Final Results - Year to 30 September 1999

Rodime PLC
23 November 1999


RODIME PLC ('Rodime' or 'the Company')
PRELIMINARY RESULTS FOR THE
TWELVE MONTHS ENDED 30 SEPTEMBER 1999

Chairman's Statement

Seagate Litigation 

The Company's legal action against Seagate which began in 1992 in the Central
District Court  of  California ('the District Court') continued its  progress
through  the  U.S. court system. During the year the Company was successful in
strengthening its case against Seagate.

On  16  April 1999 the Company reported the findings of the U.S. Court of Appeal
for the Federal  Circuit ('the Appeal Court') in the  appeals  lodged  by  the
Company and Seagate against the judgements issued in 1997 by the District Court.
 The Appeal  Court vacated (i.e. overturned) the previous judgements in two
important respects:

i)  In  1997  the District Court had interpreted Rodime's patent claims  to 
include thermal compensation and on this basis decided that Seagate  did  not 
infringe Rodime's  patent. The Appeal Court adopted a different interpretation 
of  these claims and decided that Rodime's claims 3,5,8 and 17 of the '383
patent do not include thermal compensation. The Appeal Court therefore
overturned the District Court's  finding  of non-infringement and has sent the
case back to the District Court for trial to resolve whether or not there has
been infringement under the new interpretation of Rodime's claims.

ii) The Appeal Court also vacated the District Court's judgement regarding
Rodime's California state law claims. These claims assert that Seagate engaged
in unfair competition and interference with Rodime's business for Seagate's
prospective economic advantage. The District Court had earlier held that Rodime
did not allege facts sufficient to state a cause of action for trial. The Appeal
Court found that there were sufficient issues of fact for these to be sent back
to the District Court for trial.

Further, as a result of the Appeal Court's decision to vacate earlier
judgements, Seagate's cross-appeal for an award of attorney's fees (which had
been previously rejected by the District Court) was not granted. Rodime received
in July 1999 a refund of the costs plus interest (approximately $250,000) that
the District Court awarded to Seagate and which Rodime paid in 1998.

The Appeal Court's findings above are favourable to Rodime.  The Appeal Court
did not grant Rodime's appeal for consequential business damages in addition to
its claims for a reasonable royalty. The exclusion of consequential damages is
not considered by the Directors to be material to the main thrust of the
litigation.

Following the issuance of the judgements described above, Seagate requested that
the  Appeal Court amend its decision, in particular that part of the judgements
relating to Rodime's California state law claims. Seagate also filed on 26 April
a combined petition for rehearing and a suggestion for rehearing en banc  (i.e.
by  all  the judges of the Appeal Court). The Appeal Court ruled against Seagate
in all three of these requests, and remanded the case back to the District Court
in July 1999.  Seagate, however, on 1 October 1999  exercised  its  right  to
petition  the  Supreme Court for a review of the Appeal Court's  judgements.  In
July 1999, the District Court recommenced proceedings that are necessary for a
jury trial to be scheduled. However, these proceedings were postponed  by  the
Court  until November to allow time for the Supreme Court to decide  whether  it
will hear Seagate's petition.

The  Directors  expect the Supreme Court's decision in the  near  future  as  to
whether  it  will accept Seagate's petition for a hearing and are encouraged by
the decisions of the Court of Appeal this year, in particular its interpretation
of  Rodime's  patent claims. The pace and outcome of the litigation  over  the 
next twelve  months  will  depend on the actions taken by the  Supreme  and 
District Courts and by the parties.

Results

The  results for the year ended 30 September 1999 improved compared to the prior
year due to lower legal and administrative expenses. The operating loss for  the
year ended 30 September 1999 was $1,000,000 (1998: $1,575,000), and the net loss
after   withholding   taxes  and  the  retained loss  were  $1,000,000 (1998:
$1,588,000).

The  Company's  running royalty revenues did not recommence during  the  current
year  (1998:  $129,000) although licenses covering the sale of products in the
U.S. continue to be in effect and royalties could recommence in future depending
on market demand for and supply of disk drives, and profitability levels of disk
drive manufacturers.

Administration  and legal costs decreased significantly for the  year  ended  30
September  1999,  and were farther reduced, as a consequence  of  the  Company's
successful appeal, by the repayment from Seagate of approximately  $250,000 of
court  costs with interest which the Company had originally paid to  Seagate  in
1998. Legal costs were lower this year because the Company's appeal was heard in
September 1998 and the Appeal Court's decision was not issued until April  1999.
In  the second half of the financial year, legal costs increased as a result  of
activity  in  both  the Court of Appeal and District Court. Looking  ahead,  the
Directors expect that legal activity and expense will increase as the case moves
towards jury trial proceedings in the District Court.

Working Capital

At 30 September 1999, the Company had an available  unused  working  capital
facility  of  $1.0 million which is convertible into zero coupon loan  stock  in
tranches  of  $0.5 million as it is drawn down. The zero coupon  loan  stock is
repayable  on  demand  if there is a material adverse change  in  the  financial
condition or prospects or the Company.

In  November 1999 this facility was increased by $1.5 million and the  Company's
bank  has  confirmed that it is likely to look favourably at a  request by the
Company  for additional financial support to further fund the jury trial.  Based
on  the  Company's projected legal costs to pursue the Seagate  litigation, the
Board  believes that this facility provides the Company with sufficient working
capital for its current needs.

Patents

The  Company's  patent portfolio was expanded during the year  and  the  Company
continues to hold, maintain and invest in several patents relating to disk drive
and  other storage system technology, other than the two patents which to date
have formed the basis of the Company's licensing and litigation programme.


Two  new  patents  were  issued by the U.S. Patent Office during  1999 covering
digital  servo  (DSP)  technology for data storage and retrieval.  Additionally,
patent  applications were filed in nine European countries to register  the  DSP
patents,  so  that  licensing rights may be generated  in  the  future  for  the
manufacture  or sale of products which can be shown to incorporate  the  patent
technology.  These patents are expected to be issued in the next twelve  months.
The   Company's  preliminary  discussions  which  began  in  1998   with   major
manufacturers regarding potential exploitation of these patents  have  not  yet
resulted  in new patent licensing but the Directors remain optimistic  that  the
DSP patents will be revenue-generating in due course.

Year 2000

During  the  year  the  Company  completed  its  assessment  of  the  risks  and
uncertainties  arising from Year 2000 issues, in relation to its operations and
systems,  and  has upgraded its internal systems in accordance  with  Year  2000
compliance  standards. The cost of upgrading its systems was not  material,  and
the  Directors  do not expect to incur significant future costs in  relation  to
Year 2000.

The  Board  takes this opportunity to thank the Company's shareholders,  bankers
and employees for their continued support.

M Melver
Chairman
23 November 1999

RODIME PLC ('Rodime' or 'the Company')
PRELIMINARY RESULTS FOR THE
TWELVE MONTHS ENDED 30 SEPTEMBER 1999

Profit & Loss Account

                                  Year ended 30 September

                                      1999         1998
                                      $000         $000

Continuing operations                              
Operating income                        -           129
Administrative expenses             (1,000)      (1,704)
                                    (1,000)      (1,575)

Operating loss and loss on ordinary
activities before taxation
Taxation                                -            (13)

Loss for the financial year         (1,000)      (1,588)

Per ordinary share                  (0.4c)        (0.6c)

Number of ordinary shares      254,274,885  254,274,885

NOTES

The earnings discussed in this statement are based on UK Generally Accepted
Accounting Practices.

Per share information is based on the weighted average number of ordinary shares
in issue and on the result after taxation for each period.

As at 30 September 1999 the sterling exchange rate was $1.65=£1 (30 September
1998 $1.70= £1).

The Directors are recommending that no dividend is paid for the year ended 30
September 1999.

The financial information for the year ended 30 September 1998/1999 has been
extracted from the audited accounts on which the auditors will give an
unqualified opinion.

The statutory accounts for the year ended 30 September 1998 have been delivered
to the Registrar of Companies.

Press enquiries

David Mathewson, non executive director (011 44)131 226 7011
Peter Bailey, managing director             001 941 422 8477