Trading Statement

TT electronics plc
Trading Update

During  2002,  TT electronics plc continued to target its  core  markets
while, at the same time, extending its penetration into the defence  and
medical  markets. Unfortunately, demand from the telecom  industry  over
the  next  two  years remains uncertain. In the light of  this,  the  TT
electronics'   Board   decided   that  a  re-organisation   of   certain
subsidiaries  was necessary. The UK based manufacture  of  ferrites  has
been transferred to an Indian facility together with a range of ferrites
from  our USA factory, whose operations have been significantly reduced.
Printed circuit board production has been successfully consolidated into
one   factory.  These  changes  have  resulted  in  re-organisation  and
redundancy  costs being incurred. In addition, there will be appropriate
provisions  for  tangible and intangible fixed asset  impairments  which
will be reported separately.

The  Board  estimates that the profit before taxation of TT  electronics
for the year to 31 December 2002 (before any impairment provisions) will
be  in line with current analysts' forecasts, albeit at the lower end of
the  range.  At the year end TT electronics' total net indebtedness  had
been  reduced  from  the  previous year. In light  of  this,  the  Board
confirms  that, barring unknown corporate events, it intends to  declare
an unchanged final dividend.

The  automotive  electronic sensor and systems sales  continue  to  grow
successfully.  Orders and contracts already booked for  climate  control
units  supplied  by  the North American operation  show  a  doubling  of
production  by  2005.  New contracts won for the  automotive  electronic
businesses  were in excess of £180 million during 2002.  This  increased
demand  from  the  automotive  industry  for  electronic  components  in
vehicles  and  the  success  for those vehicles  using  TT  electronics'
products will continue to underpin future growth in this market.

In  the  electrical sector TT electronics has been successful in winning
an  order  worth  £3.2  million  for  sub-sea  cable  for  a  wind  farm
application.  This  is a new application for the TT  electronics'  cable
operations and builds on progress made in entering new markets announced
earlier this year.

TT electronics sold its entire holding of 2.3 million shares in Johnston
Group  PLC  on 19 December 2002 at a price of £4.25 per share, realising
£10.6 million and generating a profit on the sale of £1.2 million.

For further information please contact:

TT electronics plc                  
John W Newman, Executive Chairman:  Tel: [phone]
                                    
Biddicks                            
Zoe Biddick                         Tel: [phone]