New Factory

Gooch & Housego PLC
23 July 2002


FOR IMMEDIATE RELEASE                                23 July 2001


                              GOOCH & HOUSEGO PLC


As Chairman of Gooch & Housego I am delighted to announce today a further major
advance in the continuing planned progress and development of the Group.


As I stated in my interim report of 18th June 2002 we are to build a new factory
for Gooch & Housego in the UK. I am now in a position to provide you with
further information on the progress of this development.


The requirement for the new factory is due to the continuing and increased
demand for our products from both existing and new customers. As previously
stated the difficulties of the first half of the current financial year have now
been resolved and this is reflected in our increasing order book and a return to
full production of Q-switches. This in turn will lead to production capacity
problems in our present cramped factory.


The new factory will be built in Ilminster on a new two acre site on which we
already hold an option to purchase the freehold interest. Outline planning
consent has been submitted for approval by the planners at Somerset County
Council and we are now in a position to be able to move to detailed designs
through our Architects. The new, state of the art, factory will double our
manufacturing capacity to 50,000 sq.ft. and will lead to improved efficiencies.


We expect to start construction work on site by September 2002 with an estimated
occupation date one year later.


The overall cost is expected to be in the region of £3.5 million and will be
funded by additional bank debt, the proceeds of the sale of our existing factory
and offices, and our own cash resources.


I continue to have confidence in the future growth and development of the Group
and this is once again demonstrated by today's announcement.


For further information :

Archie Gooch                                                         01460 52271
Gooch & Housego PLC

Tim Thompson                                                       020 7466 5000
Buchanan Communications








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