Interim Results

CML Microsystems PLC
18 November 2003


                              CML MICROSYSTEMS PLC
                      YEAR END MARCH 2004 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 2003.

CML's semiconductor solutions serve customers in the wire-line telecom, wireless
data, two-way radio, non-volatile storage and general-purpose RISC/DSP markets.
CML is listed on the London Stock Exchange and is traded OTC as an ADR in the
US.  The Group has seven operating subsidiaries in the UK, Germany, the US and
Singapore.

Commenting on the results, George Gurry, Chairman said:

'The results for the six months trading period ending 30 September 2003 reflect
the modestly improving performance that I reported for the opening quarter, and
the outcome figures are in close line with internal budgets and reported current
market expectations.'

Financial Highlights (comparisons are with the immediately preceding six months
period)

• Turnover (excluding acquisitions) of £6.71m (H2 '03: £5.50m), up 22%
• Acquisitions contributed £1.56m
• Operating loss of £247k (H2 '03: Loss £649k)
• Pre-tax loss of £207k (H2 '03: £337k)

Business Review

• Acquisition of Hyperstone AG, a fabless semiconductor company, for
  €7.5 million (£5.25m) in July 2003
• Modestly improving performance continues
• Sales growth largely attributable to Far East markets, gains also made
  in the US
• Traditional major European markets remain difficult
• Signs of firmer customer confidence appearing in some areas

Regarding prospects, George Gurry, Chairman said:

'Given the present market conditions, I am not expecting a significantly
improved performance in the short term, but I believe your Company should
continue its progress back to profitability for the current year.

'The strategies being followed in these challenging times are now beginning to
secure the potential for future growth and I remain confident that the group
will make significant strides as these measures take increasing effect.'

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                                                  020 7786 9600
Paul McManus                                                 07980 541 893



                              Chairman's Statement

The results for the six months trading period ending 30th September 2003 reflect
the modestly improving performance that I reported for the opening quarter, and
the outcome figures are in close line with internal budgets and reported current
market expectations.

During the reporting period, and effective from 2nd July 2003, your Company
completed the acquisition of Hyperstone AG and the reported consolidated figures
include the performance of Hyperstone AG from that date.

Against the immediately preceding six month period turnover, excluding
Hyperstone, rose 22% from £5.502m to  £6.714m. This improvement was fuelled
largely by growth from the Far East. The operational loss (excluding Hyperstone)
was reduced by 62% from £649k to £247k and the pre-tax loss was reduced by £337k
to £207k.

I should comment that your Board has a preference towards writing down
intangible assets, which includes goodwill, in the shortest practical and
permitted time.  This results in the exceptional 'goodwill' charge of £348k
against costs; the 'goodwill' aspect of the acquisition is being fully written
off within three years.

When compared with the corresponding period last year, Group turnover increased
by 20% to £8.275m (2002: £6.885m) but the pre tax position (before exceptional)
deteriorated to a loss of £177k (2002: Profit £222k).

Although clear sales growth was achieved in Far Eastern markets, and gains were
made in the US, semiconductor sales into the Group's traditional major European
markets remained difficult during the period.  Forward market visibility was
generally limited, but signs of firmer customer confidence were appearing in
some areas.

Given the present market conditions, I am not expecting a significantly improved
performance in the short term, but I believe your Company should continue its
progress back to profitability for the current year.

The strategies being followed in these challenging times are now beginning to
secure the potential for future growth and I remain confident that the group
will make significant strides as these measures take increasing effect.


G.W.Gurry
Chairman


18th November 2003

                                                                                 CML Microsystems Plc
                                                                            Group Profit and Loss Account

                                                                       Unaudited         Unaudited       Audited
                                                                        6 Months         6 Months       12 Months
                                                                         Ended             Ended          Ended
                                                        Notes          30/09/2003       30/09/2002     31/03/2003

                                                                    £'000    £'000         £'000          £'000

Turnover


Turnover from operations excluding acquisition                                 6,714          6,885         12,387
Turnover from acquisition                                                      1,561              -              -
                                                                               8,275          6,885         12,387


Cost of sales                                                                (3,291)        (2,362)        (4,064)

Gross Profit                                                                   4,984          4,523          8,323


Distribution costs and administration expenses                               (5,329)        (4,816)        (9,634)
Exceptional goodwill written off                           3                   (348)              -              -


                                                                               (693)          (293)        (1,311)

Other operating income                                                           128            364            733

Operating (Loss)/Profit                                    4

From operations excluding acquisition                               (247)
From acquisition                                                    (318)
                                                                               (565)             71          (578)

Interest receivable                                                               70            151            256

Interest payable                                                                (30)              -              -

(Loss)/Profit on Ordinary Activities before Taxation                           (525)            222          (322)

Taxation                                                   5                      28             60            402

(Loss)/Profit on Ordinary Activities after Taxation                            (497)            282             80

Minority interest                                                                  3            (4)            (3)

(Loss)/Profit Attributable To Shareholders                                     (494)            278             77

Basic (Loss)/Earnings Per Share                            6                (3.38p)        1.91p          0.53p



Statement of Total Recognised Gains and Losses


(Loss)/profit for the financial period                                         (494)            278             77

Unrealised surplus on revaluation of properties                                    -              -            986
Currency translation differences on foreign
currency net investments                                                       (345)          (717)          (747)

Total (losses) / gains recognised since last Report                            (839)          (439)            316
and Accounts



                                                                           CML Microsystems Plc
                                                                           Group Balance Sheet

                                                               Unaudited           Unaudited            Audited
                                                                  As at              As at               As at
                                                                 30/09/03           30/09/02          31/03/2003
                                                                  £'000              £'000               £'000

Fixed Assets
Tangible assets                                                     10,392              9,063               9,937
Intangible assets                                                    3,828                  -                   -

                                                                    14,220              9,063               9,937

Current assets
Stocks                                                               1,473              1,487               1,326
Debtors                                                              3,184              2,489               2,480
Investments                                                          7,343              8,742               8,255
Cash at bank and in hand                                             2,076              1,117               1,344

                                                                    14,076             13,835              13,405

Creditors: Amounts falling
due within one year                                                (8,749)            (2,133)             (3,325)

Net Current Assets                                                   5,327             11,702              10,080

Total Assets less Current Liabilities                               19,547             20,765              20,017

Provision for liabilities and charges                                (564)              (539)               (573)

Net Assets                                                          18,983             20,226              19,444

Capital and Reserves
Called up Share Capital                                                736                731                 731
Shares to be Issued                                                    237                  -                   -
Share Premium Account                                                3,380              3,241               3,241
Capital Redemption Reserve                                             255                255                 255
Revaluation Reserve                                                    986                  -                 986
Profit and Loss Account                                             13,389             15,995              14,228

Shareholders' Funds                                                 18,983             20,222              19,441

Minority Interests                                                       -                  4                   3

                                                                    18,983             20,226              19,444



                                                                          CML Microsystems Plc
                                                                       Group Cash Flow Statement

                                                           Unaudited             Unaudited             Audited
                                                             6 Months             6 Months            12 Months
                                                               Ended                Ended               Ended
                                                             30/09/2003           30/09/02            31/03/2003
                                                               £'000                £'000                £'000

Net cash inflow from operating activities                         4,534                 179                  15
Returns on investments and servicing of finance                      40                 151                 256
Taxation                                                            253                (54)                 123
Capital expenditure and financial investment                       (88)               (104)               (339)
Acquisition of Hyperstone AG                                    (3,233)                   -                   -
Equity dividends paid                                           (1,535)             (1,534)             (1,535)

Net cash outflow before financing                                  (29)             (1,362)             (1,480)

Financing                                                           144                   4                   4

Increase/(decrease) in cash                                         115             (1,358)             (1,476)


Reconciliation of Operating Profit to Net Cash Inflow 
from Operating Activities


Operating (loss)/profit                                           (565)                  71               (578)
Depreciation                                                        352                 274                 625
Amortisation of goodwill                                            348                   -                   -
Loss/(profit) on sale of fixed assets                                 7                 (1)                 (6)
Decrease/(increase) in stock                                        173                 146                 307
Decrease/(increase) in debtors                                    1,552               (445)               (126)
Increase/(decrease) in creditors                                  2,667                 134               (207)
                                                                 4,534                 179                  15


Reconciliation of Movement of Funds

Funds at start of period                                          9,599              11,773              11,773
Translation difference                                            (295)               (556)               (698)
(Decrease)/Increase in cash                                         115             (1,358)             (1,476)

Funds at close of period                                          9,419               9,859               9,599

Analysis of Funds

Cash at bank and in hand                                          2,076               1,117               1,344
Current asset investments                                         7,343               8,742               8,255
Funds at close of period                                          9,419               9,859               9,599



                              CML Microsystems Plc
                         Notes to the Interim Statement


1. Presentation of results

This interim Statement was approved by the directors on 17th November 2003.

The results for both the current and comparative period have been prepared using
accounting policies and practices consistent with those adopted in the 2003
Report and Accounts but have not been audited.

The audited results for the year ended 31st March 2003 are an abridged version
of the company's Report and Accounts which have been filed with the Registrar of
Companies and on which the auditors gave an unqualified audit opinion.

The financial information contained in this Interim Statement does not
constitute statutory accounts as defined by Section 240 of the Companies Act
1985.

All shareholders will receive a copy of this Interim Statement which can also be
obtained from the company's registered office at Oval Park, Maldon, Essex. CM9
6WG.

2. Dividends

The directors do not recommend the payment of an interim dividend.

3. Exceptional goodwill written off

Goodwill arising on the acquisition of Hyperstone AG is being amortised over a
period of 36 months from 2nd July 2003.

4. Operating loss

The operating loss for the period to 30th September 2003 is made up as follows:

                                                                                  £'000                    £'000
        Operating loss from operations excluding Hyperstone AG                                             (247)
                             Operating profit of Hyperstone AG                       30
                              Exceptional goodwill written off                    (348)
                                                                                                           (318)
Operating loss for the period                                                                              (565)

5. Taxation

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

6. Basic (loss)/earnings per share

The calculation of basic (loss)/earnings per share is based on the (loss)/profit
attributable to shareholders for the period and on the following weighted
average number of shares in issue:

                                                                                  No of ordinary 5p shares

                               6 months ended 30th September 2003                        14,636,785
                               6 months ended 30th September 2002                        14,619,304
                                  12 months ended 31st March 2003                        14,619,941


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