabling seamless system upgrades to be implemented during the aircraft's
service life.

Peter York, Eurofighter DASS Project Manager, BAE SYSTEMS, commented:

'Radstone's PowerPC technology has enabled us rapidly to take advantage of
some significant advances in processor performance and packaging technology.
With their close co-operation and expertise we have been able to integrate
leading-edge silicon into the Eurofighter programme within a very demanding
timetable.'

Commenting on the win, Radstone Group Managing Director, Charles Paterson,
said,

' This is an important and prestigious contract for Radstone and one which
holds out substantial future production potential. We are delighted to be
working with BAE SYSTEMS on Eurofighter. The programme underlines the power of
our COTS technology and its value in helping system integrators to maintain
performance, cost and timescales in large development projects.'

Eurofighter is the world's most advanced swing-role combat aircraft, developed
by Alenia Aerospazio of Italy, British Aerospace, CASA of Spain and Germany's
Daimler-Chrysler Aerospace.

An overall production contract for 620 Eurofighter aircraft was signed in
January 1998. Production of the first of these is now in progress, with a
planned delivery date to the four participating partners in 2002. Production
will be carried out in three tranches between 2001 and 2014.

About Radstone Technology PLC

Radstone Technology PLC is a technology company and global provider of
computer products and services at the leading-edge of the IT and electronics
industry. The Group's main business, Radstone Technology, designs and
manufactures high-performance, embedded VME-based computer products for severe
environment applications, chiefly in the industrial and defence markets.
Radstone's products are all based on leading-edge commercial technologies and
include the most innovative and rugged single board computers, digital signal
processors, graphics and imaging processors, networking and communications
modules. Foundation Technology, the Group's Contract Electronic Manufacturing
business, provides a wide range of electronic manufacturing services including
design, development and fast-track prototype build, through to component
procurement, automated assembly and test.



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

                                   - ends -

Date: 8th May 2001

For further information please contact:
Radstone Tehnology PLC                         City Profile

Charles Paterson, Group Managing Director      Simon Courtenay

Jeff Perrin, Finance Director                  Ed Senior

01327 359444                                   E-mail: [e-mail]

                                               020 7726 8588