Interim Results

CML Microsystems PLC
19 November 2002


CML MICROSYSTEMS PLC
2002 INTERIM RESULTS
Results broadly in-line with market expectations


CML Microsystems Plc ('CML'), which designs, manufactures and markets a broad
range of semiconductor products, primarily for the global communications market,
announces its Interim Results for the six months ending 30 September 2002.

CML's semiconductor circuits and devices serve customers in electronic
manufacture, assembly and distribution in the wire-line telecom, wireless data
and private mobile radio/land mobile radio markets.  CML is listed on the London
Stock Exchange and is traded OTC as an ADR in the US.  The Group has five
operating subsidiaries in the UK, the US and Singapore.

Commenting on the results, George Gurry, Chairman said:

'The results for the six months ending 30th September 2002 are broadly in line
with market expectations, but disappointing compared with our earlier internal
forecasts for the Group's principal trading markets. As indicated in my AGM
statement made on 31st July, despite first quarter sales in line with operating
expectations weakness was still very evident in a number of geographic market
territories important to the Group, such as Europe and Korea. These problems
grew deeper through the second quarter.'

Financial Highlights

•         Turnover of £6.88m (2001: £9.79m), down 30%
•         Operating profit of £71k (2001: £2.09m) - due to partial repayment of
          debt previously provided against
•         Pre-tax profits of £222k (2002: £2.37m) - expected to be subject to an
          R&D tax credit
•         Basic EPS of 1.91p per ordinary share (2001: 11.46p), slightly ahead
          of market expectations
•         Net cash reserves of £9.85m (2001: £10.96m)
•         Overall net assets per share stood at 138p (2001: 153p)
•         No Interim dividend historically

Business Review

•         European and Korean sales well short of management expectations
•         US and Singaporean operations demonstrate greater resilience
•         China is performing well - new sales operation opened in Shanghai
•         Rolling programme for new product development and expanding market
          areas continues

Regarding prospects, George Gurry, Chairman said:

'My expectation is that overall Group trading will get somewhat worse before it
begins to improve, and it will be challenging for CML to avoid reporting a loss
for the  current year to end 31 March 2003.

'That said, your directors are confident that your Company is well positioned
and well capable of emerging in good shape from this protracted market
depression.'



Enquiries:


CML Microsystems Plc                                        www.cmlmicroplc.com
Nigel Clark, Financial Director                            020 7786 9600 (today)
Chris Gurry, Business Development Director             01621 875500 (thereafter)

Binns & Co PR
Peter Binns/Paul McManus/Sam Allen                                020 7786 9600



CML MICROSYSTEMS PLC
2002 INTERIM RESULTS

Chairman's Statement

The results for the six months ending 30th September are broadly in line with
market expectations, but disappointing compared with our earlier internal
forecast for the Group's principal trading markets. As indicated in my AGM
statement on 31st July, despite first quarter sales in line with operating
expectations weakness was still very evident in a number of geographic market
territories important to the Group, such as Europe and Korea. These problems
grew deeper through the second quarter.

Group turnover for the first half of the period under review is down 30% at
£6.88m (2001: £9.79m), which has resulted in a £293k loss at the trading level
(2001: profit £2.01m).  Other operating income was significantly up, due to a
partial repayment of a debt previously provided against, which led to the Group
recording an operating profit of £71k (2001: £2.10m). Interest earnings were
almost halved to £151k (2001: £271k), reflecting a general decline in earned
interest rates and slightly lower cash reserves.  Net cash reserves are £9.85m
(2001: £10.96m). Overall net assets per share stood at 138p (2001: 153p).

The resulting pre-tax profit of £222k (2001: £2.37m) is expected to be subject
to an R&D tax credit, which will result in an overall earnings tax credit as
opposed to a charge.  This helps the reported figure for earnings per share to
be slightly ahead of market expectations at 1.91p per ordinary share (2001:
11.46p).

Although the Group has posted a small improvement in half-year results when
compared with those for the preceding six months, the outlook is not encouraging
for the second half of this current year.  Sales into Europe and Korea have
fallen well short of management expectations during the opening half. The
pronounced weakness in these markets appears set to continue in the short term.

On a more positive note, sales into the markets served by the Group's US and
Singaporean operations continue to demonstrate greater resilience, although no
significant evidence of a clear upward trend is yet apparent.  China is one
market region that is performing well in the present circumstances, and the PRC
is expected to be a growingly significant market for the Group in the future.
During this current month, the Group's Singapore operation completed the
commissioning and staffing of a sales operation in Shanghai.

The Group has not allowed conditions in its present marketplace to deflect from
its plans for future growth, and activities connected with the development of
products and expanding the Group's market areas have continued at all times.
Steps are being taken during the second half to enhance the Group's ability to
more rapidly and effectively secure benefit through expanding its product
markets.

I regret being unable to offer the prospect of an improved performance in the
second half.  The current climate for sales, coupled with a frustrating lack of
forward visibility, does not permit me that pleasure.  My expectation is that
overall Group trading will get somewhat worse before it begins to improve, and
it will be challenging for CML to avoid reporting a loss for the full year
ending 31st March 2003.

That said, your directors are confident that your Company is well positioned and
well capable of emerging in good shape from this protracted market depression.


G. W. Gurry
Chairman
19th November 2002


CML Microsystems Plc

Interim Statement for the half year ended 30th September 2002

GROUP PROFIT AND LOSS ACCOUNT

                                                                                                         
                                                                    Unaudited    Unaudited       Audited 
                                                                     6 Months     6 Months     12 Months 
                                                                          End          End           End 
                                                                   30/09/2002     30/09/01    31/03/2002 
                                                                        £'000        £'000         £'000 

Turnover                                                                6,885        9,794        16,247 
Cost of sales                                                          (2,362)      (2,513)       (4,686) 
Gross Profit                                                            4,523        7,281        11,561 
Distribution costs and administration expenses                         (4,816)      (5,274)      (10,184) 
                                                                         (293)       2,007         1,377 
Other operating income                                                    364           92           211 
Operating Profit                                                           71        2,099         1,588 

Interest Receivable                                                       151          271           513 
Profit on Ordinary Activities before Taxation                             222        2,370         2,101 

Taxation                                                                   60         (682)         (283) 
Profit on Ordinary Activities after Taxation                              282        1,688         1,818 

Minority Interest                                                          (4)         (13)           11 
Profit Attributable To Shareholders                                       278        1,675         1,829 

Basic Earnings Per Share                                                1.91p       11.46p        12.51p 


Statement of Total Recognised Gains and Losses 

                                                                                                
Profit for the financial period                                           278        1,675         1,829 

Currency translation differences on foreign                              (717)        (246)          (31) 
currency net investments                                                
                                                                         (439)       1,429         1,798 

Prior year adjustment                                                       0            0          (516) 
Total gains and losses recognised since                                  (439)       1,429         1,282 
last Report and Accounts                                              


CML Microsystems Plc

Interim Statement for the half year ended 30th September 2002

SUMMARY GROUP BALANCE SHEET

                                                               Unaudited    Unaudited       Audited 
                                                                6 Months     6 Months     12 Months 
                                                                     End          End           End 
                                                              30/09/2002     30/09/01    31/03/2002 
                                                                   £'000        £'000         £'000 
Fixed Assets                                                                    
Tangible Assets                                                    9,063        9,492         9,280 

Current Assets                                                                  
Stocks                                                             1,487        1,749         1,632 
Debtors                                                            2,489        3,287         2,080 
Investments                                                        8,742        7,078         9,207 
Cash at Bank & in Hand                                             1,117        3,885         2,566 
                                                                  13,835       15,999        15,485 
Creditors: Amounts falling                                                      
due within one year                                               (2,133)      (3,115)       (3,577) 

Net Current Assets                                                11,702       12,884        11,908 

Total Assets less current liabilities                             20,765       22,376        21,188 

Provision for liabilities and charges                               (539)           -          (532) 

Net Assets                                                        20,226       22,376        20,656 

Capital & Reserves                                                              
Called up Share Capital                                              731          731           731 
Share Premium Account                                              3,241        3,237         3,237 
Capital Redemption Reserve                                           255          255           255 
Profit & Loss Account                                             15,995       18,129        16,433 
Shareholders' Funds                                               20,222       22,352        20,656 

Minority Interests                                                     4           24             - 

                                                                  20,226       22,376        20,656 


CML Microsystems Plc

Interim Statement for the half year ended 30th September 2002

SUMMARY GROUP CASH FLOW STATEMENT

                                                                    Unaudited    Unaudited       Audited 
                                                                     6 Months     6 Months     12 Months 
                                                                          End          End           End 
                                                                   30/09/2002     30/09/01    31/03/2002 
                                                                        £'000        £'000         £'000 

Net cash in flow from operating activities                                179        1,881         2,932 
Returns on investments and servicing of finance                           151          271           513 
Taxation                                                                  (54)        (345)         (863) 
Capital expenditure and financial investment                             (104)          (2)         (163) 
Equity dividends paid                                                  (1,534)      (1,534)       (1,534) 

Net cash (out)/in flow before financing                                (1,362)         271           885 

Financing                                                                   4           12            12 

(Decrease)/Increase in cash                                            (1,358)         283           897 

Funds at start of period                                               11,773       10,906        10,906 

Translation difference                                                   (556)        (226)          (30) 

(Decrease)/Increase in cash                                            (1,358)         283           897 

Funds at close of period                                                9,859       10,963        11,773 

Analysis of funds                                                                         
Cash at Bank and in hand                                                1,117        3,885         2,566 
Current asset investments                                               8,742        7,078         9,207 
Total funds at close of period                                          9,859       10,963        11,773 



Notes

Comparative Results

The actual results for the year to 31st March 2002 as shown in this statement,
are an abridged version of the company's 2002 accounts which have been filed
with the Registrar of Companies. The report of the auditors on the 2002 accounts
was unqualified. Results for the six months ending on the 30th September 2001
are the unaudited figures published in the Interim Statement dated 20th November
2001.

Taxation

The Directors consider that tax will be payable at varying rates according to
the country of incorporation of a subsidiary and have provided on that basis.

Earnings per share

The calculation of earnings per share is based on the profit attributable to
shareholders for the period, and on a weighted average number of shares of
14,619,304 shares (2001 - 14,612,029 shares).

The calculation of earnings per share for the year ended 31st March 2002 was
based on a weighted average number of 14,615,029 shares.



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