New Contract

Radstone Technology PLC 20 May 2005 For Immediate Release 20 May 2005 Radstone Announces $26.7m Contract From Raytheon Integrated Defense Systems G4DSP Quad Processor selected again for MK-48 ADCAP/ACOT program Towcester, Northamptonshire: May 20th 2005: Following clearance from its customer, Radstone Technology PLC (LSE: RST) today announced that the company had secured in March 2005 a $26.7 million contract from Raytheon Integrated Defense Systems of Tewksbury, Massachusetts. Radstone is to provide its G4DSP rugged digital signal processors for use in the latest phase of the MK-48 Advanced Capability (ADCAP)/Advanced Common Torpedo (ACOT) upgrade program, which is a joint development between the Naval Undersea Warfare Center (NUWC) of Newport, Rhode Island and Raytheon Integrated Defense Systems. Also included in the order is a quantity of Radstone's PPC4A single board computer. This most recent award brings the total value of orders received on this program to over $38.0 million. "As a business, we pride ourselves on our strength in listening to our customers and developing the products they need," said Jeff Perrin, Chief Executive of Radstone Technology. "Beyond that, Radstone leads the industry in providing long term support to our customers in programmes that can have a lifespan of many years. This order demonstrates once again that our strategy is the right one and that it is able to deliver enduring success. We're looking forward to continuing to develop our excellent relationship with Raytheon." The MK-48 ADCAP torpedo is the US Navy's premier heavyweight submarine-launched torpedo and is widely recognized as the world's most capable anti-submarine weapon. ADCAP is a wire-guided, thermal torpedo launched through the full submarine's depth and speed profile. The MK-54 LHT combines the search and homing capability of the MK-50 with the propulsion system of the MK-46 to deliver further improved lightweight torpedo performance in shallow water. About Radstone Technology PLC Radstone Technology PLC is a global provider of computer products and services at the leading edge of the IT and electronics industry. The Group's main business, Radstone Embedded Computing, designs and manufactures embedded computer products for defense and aerospace applications. Radstone's products are all based on leading-edge commercial technologies. Radstone Embedded Computing includes Radstone Digital Processing, which leads the market in the development and delivery of rugged, high performance single board computers, communications and networking modules and digital signal processors; ICS (Interactive Circuits and Systems), a leader in the field of data acquisition and processing; and Octec, a developer and manufacturer of high performance real-time video tracking and image processing solutions. Foundation Technology is the Group's Electronics Manufacturing Services business, and provides a wide range of electronic manufacturing services including design, development and fast-track prototype build, through to component procurement, automated assembly and test. For more information about Radstone Technology PLC and its business, products and services, visit the company's web site at: http://www.radstone.co.uk. For further information contact: Radstone Technology PLC Tel: +44 (0) 1327 359444 Jeff Perrin, Chief Executive Kevin Boyd, Group Finance Director Buchanan Communications Tel: +44 020 7466 5000 Tim Thompson This information is provided by RNS The company news service from the London Stock Exchange