Final Results

Zytronic PLC
14 December 2000

                                 ZYTRONIC PLC


          Preliminary Announcement for the Year to 30 September 2000



Zytronic Plc, a specialist manufacturer of touch screens and optical filters
for electronic displays, announces its first results since flotation in July.



  * Sales up 15% to £4.5 million (1999: £3.88m)

  * Pre-tax Profit £510,000 - EPS 2.5p

  * Cash Balances £2.2 million, at year end

  * Core business trading in line with expectations

  * Touch Screen prototype programme 'ZYTOUCH' commenced September 2000,
    production commenced November.

  * Intasolve, acquired in September, adds infra-red technology



John Kennair, Chairman commented:

'We have continued to build on the strength of the existing electronic display
business by launching 'ZYTOUCH', a product incorporating our new technology,
by making our first acquisition and by producing trading results in line with
expectations.


The touch screen market is very buoyant at the moment and 'ZYTOUCH' is being
well received with the list of potential customers being expanded on a weekly
basis. The positive response from the market place, which has presented
several major opportunities, allied to current trading lead the directors to
be optimistic about the future growth prospects of the Group.'

                                                              14 December 2000





ENQUIRIES:

Zytronic Plc                          Tel: [phone]
John Kennair, MBE                     0207 457 2020 (today only)

Chairman

College Hill Associates               Tel: [phone]
Michael Padley
Nicholas Nelson



Chairman's Statement

The year to 30 September 2000 has been an eventful period for your Company,
the main feature of this being the successful flotation on the Alternative
Investment Market. We have continued to build on the strength of the existing
electronic display business by launching 'ZYTOUCH', a product incorporating
our new technology, by making our first acquisition and by producing trading
results in line with expectations, comments on all of which I give below.


Review of the Year

Clearly the most significant event in the course of the last financial year
was the very complicated demerger of Zytronic from the Romag Group and the
subsequent flotation on AIM. The demerger and flotation processes were started
in September 1999 with the flotation occurring on 6 July 2000.


I would like to express my thanks to the company's professional advisers,
Brewin Dolphin Securities, Ward Hadaway and Ernst & Young for their invaluable
assistance in enabling the demerger and flotation to be completed so
successfully.


The funds raised have been used to repay debt and eliminate the gearing of the
Group. At the year end the cash balances were approximately £2 million, of
which £1 million is to be invested in capital equipment with the first phase
being completed in March 2001.


The demerger and flotation processes have consumed much management time in the
last financial year and there has been substantial additional expenditure on
development of Zytouch, like for like sales have increased by 15% to £4.48
million against £3.88 million in 1999. Whilst profitability in the year to
September 2000 was affected by the increased expenditure on the development of
Zytouch and the costs associated with plc status, pre-tax profits of the
continuing displays business advanced to £510,000 with total gross cash
generated from trading (operating profit before depreciation and amortisation)
at a healthy £870,000.


Touch Screens

The pre-production prototype programme for projective capacitive touch
screens, branded 'ZYTOUCH', started in September. The Company has exhibited
the new technology at a number of trade shows in North America, Europe and the
Far East, and to date some thirty companies have been supplied with
pre-production prototypes for evaluation. The touch screen market is very
buoyant at the moment and Zytouch is being well received with the list of
potential customers being expanded on a weekly basis.


Production started on a limited scale in November 2000 and we believe that we
have now resolved the inevitable technical teething problems ahead of the
commencement of full scale production. We expect output to grow steadily over
the next quarter although we do not anticipate that sales of the new touch
screen will have significant

impact on the revenues of the business until the second half of the current
financial year.




On 1 September Zytronic acquired the whole of the issued share capital of
Intasolve Limited. This acquisition gives us access to infra-red touch screen
technology which has particular application in use with plasma displays, as
well as expanding the technical base of the group. The Company has already
benefited from the expertise of Intasolve in accelerating the pre-production
prototype programme of the new touch screen technology.


Dividend

The Directors recommend a dividend payment of 1p per share for the financial
year ending 30 September 2000. This dividend, payable on 23 February 2001 to
shareholders on the register on 9 February 2001, will be a first and final
dividend representing payment for the whole of the last financial year. It is
the Directors' intention that in the future an interim dividend will be paid
following publication of the half year results and a final dividend following
publication of the full year results.


Employees

I would also like to express my most sincere thanks to all employees of the
Company. The demerger and flotation have been long and complicated processes
involving everyone in the company with considerable extra work over the past
12 months. Not only has the flotation been successfully executed but also the
trading performance of the business has been improved during the process. None
of this could have been achieved without the dedication and hard work of all
the employees of the Company.


Outlook

The electronic display business of Zytronic is in line with directors'
expectations in the current financial year. We continue to receive a constant
flow of enquiries for Zytouch and anticipate sales coming on stream in the
second half of this year. The positive response from the market place, which
has presented several major opportunities, allied to current trading lead the
directors to be optimistic about the future growth prospects of the Group.


John M Kennair

Chairman


14 December 2000



GROUP PROFIT AND LOSS ACCOUNT

For the year ended 30 September 2000

                                                            2000           1999
                                                            £000           £000

Turnover

Continuing operations                                      4,485          3,878

Discontinued operations                                        -          3,102

Group turnover                                             4,485          6,980

Cost of sales                                              2,909          4,973

Gross profit

Distribution costs                                            54            139

Administrative expenses                                      996          1,173

                                                           1,050          1,312


Operating profit
Continuing operations                                        526            524
Discontinued operations                                        -            171

Group operating profit                                       526

Interest payable                                            (36)           (62)
Interest receivable                                           20              -

Profit on ordinary activities before taxation                510
Tax on profit on ordinary activities                         162            655

Profit/(loss) on ordinary activities after taxation          348              )

Ordinary dividend on equity shares                           143            869

Retained profit/(loss) for the year                          205          (891)

Earnings/(loss) per share - basic                           3.6p         (0.3)p

                diluted                                     3.6p         (0.3)p

adjusted                                                    2.5p         (0.2)p



There were no recognised gains or losses as defined in Financial Reporting
Standard No. 3 other than those stated above.


GROUP BALANCE SHEET

at 30 September 2000


                                                              2000         1999
                                                              £000         £000
Fixed assets
Intangible assets                                            2,388          357
Tangible assets                                              1,378        2,322

                                                             3,766        2,679

Current assets
Stocks                                                         837        2,128
Debtors:
Amounts falling due after one year                               -        1,100
Amounts falling due within one year                          1,263        2,962
Cash at bank and in hand                                     2,158            -

                                                             4,258        6,190

Creditors: amounts falling due within one year               1,369        6,019

Net current assets                                           2,889          171

Total assets less current liabilities                        6,655        2,850

CREDITORS: amounts falling due after more than one year         51        2,800
Provisions for liabilities and charges                          75            -

                                                             6,529           50

Capital and reserves
Called up share capital                                        143           81
Share premium                                                6,212            -
Merger reserve                                                (31)         (31)
Profit and loss account                                        205            -

Equity shareholders' funds                                   6,529           50



GROUP STATEMENT OF CASHFLOWS

For the year ended 30 September 2000
                                                               2000        1999
                                                               £000        £000

Net cash inflow from operating activities                     3,379       1,491

Return on investments and servicing of finance
Interest received                                                20           -
Interest paid                                                  (11)        (14)
Interest element of finance lease rental payments              (28)        (48)

                                                               (19)        (62)
Taxation
Corporation tax paid (including advance corporation tax)          -       (655)

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                  (1,900)           -
Payments to acquire tangible fixed assets                     (140)       (813)
Receipts from sales of intangible fixed assets                  262           -
Receipts from sales of tangible fixed assets                    806           -

                                                              (972)       (813)
Acquisitions and disposals
Purchase of subsidiary undertaking                            (100)

Equity dividends paid                                        (1,869)           -

Net cash inflow/(outflow) before financing                      419        (39)

Financing
Issue of ordinary share capital                               6,007           -
Repayment of loan to former parent                           (2,500)          -
New long term loans                                               -          29
Repayment of long term loans                                    (9)           -
Repayment of capital element of finance leases and hire       (329)         202
purchase contracts

                                                              3,169         231

Increase in cash                                              3,588         192



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/( DEBT)
                                                               2000        1999
                                                               £000        £000
Increase in cash                                              3,588         192
Cash inflow from increase in loans                                -        (29)
Repayment of loan to former parent                            2,500           -
Repayment of long term loans                                      9           -
Net repayments/(increase) of capital element of finance         329       (202)
leases and hire purchase contracts

Movement in net funds/(debt)                                  6,426        (39)
Net debt at beginning of year                                (4,459)    (4,420)

Net funds/(debt) at end of year                               1,967     (4,459)


    Preliminary Announcement for Year to 30 September 2000 Notes


 1. Basis of preparation

    The accounts are prepared under the historical cost convention and in
    accordance with applicable accounting standards.


 2. Basis of consolidation

    The group results consolidate the accounts of Zytronic Plc and all its
    subsidiary undertakings drawn up to 30 September 2000. Zytronic Displays
    Limited, which was acquired in May 2000 as part of its demerger from Romag
    Holdings Plc, has been included in the group results using the merger
    method of accounting. Accordingly, the group profit and loss account and
    statement of cash flows include the results and cash flows of Zytronic
    Displays Limited for the whole of the year to 30 September 2000.


    Intasolve Limited has been included in the group accounts using the
    acquisition method of accounting. Accordingly, the group profit and loss
    account and statement of cash flows include the results and cash flows of
    Intasolve Limited for the one month period from its acquisition on 1
    September 2000. These were not significant in the context of the group.
    The purchase consideration has been allocated to assets and liabilities on
    the basis of fair value at the date of acquisition


 3. Earnings per share

    The calculations of earnings per share are based on a profit after
    taxation of £348,000 (1999:loss £22,000), a basic weighted average of
    9,585,727 shares in issue (1999:8,141,560 shares) and a diluted weighted
    average of 9,721,179 shares in issue (1999:8,141,560 shares)


    An adjusted earnings per share statistic has been presented to reflect the
    fact that 6,036,363 shares issued on flotation were an integral part of
    the arrangement to demerge a subsidiary company from the Romag Group and
    as such should be treated as having been in issue from 1 October 1998
    under merger accounting principles.

 4. Dividends

    The recommended first and final dividend of 1p per share is payable on 23
    February 2001 to shareholders on the register on 9 February 2001.



 5. Notes to the group statement of cash flows

(a)     Reconciliation of operating profit to net cash inflow from operating
activities:


                                                                  2000     1999
                                                                  £000     £000

Operating profit                                                   526      695
Depreciation                                                       295      404
Amortisation of deferred development expenditure and licences       49       81
                                                              ________ ________
                                                                   870    1,180

Decrease/(Increase) in debtors                                   1,319  (1,403)
Decrease/(Increase) in stocks                                    2,817     (53)
(Decrease) /Increase in creditors                              (1,627)    1,767
                                                              ________ ________
Net cash inflow from operating activities                        3,379    1,491
                                                               =======  =======

 5. Notes to the group statement of cash flows - continued


(b)     Analysis of net funds/(debt):

                                                             2000          1999
                                                             £000          £000

Cash at bank and in hand                                    2,158             1
Bank overdrafts                                               (1)       (1,432)
                                                         ________      ________
                                                            2,157       (1,431)
External loans                                               (20)          (29)
Finance leases                                              (170)         (499)
Loans from former parent undertaking                            -       (2,500)
                                                         ________      ________
                                                            1,967       (4,459)
                                                          =======       =======


6. Taxation

The 1999 taxation on profit on ordinary activities was influenced by
arrangements for payment for the receipt of group relief.


 7. Report and accounts

The above results do not represent the statutory accounts. The audit report is
yet to be signed. The audited accounts will be mailed to shareholders shortly
and will be available from the registered office at Patterson Street, Blaydon,
Tyne & Wear, NE21 5SG


As explained above, the results of Zytronic Displays Limited, the group's
principal subsidiary have been included under the merger method of accounting.
Accordingly the results for the year to 30 September 1999 have been extracted
from the statutory account of Zytronic Displays Limited (formerly Romag Glass
Products Limited), which have been filed with the Register of Companies,
received an unqualified audit report and did not contain a statement under
Section 237 (2) or (3) of the Companies Act 1985.