Final Results

CML Microsystems PLC
11 June 2002



                            CML MICROSYSTEMS Plc
                            2002 FINAL RESULTS

   Results down in-line with profits warning but above market expectations

CML Microsystems Plc ('CML'), which designs, manufactures and markets a broad
range of semiconductor products, primarily for the global communications market,
announces its Final Results for the full year ended 31 March 2002.

CML's semiconductor circuits and devices serve customers in electronic
manufacture, assembly and distribution in the wire-line telecom, wireless data
and private mobile radio/land mobile radio markets.  CML is listed on the London
Stock Exchange and is traded OTC as an ADR in the US.  The Group has five
operating subsidiaries in the UK, the US and Singapore.

Commenting on the results, George Gurry, Chairman said:

'Although these results bear the impact of the severe progressive and widespread
downturn that took place across the group's principal trading markets during the
year, and which had its greatest effect on the performance of the group during
its second half, I am pleased to say that the final figures represent a rather
better overall outcome than either the group or reportedly the investment market
had been expecting.'


Financial Highlights

•       Sales of £16.247m (2001: £21.719m), down 25.2%
•       Very sharp drop in second half product shipments
•       Operating profit of £1.588m (2001: £4.758m), down 66.6%
•       Pre-tax profits of £2.101m (2001: £5.324m), down 60.5%; but above market
        expectations
•       Tax rate down to 13.48% due to new R&D Tax Credit legislation
•       11.9% of net revenues spent on R&D
•       Basic EPS of 12.51p (2001: 26.28p), down 52.4%
•       Net cash reserves of £11.77m (2001: £10.9m)
•       Maintained final dividend of 10.5p, payable 2 August 2002


Business Review

•       Lower sales recorded in each principal market territory
•       Month on month bookings show improvement in the opening months of the
        current year
•       Improved integration of communications and marketing operations in main
        semiconductor businesses
•       Single unified 'CML' semiconductor business identity implemented across
        all market territories
•       Rolling programme for new product development
 


Regarding prospects, George Gurry, Chairman said:

'Group shipments in the closing month of March were somewhat higher than had
been expected and I can add that month on month bookings have continued to show
improvement into the opening months of the current year. Nevertheless, I note
that 'market' personnel - across customers and suppliers alike - continue to
have a nervous and very cautious view of the markets, and it remains difficult
to uncover clear grounds to feel confident that a general upturn is imminent.



'That said, I have every confidence that your Company will respond effectively
to both the problems and the opportunities of this current year.'



Enquiries:



CML Microsystems Plc                          www.cmlmicroplc.com
Nigel Clark, Financial Director               020 7786 9600 (today)
Chris Gurry, Business Development Director    01621 875500 (thereafter)

Binns & Co PR
Peter Binns/Simon Ellis/Paul McManus          020 7786 9600



CML MICROSYSTEMS PLC

PRELIMINARY RESULTS

Chairman's Statement

Although these results bear the impact of the severe progressive and widespread
downturn that took place across the group's principal trading markets during the
year, and which had its greatest effect on the performance of the group during
its second half, I am pleased to say that the final figures represent a rather
better overall outcome than either the group or reportedly the investment market
had been expecting.

The continuing decline experienced with product shipments into the last quarter,
which was announced through the London Stock Exchange in late February, was not
evident in the case of shipments during the final month, which was helpful
towards reducing the operational loss that the group had as an internal forecast
for the second half.  The halt in the month on month fall in shipments seen by
the closing month is not construed as indicative of a general market upturn.

For the full trading year ending 31st March 2002, the group's product sales show
a £5.472m fall to £16.247m, which is 25.2% down against the sales recorded for
the previous year (2001: £21.719m).  This shortfall resulted mostly from the
very sharp drop in product shipments seen in the second half, when sales
billings were down by over £3m against the sales figure recorded for the opening
half.

As a consequence of this shortfall in sales, the group's operating profit is
down by 66.6% to £1.588m (2001: £4.758m), and an operating loss of approximately
£0.51m was incurred for the second half.

With net interest earnings falling by 9.4% to £513k (2001: £566k), the result
mainly of the general decrease in key interest rates taking place through the
year, the group posted a pre-tax profit outcome of just £2.101m, a 60.54%
reduction against the pre-tax figure reported for the year earlier (2001:
£5.324m).

On a happier note, the group has continued to benefit from the recent R&D Tax
Credit legislation, as befits its very positive investment stance towards this
area, and the tax charge of approximately £283k represents a 13.48% tax rate for
the year.

Basic earnings per share show an expected fall on the back of the reduced
trading results, although the extent of the drop is alleviated somewhat by the
lower tax rate that the group's business profile attracts.

At 12.51p per ordinary share, this EPS figure is 52.40% down against the figure
for the year previous (2001: 26.28p per share), with the small number of new
shares issued in the year having no material effect in this outcome.

The group's net cash reserves amounted to £11.77m at the year-end, up from the
£10.9m reported at the previous year close, corresponding to a cash equivalent
of 80.54p per ordinary share (2001: 74.65p per share).  Overall net assets per
share also grew slightly to stand at 141.31p per share.

Your Directors do not conceal their disappointment that these results include
earnings that are so significantly down against the expectations for further
improvement that they had held at an earlier point.  They nevertheless recognise
the role that the quite exceptional recent conditions in the group's market
places have performed in arriving at this outcome, and they believe that
effective steps are being taken to manage the securing of group opportunities in
these circumstances.

Your Directors are confident that your Company has the financial and operational
strengths sufficient to achieve its planned return to growth, and they believe
that the current results can be appropriately accompanied by the payment of a '
same again' dividend.  Your Directors are therefore recommending the payment of
a dividend of 10.5p per ordinary share (2001: 10.5p per share), which will be
payable, if approved, on 2nd August 2002 to all shareholders registered as on
5th July 2002.

It would be difficult to exaggerate the completeness of the collapse taking
place across the group's markets over the year.  Lower sales were recorded for
each and every principal market territory, with sales into the Americas down by
more than one half compared with the year previous, and a fall was similarly
experienced in total product sales into each of the three principal
semiconductor product markets.

Steps were taken during the year to improve the integration of communications
and marketing operations in the main semiconductor businesses, and measures
aimed to increase the efficiency of other activities were also put in place.
Further steps included changes of name for the main UK and US based operating
companies, thereby presenting a single unified 'CML' semiconductor business
identity throughout all of the group's market territories.

As you would expect, the difficulties in the marketplace did not deflect the
group from continuing its strong investment in its rolling product development
programme, with spending maintained at a similar level to that in the previous
year, and a steady number of products were either announced, released or had
reached the final stages of market release.

As I have reported, group shipments in the closing month of March were somewhat
higher than had been expected and I can add that month on month bookings have
continued to show improvement into the opening months of the current year.
Nevertheless, I note that 'market' personnel - across customers and suppliers
alike - continue to have a nervous and very cautious view of the markets, and it
remains difficult to uncover clear grounds to feel confident that a general
upturn is imminent.

That said, I have every confidence that your Company will respond effectively to
both the problems and the opportunities of this current year, and I do look
forward to reporting to you at the halfway point.

I cannot close without drawing your attention to the vital contribution made
towards the success and strength of your Company by the group's employees
worldwide.  On your behalf, and on behalf of your Directors, I extend our
sincere thanks for their loyal support and effort throughout the year.



G W Gurry
Chairman

11th June 2002




PRELIMINARY RESULTS

GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31st March 2002


                                                                                Unaudited           Audited

                                                                                     2002              2001
                                                                                    £'000             £'000

Turnover                                                                           16,247            21,719

Operating Profit                                                                    1,588             4,758

Profit on Ordinary Activities before Interest and Taxation                          1,588             4,758

Interest Receivable                                                                   513               566

Profit on Ordinary Activities before Taxation                                       2,101             5,324

Taxation                                                                            (283)           (1,537)

Profit on Ordinary Activities after Taxation                                        1,818             3,787

Minority Interest                                                                      11                13

Profit for the financial year                                                       1,829             3,800

Proposed dividend                                                                 (1,535)           (1,534)

Retained profit for year                                                              294             2,266

Earnings Per Share
Basic                                                                              12.51p            26.28p

Diluted                                                                            12.33p            25.76p

Statement of Total Recognised Gains and Losses

Profit for the financial year                                                       1,829             3,800

Currency translation differences on foreign currency net
  investments                                                                        (31)               716

Total recognised gains and losses for year                                          1,798             4,516

Prior year adjustment                                                               (516)                 -

Total gains and losses recognised since
  last Report and Accounts                                                          1,282             4,516




PRELIMINARY RESULTS

GROUP BALANCE SHEET
at 31st March 2002

                                                                                Unaudited           Audited
                                                                                                   restated
                                                                                     2002              2001
                                                                                    £'000             £'000
Fixed Assets
Tangible Assets                                                                     9,280             9,858

Current Assets
Stocks                                                                              1,633             2,037
Debtors                                                                             2,079             2,900
Investments                                                                         9,207             8,733
Cash at bank and in hand                                                            2,566             2,173

                                                                                   15,485            15,843

Creditors:
Amounts falling due within one year                                               (3,577)           (4,778)

Net Current Assets                                                                 11,908            11,065

Total Assets Less Current Liabilities                                              21,188            20,293

Provisions for liabilities and charges                                              (532)             (530)

Net Assets                                                                         20,656            20,393

Capital and Reserves
Called up Share Capital                                                               731               730
Share Premium Account                                                               3,237             3,226
Capital Redemption Reserve                                                            255               255
Profit and Loss Account                                                            16,433            16,171

Shareholders' Funds                                                                20,656            20,382

Minority Interests                                                                      -                11

                                                                                   20,656            20,393




PRELIMINARY RESULTS

GROUP CASH FLOW STATEMENT
for the year ended 31st March 2002


                                                                                Unaudited           Audited
                                                                                     2002              2001
                                                                                    £'000             £'000

Net cash in flow from operating activities                                          2,932             5,759

Returns on investments and servicing of finance                                       513               566

Taxation                                                                            (863)             (835)

Capital expenditure and financial investment                                        (163)           (1,091)

Equity dividends paid                                                             (1,534)           (1,217)

Net cash in flow before financing                                                     885             3,182

Financing                                                                              12               439

Increase in cash                                                                      897             3,621


Notes

1.The profit and loss account, balance sheet and cash flow statement are an
abridged version of the Company's full accounts which have not yet been filed
with the Registrar of Companies and which have not yet been reported on by the
Company's auditors.

2. A dividend of 10.5p per Ordinary Share (2001: 10.5p per Ordinary Share) is
recommended in respect of the year ended 31st March 2002 and will be paid on 2nd
August 2002 to shareholders on the register as at 5th July 2002.

3. The calculation of earnings per share is based on the earnings attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during the year.

The calculation of diluted earnings per share is based on the basic earnings per
share adjusted to allow for the issue of shares on the assumed conversion of all
dilutive options.

4. The same accounting policies have been used for the year ended 31st March
2002 as for the year ended 31st March 2001, except that the group's accounting
policy for deferred taxation was changed during the year in order to comply with
FRS 19 . The 2001 Audited figures have been restated to reflect this new policy.

5. The preliminary announcement was approved by the Board of Directors on 10th
June 2002.



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