Acquisition of Kemitron Manufacturing

Radstone Technology PLC 9 December 1999 Radstone Technology PLC ('Radstone' or 'the Group') Acquisition of Kemitron Manufacturing ('Kemitron') for approximately £4 million Vendor placing of 2,126,916 Ordinary Shares at 122p each. Radstone Technology PLC announced today that it has entered into an agreement to acquire the business and assets of the Kemitron Manufacturing division of Kemitron PLC ('Kemitron Manufacturing'), for a total cash consideration of up to £4.0 million. The consideration will be satisfied as to £2.595 million in cash by the allotment of 2,126,916 ordinary shares of 12.5p each ('Placing Shares') all of which are to be placed with financial institutions at 122p each. The consideration will be adjusted, on a pound for pound basis, if net assets at completion are less than £1.25 million. Completion is expected to take place on 10 December 1999. Kemitron Manufacturing, a division of Kemitron PLC, is focused on state- of-the-art electronic assembly and testing and will be merged with Foundation Technology, Radstone's subsidiary which provides surface mount assembly services. Kemitron Manufacturing will provide the Group with greater purchasing power and increased geographical coverage and is expected to be earnings enhancing in the first full year following acquisition. Kemitron Manufacturing is based in Hawarden, North Wales and achieved a contribution of approximately £1.4 million on turnover of £12.2 million in the fifteen months ended 31 March 1999. There are no pre- tax numbers available as Kemitron Manufacturing is a division of Kemitron PLC and there is no separate apportionment of certain overheads. Similarly there is no separate balance sheet, but the net assets of Kemitron Manufacturing as at 31 March 1999 are estimated to be £0.85m. Application has been made for the Placing Shares to be admitted to the Official List and it is expected that dealings will commence on 10 December 1999. Charles Paterson, Radstone Group Managing Director, commented: 'We are delighted to bring Kemitron Manufacturing into the Radstone Group. The combination of Foundation Technology and Kemitron Manufacturing strengthens our operational resilience and capabilities in contract electronic manufacturing, improves yet further our ability to respond quickly to customer needs and offers us greater purchasing power. 'Kemitron Manufacturing is a very strong business and will be of great benefit to the Group as we continue to build on the substantial progress we have made over recent years.' For further information: Radstone Technology PLC Tel: 01327 359444 Charles Paterson, Group Managing Director Jeff Perrin, Finance Director Square Mile Communications Tel: 0171 601 1000 Susan Ellis or Stephanie Smart