Settlement & Issue of Equity

Zytronic PLC
25 July 2006

25 July 2006

                          Zytronic plc ('the Company')

The Company, in its 2006 Interim Statement, disclosed litigation with Ian
Lawson, a former group chief executive officer.  All claims by Ian Lawson,
whether actual or potential, have now been settled fully and finally by the
Company making a severance payment of £10,000 to him and treating, as it is
entitled to do, his Options under the Company's Enterprise Management Incentives
EMI Scheme ('the Scheme') as not having lapsed.

Mr Lawson has exercised his Options under the Scheme and, pursuant to this
exercise, the Company has allotted 142,857 Ordinary Shares of 1p each in the
Company to him.  These shares rank pari passu in all respects with the existing
issued Ordinary Shares in the Company.  Application has been made to the London
Stock Exchange for these shares to be quoted on AIM and it is expected that
dealings will commence on Monday 31 July 2006.




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