Trading Update

Zytronic PLC
12 October 2006


For Immediate Release                                            12 October 2006



                                  Zytronic Plc


                                 Trading Update



Zytronic Plc wishes to update shareholders on trading ahead of the Company's
preliminary results announcement expected to be reported on 13 December 2006.


The second half has seen an increase of 21% in turnover over the corresponding
period last year and 17% over the first half reflecting the significant growth
internationally in our order book as reported at the time of the interim
results.


The overall increase in sales year on year of 16% was marginally behind our
expectations. However the substantial sales growth coupled with an improvement
in gross margins have resulted in a significant growth in profitability compared
with last year. Although operating profits will be below expected levels the
growth in profitability combined with a reduced corporation tax charge, should
result in Earnings per Share for the year in line with our Broker's
expectations.


The order book has continued to improve in the second half and the uptake of our
new product ZYPOS(R) by the marketplace is very encouraging for next year. With
strong demand for ZYPOS(R), the investment in new facilities in the adjoining
properties is progressing in the current quarter as indicated previously. We
expect the new facility to come on stream next summer to meet increasing demand.


The Board looks forward to updating shareholders further at the preliminary
results.


Enquiries:

Zytronic Plc                                                       0191 414 5511
John Kennair, Chief Executive
Denis Mullan, Finance Director

Buchanan Communications                                            020 7466 5000
Richard Darby, Isabel Podda





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