Interim Results

CML Microsystems PLC
20 November 2001



For Immediate Release           7:00am                   20 November 2001

                             CML MICROSYSTEMS PLC
                           2001/02 INTERIM RESULTS

Turnover and Profits in line with expectations but prospects affected by
negative market conditions and will need to be revised

CML Microsystems Plc ('CML'), which designs, manufactures and markets a broad
range of semiconductor products, primarily for those in the communications
industry seeking low power mixed signal solutions, announces its interim
results in respect of the six months ended 30 September 2001.

CML's semiconductor circuits and devices serve customers in electronic
manufacture, assembly and distribution in the wireline telecom, wireless data
(narrow band) and two-way 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 upon the problems faced by CML in North America during the first
half, George Gurry, Chairman said: 'Conditions in that market had deteriorated
sufficiently by late second quarter that a slight shortfall against the
Group's first- half sales forecast was recorded.'


Financial highlights

*         Sales: £9.8m, as against £10.6m in 2000; due to depressed conditions
          in the US
*         Sales by region: UK & Europe 39%, Japan/Far East 40%, Americas &
          others 21%
*         Gross margins in the first half of 2001/02 show an improvement to
          over 70% (2000: 69%)
*         Pre-tax profits: £2.37m (2000: £2.44m), a 3% decline
*         Basic earnings per share were up 1.7% to 11.46p (2000: 11.27p)
*         CML elects to only pay a final dividend to shareholders and will
          maintain this course of action
*         Net cash reserves at period end amounted to £11m, a marginal
          increase on year end position


Business Review

*         CML's trading operations and design centres are supported by a
          global distribution network
*         In excess of 65 representative centres worldwide
*         In spite of the market difficulties in the US CML has enjoyed
          success in Far East and Europe
*         Customers served in the first half include: Alcatel, Bang & Olufsen,
          Kenwood, Landis & Gyr, Motorola, NEC, Novatel, Panasonic, Samsung and 
          Siemens
*         CML has effected cutbacks wherever possible without creating
          additional problems for itself
*         Continuing investment in new products to strengthen portfolio of
          over 150 products

Regarding Group prospects for the current year, Chairman George Gurry said: 'I
believe that a substantial decrease in the results is now the more likely
outcome to the present year, reflecting the very negative market conditions
that the Group is presently facing.


'On the positive side, the Group is achieving an increased level of design-win
success and investment in new products and market areas continues. I remain
confident that your company is well placed to return significant growth as
market conditions improve.'



Enquiries:
Nigel Clark, Financial Director    CML Microsystems Plc   020 7786 9600 (today)
Chris Gurry, Business Development                      01621 875500 (thereafter)
Director                                                           

Peter Binns                        Binns & Co PR Limited       020 7786 9600
Simon Ellis/Paul McManus                         020 7786 2807/020 7786 2802
                                                                           


CML MICROSYSTEMS PLC

INTERIM RESULTS

Chairman's Statement


The results reported for the first six months trading period are much in line
with the Group's internal business forecast, which indicated that a year of
further firm growth would be characterised by a fairly flat performance in the
opening half and a markedly stronger second period.


As I noted in my comments on current trading at the AGM (1st August), the
Group's sales were slightly ahead of operating forecast for the first quarter,
despite the difficult market conditions already being encountered in North
America, but conditions in that market had deteriorated sufficiently by the
late second quarter that a slight shortfall against the Group's first-half
sales forecast was recorded.


As the result, overall sales for the opening six months show a 7.6% fall to 
£9.794m against the comparative earlier figure (2000: £10.598m).  Operating
profit and pre-tax profit are both slightly down against their earlier
numbers, operating profit being down by 4.2% at £2.098m (2000: £2.190m) and
pre-tax profit down by approximately 3% at £2.369m (2000: £2.444m).


Earnings per share grew 1.7% to 11.46p (2000: 11.27p), benefiting from the
reduced tax charge available to the Company under the UK R&D investment rules.
Net cash reserves of approximately £11m were maintained at the period close.

The Group continued to make satisfying progress with various important areas
of its business operations throughout the opening period, and apart from the
slight easing in sales, these interim results could be taken to substantially
underwrite the Group's forecast for a year of further firm growth.  This would
be to disregard the depth that the downturn in the Group's markets has
currently reached, and the extraordinary lack of reliable forward market
visibility that also exists.

The semiconductor shipment schedules for the third quarter months are running
approximately 50% below the anticipated levels, and the reduced take-up is
broadly spread in territorial and market application sector.  Based only on
this reduction in shipments, the Group would expect difficulty with meeting
previous year earnings.  Given that reliable confirmation for final quarter
shipments is lacking, the Group has also quite severely reduced its earnings
expectations for this period.

It is clear that the Group is subject to the problems that are taking place in
its markets, and that my earlier expectations for a further year of improved
results will not be met.  I believe that a substantial decrease in the results
is now the more likely outcome to the present year, reflecting the very
negative market conditions that the Group is presently facing.

On the positive side, the Group is achieving an increased level of design-win
success and investment in new products and market areas continues. I remain
confident that your company is well placed to return significant growth as
market conditions improve.




G W Gurry
Chairman


20th November 2001



INTERIM RESULTS

GROUP PROFIT AND LOSS ACCOUNT
for the half year ended 30th September 2001

                                  Unaudited        Unaudited      Audited
                                   6 Months         6 Months    12 Months
                                      ended            ended        ended
                                   30/09/01         30/09/00     31/03/01
                                      £'000            £'000        £'000

Turnover                              9,794           10,598       21,719

Operating Profit                      2,099            2,191        4,758

Interest Receivable                     271              253          566

Profit on Ordinary Activities
 before Taxation                      2,370            2,444        5,324

Taxation                              (682)            (826)      (1,522)

Profit on Ordinary Activities
 after Taxation                       1,688            1,618        3,802

Minority Interest                      (13)                1           12

Profit Attributable To Shareholders   1,675            1,619        3,814

Basic Earnings Per Share             11.46p           11.27p       26.38p



INTERIM RESULTS


GROUP BALANCE SHEET
As at 30th September 2001


                                   Unaudited       Unaudited      Audited
                                       As at           As at        As at
                                    30/09/01        30/09/00     31/03/01
                                       £'000           £'000        £'000
Fixed Assets
  Tangible Assets                      9,492           9,535        9,858

Current Assets
  Stocks                               1,749           2,594        2,037
  Debtors                              3,287           3,411        2,900
  Investments                          7,078           6,389        8,733
  Cash at Bank & in Hand               3,885           2,803        2,173
                                      15,999          15,197       15,843

Creditors: Amounts falling
  due within one year                  3,115           4,703        4,778

Net Current Assets                    12,884          10,494       11,065

Net Assets                            22,376          20,029       20,923

Capital & Reserves
 Called up Share Capital                 731             730          730
   Share Premium Account               3,237           3,223        3,226
   Capital Redemption Reserve            255             255          255
   Profit & Loss Account              18,129          15,798       16,701
Shareholders' Funds                   22,352          20,006       20,912

Minority Interests                        24              23           11

                                      22,376          20,029       20,923

INTERIM RESULTS

GROUP SUMMARY CASH FLOW STATEMENT
for the half year ended 30th September 2001


                                   Unaudited       Unaudited      Audited
                                    6 Months        6 Months    12 Months
                                       ended           Ended        ended
                                    30/09/01        30/09/00     31/03/01
                                       £'000           £'000        £'000

Net cash inflow from
 operating activities                  1,881           3,050        5,759

Returns on investments and
 servicing of finance                    271             254          566

Taxation                               (345)           (282)        (835)

Capital expenditure and
 financial investment                    (2)           (328)      (1,091)

Equity dividends paid                (1,534)         (1,217)      (1,216)

Net cash inflow before financing         271          1,477        3,183


Financing                                 12            435          438

Increase in cash                         283          1,912        3,621





Notes:



1.                     Comparative Results - the actual results for the year
to 31st March 2001 as shown in this statement are an abridged version of the
Company's 2001 accounts which have been filed with the Registrar of Companies.
The report of the auditors on the 2001 accounts was unqualified. Results for
the six months ended 30th September 2000 are the unaudited figures published
in the Interim Statement dated 22nd November 2000.

2.                     Taxation - the Directors consider that tax will be
payable at varying rates according to the country of incorporation of a
subsidiary and have provided on that basis.

3.                     Earnings per share - the calculation of earnings per
share is based on the profit attributable to shareholders for the period and
on a weighted average number of shares of 14,612,029 shares (2000 - 14,367,032
shares).  The calculation of earnings per share for the year ended 31st March
2001 was based on a weighted average number of 14,460,886 shares.

4.                     This statement was approved by the Board of Directors
on 19th November 2001 and printed copies will be sent to shareholders shortly.
Additional copies will be available from the Company's registered office:
Oval Park, Langford, Maldon, Essex CM9 6WG.