Chairman's AGM Statement

RADSTONE TECHNOLOGY PLC 8 September 1999 Radstone Technology PLC Annual General Meeting : 8th September 1999 Chairman's Statement At today's Annual General Meeting of Radstone Technology PLC, Chairman Rhys Williams said: 'I am pleased to report that trading in the first five months of the year is in line with our expectations, with sales at £10.0 million, 25% up on the equivalent period last year. 'Gross profits in our VME business continue to benefit both from improved manufacturing productivity and from generally lower world prices for DRAMs and other silicon components. As in previous years, trading will be weighted towards the second half of the year. 'New orders for the Group were again at an exceptionally high level, taking the order book for future delivery above £27 million at the end of August, a record level. 'In August we were pleased to receive a further order for Octegra graphics processors from Lockheed Martin for the US Navy's LAMPS helicopter upgrade programme. Deliveries against this latest $10.7m (£6.4m) order will begin in 2000 and continue until 2004. Radstone was first designed in to this programme in mid 1997. 'Despite increased pressure on margins, high levels of activity continued at Foundation Technology, the Group's manufacturing service business, with substantial increases in the range of procurement, test and assembly services provided to civil aerospace customers, following last year's assimilation of the Eminent Technology business. 'As a result, Foundation Technology's sales in the first 5 months were 55% above the corresponding period last year, representing 25% of the Group's total sales in the period. 'This success is based on the provision of a highly responsive manufacturing service, operating close to the forefront of current electronics packaging technology. We continue to invest in the plant and processes which underpin that success. A major expansion of the Company's automatic in-circuit test capability was completed in the early part of the year, further extending our ability to support our most innovative customers. 'The restoration of the Group to acceptable levels of profitability continues to be a major objective for your Board. 'Against that target, the year has begun well. Growth continues in our Contract Manufacturing business, while our VMEbus products continue to enjoy substantial customer support, as demonstrated by the number and quality of recent design-wins and the level of our order book. 'We view the future with confidence. 'I also take this opportunity to confirm to shareholders that, as of 20th September 1999, Radstone's FTSE classification will be changed to 'Computer Hardware' a sub-sector of 'Information Technology Hardware'. We believe this new classification better reflects the nature of the Group's operations.' For further information, please contact: Radstone Technology PLC 01327 359444 Dr Charles Paterson, Managing Director Jeff Perrin, Finance Director Square Mile Communications Limited 0171 601 1000 Nick Oborne