Interim Results

CML Microsystems PLC
21 November 2006


                              CML MICROSYSTEMS Plc

                                INTERIM RESULTS

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 half year ended 30 September 2006.

CML's semiconductor solutions serve customers in the wire-line telecom, wireless
data, two-way radio, memory card controller and programmable platform markets.
Operations are in the UK, Germany, the US, Singapore, China and Taiwan.

Commenting on the results, George Gurry, Chairman said:

'As advised with my AGM Statement in August, the Group's trading results for the
opening half are significantly down against those for the comparable period the
year earlier.'

Financial Highlights

•         Turnover down 34% to £9.46m (2005: £14.24m)
•         Loss before tax of £0.8m (2005: Profit before tax of £1.4m)
•         Loss per share of 4.90p (2005: Earnings per share of 7.83p)
•         Cash reserves remain at a satisfactory level

Business Review

•         Reduction in shipments to key Memory Card Controller, with customer
          exiting the Flash Memory market
•         Good progress in product markets generally
•         Increased customer design-in activity and customers entering
          production phase for two-way Radio
•         New high performance Radio Frequency product for professional digital
          radio has begun deliveries
•         Delays in new product development for Memory Controller and
          Programmable Platform areas
•         Second half losses will be materially above those recorded in the
          first half


Regarding prospects, George Gurry, Chairman said:

'I will not conceal my disappointment with these results and the present outlook
for the second half, but I balance the causes and the performance strengths of
your Company to expect a return to profitability reasonably soon thereafter.'

Enquiries:

CML Microsystems Plc                                         www.cmlmicroplc.com
Nigel Clark, Financial Director                            020 7493 3716 (today)
Chris Gurry, Business Development Director             01621 875500 (thereafter)

Parkgreen Communications Ltd                                       020 7493 3716
Paul McManus                                                       07980 541 893



                         Chairman's Statement

As advised with my AGM Statement in August, the Group's trading results for the
opening half are significantly down against those for the comparable period the
year earlier.

Group revenues for the six month period ending 30 September 2006 show a decline
of 34% to £9.46m (2005: £14.24m) and a corresponding loss is recorded of £0.8m
against the prior-year first-half profit of £1.4m.

Despite good progress within the Americas, and with products for the Group's
historic market areas, it has not been possible to offset the revenue loss
created by the severe reduction in product shipments to a key Memory Card
Controller customer during the period.  Any confidence that this reduction would
be of a short-term nature has been dispelled by their recently announced
decision to exit the Flash Memory market area where the Group's Hyperstone
products were used.

In product markets generally, good progress is being achieved through the
Group's strategy of expanding product integration, reducing time to market and
improving commercial competitiveness.  Product R&D expenditure remains strongly
focussed on this area.

We are seeing increased customer design-in activity as the result of higher
integration of features in our range of Wireline Modems for data communication,
and customers are entering production phase for Two-Way Radio equipments based
on our proprietary FirmASIC technology.  The Group's new high performance RF
(Radio Frequency) product for professional digital radio applications has begun
deliveries.

New product developments in the Memory Controller and Programmable Platform
areas have experienced difficulties and delays that have impacted product
introduction and customer adoption.  As a result, it is unlikely that key
product introductions now expected in the coming months will deliver revenue
benefit in the current financial year, and consequently second-half losses will
be materially above those recorded in the first-half.  Your Board is taking
steps to improve the Group's performance in this area.

I will not conceal my disappointment with these results and the present outlook
for the second half, but I balance the causes and the performance strengths of
your Company to expect a return to profitability reasonably soon thereafter.

G. W. Gurry
Chairman
21st November 2006



CML Microsystems Plc
Consolidated Income Statement


                                                       6 Months End          6 Months End           12 Months End 
                                                           30/09/06              30/09/05                31/03/06      
                                                              £'000                 £'000                   £'000
Continuing Operations
Revenue                                                       9,460                14,240                  26,333
Cost of sales                                               (3,455)               (6,292)                (10,473)
Gross Profit                                                  6,005                 7,948                  15,860

Distribution and administration costs                       (7,149)               (6,632)                (13,409)
                                                            (1,144)                 1,316                   2,451

Other operating income                                          374                   156                     472
Operating (loss)/profit before adjustments                    (770)                 1,472                   2,923

Share based payments                                           (40)                  (40)                    (79)
Operating (loss)/profit after adjustments                     (810)                 1,432                   2,844

Revaluation of investment properties                              -                     -                     695
Finance cost                                                  (110)                 (112)                   (233)
Finance income                                                   88                    96                     180
(Loss)/profit before tax                                      (832)                 1,416                   3,486

Income Tax                                                      100                 (250)                   (853)

(Loss)/profit for the period attributable to
equity shareholders                                           (732)                 1,166                   2,633       
(Loss)/earnings per share
Basic                                                       (4.90p)                 7.83p                  17.68p
Diluted                                                     (4.90p)                 7.77p                  17.66p



Statement of Recognised Income and Expense

                                                       6 Months End          6 Months End            12 Months End 
                                                           30/09/06              30/09/05                 31/03/06
                                                              £'000                 £'000                    £'000

(Loss)/profit for the period                                  (732)                 1,166                    2,633

Foreign exchange differences                                  (261)                   187                      350
Actuarial gain                                                    -                     -                      222
Income tax on actuarial gain                                      -                     -                     (67)

Recognised gains and losses relating to the
period                                                        (993)                 1,353                    3,138      
               

                                                         
CML Microsystems Plc

Consolidated Balance Sheet


                                                              30/09/06                30/09/05             31/03/06
                                                                 £'000                   £'000                £'000
Assets
Non current assets
Tangible assets - Property, plant and equipment                  7,084                   7,205                7,256
Tangible assets - Investment properties                          3,845                   3,150                3,845
Intangible assets - Research & development                       6,789                   5,396                6,133
Intangible assets - Goodwill on consolidation                    3,512                   3,512                3,512
Deferred tax asset                                               1,159                   1,583                1,165
                                                                22,389                  20,846               21,911
Current assets
Inventories                                                      1,766                   1,944                2,233
Trade receivables and prepayments                                3,985                   5,310                5,436
Cash and cash equivalents                                        3,978                   7,413                5,708
                                                                 9,729                  14,667               13,377

Total assets                                                    32,118                  35,513               35,288

Liabilities
Current liabilities
Bank loans and overdrafts                                        4,000                   4,000                4,000
Trade and other payables                                         2,826                   5,293                3,297
Current tax liabilities                                            302                     413                  365
                                                                 7,128                   9,706                7,662

Non current liabilities
Deferred tax liabilities                                         3,135                   2,624                3,159
Provisions                                                          52                     319                  147
Retirement benefit obligations                                   3,135                   3,504                3,135
                                                                 6,322                   6,447                6,441

Total liabilities                                               13,450                  16,153               14,103

Net Assets                                                      18,668                  19,360               21,185

Equity
Share capital                                                      747                     745                  745
Convertible warrants                                                 -                     120                  120
Capital reserves                                                 4,148                   4,039                4,039
Share based payments                                               202                     122                  162
Foreign exchange differences                                        49                     147                  310
Accumulated profits                                             13,522                  14,187               15,809
Shareholders' equity                                            18,668                  19,360               21,185




CML Microsystems Plc

Consolidated Cash Flow Statement


                                                               6 Months End        6 Months End       12 Months End
                                                                   30/09/06            30/09/05            31/03/06
                                                                      £'000               £'000               £'000
Operating activities
Net (loss)/profit for the period before income taxes                  (832)               1,416               3,486
Adjustments for:
Revaluation of investment properties                                      -                   -               (695)
Depreciation                                                            377                 295                 666
Movement in pension deficit                                               -                   -               (147)
Amortisation of research and development                              1,895               1,730               4,005
Share based payments                                                     40                  40                  79
Exceptional restructuring costs                                        (95)                   -               (273)
Interest expense                                                        110                 112                 233
Interest income                                                        (88)                (96)               (180)
Increase/(decrease) in working capital                                1,159               (537)             (2,533)
Cash flows from operating activities                                  2,566               2,960               4,641
Income tax refunded                                                     334                  99                  69
Net cash flows from operating activities                              2,900               3,059               4,710

Investing activities
Purchase of tangible fixed assets                                     (281)               (305)               (722)
Investment in intangible assets                                     (2,605)             (2,049)             (5,063)
Disposals of tangible fixed assets                                       32                   4                  19
Interest income                                                          88                  96                 180
Net cash flows from investing activities                            (2,766)             (2,254)             (5,586)

Financing activities
Issue of ordinary shares                                                  -                  32                  32
Repayment of bank loan                                                    -               (378)               (377)
Dividends paid to group shareholders                                (1,564)             (1,563)             (1,563)
Interest expense                                                      (110)               (112)               (233)
Net cash flows from financing activities                            (1,674)             (2,021)             (2,141)

Decrease in cash and cash equivalents                               (1,540)             (1,216)             (3,017)

Movement in cash and cash equivalents:
At start of period                                                    5,708               8,449               8,449
Decrease                                                            (1,540)             (1,216)             (3,017)
Effects of exchange rate changes                                      (190)                 180                 276
At end of period                                                      3,978               7,413               5,708



CML Microsystems Plc

Consolidated Statement of Changes in Equity


                              Share  Convertible     Capital Share based       Foreign     Accumulated       Total
                            capital     warrants     reserve    payments      exchange         profits
                                                                           differences
                              £'000        £'000       £'000       £'000         £'000           £'000       £'000

At 1st April 2005               744          120       4,008          82          (40)          14,584      19,498

Shares issued                     1                       31                                                    32
Foreign exchange
differences                                                                        187
                                                                                                               187
Dividends paid                                                                                 (1,563)     (1,563)
Profit for period                                                                                1,166       1,166
Share based payments                                                  40                                        40

At 30th September               745          120       4,039         122           147          14,187      19,360
  2005

Foreign exchange                                                                   163                         163
differences
Net actuarial gains
recognised directly to
equity                                                                                             222         222
Deferred tax on actuarial
gains                                                                                             (67)        (67)
Profit for period                                                                                1,467       1,467
Share based payments                                                  40                                        40

At 31st March 2006              745          120       4,039         162           310          15,809      21,185

Shares issued                     2        (120)         109                                         9           -
Foreign exchange
differences
                                                                                 (261)                       (261)
Dividends paid                                                                                 (1,564)     (1,564)
Loss for period                                                                                  (732)       (732)
Share based payments                                                  40                                        40

At 30th September               747            -       4,148         202            49          13,522      18,668
  2006


                                   CML Microsystems Plc

                                         Notes

1. Presentation of results

The directors approved this Interim Statement on 20th November 2006.

The financial information contained in this Interim Statement has been prepared
using International Financial Reporting Standards. The accounting policies used
in preparation of the Interim Statement are the same accounting policies set out
in the year ended 31st March 2006 financial statements. This Interim Statement
does not constitute statutory accounts as defined by Section 240 of the
Companies Act 1985. The financial information for the year ended 31st March 2006
is based on the statutory accounts for the financial year ended 31st March 2006
that have been filed with the Registrar of Companies and on which the auditors
gave an unqualified audit opinion. The auditors report on those accounts did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

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

2. Dividend

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

3. Income tax

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.
Deferred taxation is not reassessed at the interim stage.

                                                  6 Months End             6 Months End            12 Months End
                                                      30/09/06                 30/09/05                 31/03/06
                                                         £'000                    £'000                    £'000

UK income tax                                                -                      172                      474
Overseas income tax                                        100                    (422)                    (452)
Total current tax                                          100                    (250)                       22
Deferred tax                                                 -                        -                    (875)
Reported income tax                                        100                    (250)                    (853)

4. Earnings per share

The calculation of basic earnings per share is based on the profit attributable
to shareholders for the period and on the following weighted average number of
shares in issue:
                                                                         Ordinary 5p shares
                                                      Weighted Average Number                   Diluted

                                                                                                Number
6 months ended 30th September 2006                           14,919,839                       14,919,839
6 months ended 30th September 2005                           14,891,212                       15,004,914
12 months ended 31st March 2006                              14,892,052                       14,904,918


The calculation for diluted earnings per share takes into consideration 721,630
of shares under option at 30th September 2006.

5. Retirement benefit obligations

The directors have not obtained an actuarial report in respect of the defined
benefit pension scheme for the purpose of this Interim Statement.



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