Final Results

Zytronic PLC
09 December 2003

For Immediate Release                                            9 December 2003

                              ZYTRONIC PLC
          Preliminary Results for the Year ended 30 September 2003


Zytronic Plc, a leading specialist manufacturer of touchscreens and optical
filters for electronic displays, announces its preliminary results for the year
ended 30 September 2003.

Highlights

  • Turnover increased 12% to £5.7m (2002: £5.1m);

  • Loss before tax reduced to £368,000 (2002: £406,000 loss) after
    exceptional reorganisation costs of £87,000;

  • In the second half, profit before tax amounted to £83,000 (2002: £69,000)
    as compared to a loss of £451,000 (2002: loss £475,000) in the first half;

  • The closing order book at 30 September 2003 was double that of the
    previous year end;

  • Further specification approvals for Zytouch have been secured in the
    entertainment, financial services and interactive kiosk markets;

  • Field trials of Zytouch for petrol pump applications are making good
    progress;

  • Elo TouchSystems have launched a new Elo-branded Zytouch product in
    mid-October; and

  • On outlook, Chairman John Kennair said:

'The improvement in orders and sales which we saw in the second half of the year
and the continued acceptance of ZyTouch in the market place provides a sound
base for profitable growth in the future.'

Notes to Editors

Zytronic Plc is a world leader in the development and manufacture of customised
optical filters to enhance electronic display performance. It is also an
innovator in the production of specialised safety related glass and transparent
laminates for niche markets.

Through Zytronic's lamination expertise, the Company has developed a unique
range of touchscreen products which are sensitive to a pointing device through
an anti-vandal screen in front of the display. This system offers significant
benefits to electronic display manufacturers.

Enquiries:

Ian Lawson, Chief Executive
Denis Mullan, Finance Director
Zytronic plc                    (Today: 020 7466 5000; thereafter 0191 414 5511)

Richard Darby, Isabel Petre
Buchanan Communications         020 7466 5000

Chairman's Statement

There has been further progress in the development of Zytronic during the year
ended 30 September 2003.  In particular, Zytouch, the Group's unique touchscreen
product, has gained growing acceptance with a range of original equipment
manufacturers serving markets from banking through telecommunications to the
entertainment industry.  In optical filters, we have been specified, after three
years of development, for the supply of specialised filters for in-car
navigation systems.

In line with my statements to shareholders last year and at the interim stage
this year, we saw a recovery in trading during the second half of the year.

Results

Turnover for the year under review increased 12% to £5.7m (2002 - £5.1m).  After
exceptional reorganisation costs, mainly in the first half, of £87,000 (2002 -
£Nil) arising from actions taken to reduce the Group's cost base, the loss
before tax was reduced to £368,000 (2002 - £406,000).  This was made up of a
loss of £451,000 in the first half and a profit before tax of £83,000 in the
second half.

The Group's cash position remains strong with cash balances of £954,000 at the
year-end.  The Group continued to generate net cash inflows from operating
activities.

Trading

Orders recovered strongly towards the end of the first half of the year and the
improvement was maintained during the second half.  At the end of the financial
year, our closing order book was double that at the previous year end.

Further specification approvals for Zytouch during the year have substantially
expanded the number of customers the Group now serves.  This should impact in
2004 not only in assisting the growth of the business but also by adding a
degree of stability to the increased trading levels.  Trials of Zytouch for
petrol pump applications are also making good progress and prototypes are now
being tested 'in the field'.

As I mentioned in my interim statement in May, we have recently entered into an
agreement with Elo TouchSystems Inc, a global leader in touch technology.  The
Zytouch product has now successfully completed Elo's qualification programme and
was launched as an Elo branded product in October.  It is anticipated that sales
under this agreement will impact on the Profit and Loss Account in the latter
part of 2004.

I am delighted to report that we won the Kiosk Magazine 'Input Design Excellence
' Award in August.  Kiosk Magazine is the leading magazine for the kiosk
industry, which is an important user of touchscreen technology.

Personnel

I am pleased to report the appointment of Denis Mullan as Finance Director
towards the end of the financial year.  Denis brings a wealth of professional
experience and already knows Zytronic, having been involved in the AIM flotation
process three years ago when he was a partner in Ernst & Young.  He replaces
David Banks, who has been part-time Finance Director since flotation.  I am
pleased that we shall be able to retain David's knowledge and experience of
Zytronic as he has agreed to remain on the Board as a Non-Executive Director.

My thanks go to all of our personnel, who have worked hard to achieve the
turnaround in fortunes we have seen over the course of 2003.

Outlook

The improvement in orders and sales which we saw in the second half of the year
and the continued acceptance of Zytouch in the market place provides a sound
base for profitable growth in the future.


J M Kennair MBE
Chairman

9 December 2003


Group Profit and Loss Account
for the year ended 30 September 2003

                                                                                       2003        2002
                                                                                  Unaudited     Audited
                                                                   Notes              £'000       £'000

Group Turnover                                                                        5,690       5,066

Cost of sales                                                                         4,075       3,678

Gross profit                                                                          1,615       1,388

Distribution costs                                                                       80          66
Administrative expenses:   ordinary                                                   1,803       1,716
                           exceptional costs                         3                   87           -

                                                                                      1,890       1,716
                                                                                      1,970       1,782

Group operating loss                                                                  (355)       (394)

Interest payable                                                                       (35)        (33)

Interest receivable                                                                      22          21

Loss on ordinary activities before taxation                                           (368)       (406)

Tax on loss on ordinary activities                                   4                   59          85

Loss on ordinary activities after taxation                                            (309)       (321)

Ordinary dividends on equity shares                                  5                    -        (71)

Retained loss for the year                                                            (309)       (392)

Loss per share     - basic                                           6               (2.2)p      (2.2)p
                   - diluted                                         6               (2.2)p      (2.2)p



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

The results for both the above years derive from continuing operations.


Balance Sheet
at 30 September 2003

                                                                                      2003         2002
                                                                                 Unaudited      Audited
                                                                                     £'000        £'000
Fixed assets
Intangible assets                                                                    2,235        2,357
Tangible assets                                                                      2,331        2,630
                                                                                     4,566        4,987
Current assets
Stocks                                                                               1,086          895
Debtors: amounts falling due within one year                                         1,134        1,259
Cash at bank and in hand                                                               954        1,176
                                                                                     3,174        3,330
Creditors
Amounts falling due within one year                                                  1,126        1,203
Net current assets                                                                   2,048        2,127
Total assets less current liabilities                                                6,614        7,114
Creditors: amounts falling due after more than one year                                367          499
Provisions for liabilities and charges
Deferred tax                                                                            90          149
                                                                                     6,157        6,466
Capital and reserves
Called up share capital                                                                143          143
Share premium                                                                        6,212        6,212
Merger reserve                                                                           -         (31)
Profit and loss account                                                              (198)          142
Equity shareholders' funds                                                           6,157        6,466



Group Statement of Cashflows
for the year ended 30 September 2003
                                                                                                      2003         2002
                                                                                                 Unaudited      Audited
                                                                                     Notes           £'000        £'000

Net cash inflow from operating activities                                            7(a)              365          635

Return on investments and servicing of finance

Interest received                                                                                       22           21
Interest paid                                                                                         (11)          (2)
Interest element of finance lease rental payments                                                     (34)         (21)
Net outflow from returns on investments and servicing of finance                                      (23)          (2)
Taxation
Corporation tax (paid)/refunded                                                                       (86)           13
Capital expenditure and financial investment
Payments to acquire intangible fixed assets                                                           (80)        (264)
Payments to acquire tangible fixed assets                                                            (273)        (756)
Net outflow from capital expenditure and financial investment                                        (353)      (1,020)
Equity dividends paid                                                                                    -        (179)
Net cash outflow before financing                                                                     (97)        (553)
Financing
Repayment of long term loans                                                                             -         (10)
Receipts from new finance leases                                                                         -          684
Repayment of capital element of finance leases                                                       (125)        (101)
Net (outflow)/inflow from financing                                                                  (125)          573
(Decrease)/Increase in cash                                                                          (222)           20

Reconciliation of net Cashflow to movement in net funds
(Decrease)/Increase in cash                                                                          (222)           20
Repayment of long term loans                                                                             -           10
Receipts from new finance leases                                                                         -        (684)
Repayment of capital element of finance leases                                                         125          101
Movement in net funds                                                                                 (97)        (553)
Net funds at beginning of year                                                                         552        1,105
Net funds at end of year                                                             7(b)              455          552



Notes

1.  Basis of preparation

The preliminary results have been prepared under the historical cost convention
and in accordance with applicable accounting standards.  The preliminary results
have been prepared on the basis of the accounting policies set out in the
group's statutory accounts for the year ended 30 September 2002.

2.  Basis of consolidation

The group results consolidate the accounts of Zytronic Plc and all its
subsidiary undertakings drawn up to 30 September 2003.

3. Exceptional costs

The exceptional costs are reorganisation costs, principally redundancy and
associated costs.

4.  Tax Credit on loss on ordinary activities


                                                                                       2003           2002
                                                                                  Unaudited        Audited
                                                                                      £'000          £'000
Current tax:
UK corporation tax recoverable                                                            -            94
Corporation tax under provided in prior years                                             -           (44)

Total current tax                                                                         -            50

Deferred tax:
Origination and reversal of timing differences                                           59           (20)
Deferred tax over provided in prior years                                                 -            55

Group deferred tax                                                                       59            35


Tax Credit on loss on ordinary activities                                                59            85
Loss on ordinary activities multiplied by standard
   rate of UK corporation tax of 30% (2002-30%)                                         110           122
Expenses not deductible for tax purposes (includes
   amortisation of goodwill and licences)                                              (70)           (54)
Accelerated capital allowances                                                         (58)            20
Effect of marginal rates of UK corporation tax                                            -             6
Current tax under provided in prior years                                                 -           (44)
Deferred revenue expenses and tax credits                                                18             -

Total current tax                                                                         -            50



5.  Dividends

The Company has not paid any dividend (2002 interim at 0.5p per share; total
cost £71,000).

6.  Loss per share

The calculations of loss per share are based on a loss after taxation of
£309,000 (2002: £321,000), and a basic and diluted weighted average of
14,291,539 shares (2002: basic and diluted weighted average of 14,291,539
shares).

7.  Notes to the group statement of cash flows

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

                                                                  2003             2002
                                                             Unaudited          Audited
                                                                 £'000            £'000
Operating loss                                                   (355)           (394)
Depreciation                                                      500              458
Amortisation                                                      202              155
Profit on sale of fixed assets                                      -                3

                                                                   347             222

(Increase)/Decrease in stocks                                    (191)              87
Decrease in debtors                                               130              164
Increase in creditors                                              79              162

Net cash inflow from operating activities                         365              635



 (b)  Analysis of net funds


                                                      2002        Cash Flows             2003
                                                   Audited         Unaudited        Unaudited
                                                     £'000             £'000            £'000

Cash at bank and in hand                            1,176              (222)             954

Finance leases                                       (624)              125             (499)

                                                      552               (97)             455



8.  Report and accounts

The above unaudited 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.

The results for the year ended 30 September 2002 have been extracted from the
2002 accounts of Zytronic Plc. The 2002 accounts, which have been filed with the
Registrar of Companies, received an unqualified audit report and did not contain
a statement under Section 237(2) or (3) of the Companies Act 1985.


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