Interim Results

Gooch & Housego PLC
14 June 2000



                      GOOCH & HOUSEGO PLC
                               
    INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2000
                               
Gooch  & Housego PLC, the specialist manufacturer of precision
optical  components  and  bespoke  glass  engineering   items,
acousto-optic  devices and instruments for  measuring  optical
radiation, today announces interim results for the six  months
ended 31 March 2000.

Highlights

*   Record results for the six months to 31 March 2000

*   Operating profits increased by 35% to £1.32m (1999
    £0.85m)

*   Earnings per share increased by 41% to 4.5p (1999 : 3.2p)

*   Record order book with increase customer demand for
    acousto-optics

*   Development of a new range of crystals by CCI

*   Interim dividend increased to 0.75p (1999 : 0.6p)


Archie  Gooch,  Chairman  of Gooch & Housego  commented,  'The
difficulties  experienced last year  are  now  resolved.   Our
Balance Sheet is strong, we continue to generate cash and  are
well  placed to finance new opportunities as they arise.   The
results  for the six months are most encouraging and with  the
second half starting well I am confident that the growth shown
to date will be maintained'.

For further information :

Archie Gooch/Ian Bayer                        01460 52271
Gooch & Housego PLC

Tim Thompson                                  0207 466 5000
Buchanan Communications


GOOCH & HOUSEGO PLC

CHAIRMAN'S STATEMENT

I  am  pleased to report record results for the Group for  the
six  months  ended 31 March 2000. The trading results  show  a
significant increase in profits over the same period last year
with   each  of  the  Group  Companies  contributing  to   the
improvement. I would like to thank all those employed  by  the
Gooch & Housego Group, for without their support these results
could not have been achieved.

Results

Overall  Group  results  for  the  six  months  show  turnover
increasing by 40% to £5.98m (1999 : £4.25m), operating  profit
55%  higher  at £1.32m (1999 : £0.85m) and profit  before  tax
rising  43%  to  £1.19m (1999 : £0.83m).  Earnings  per  share
improved by 41% to 4.5p (1999 : 3.2p).

Dividends

As  a  measure  of the Board's confidence in the  current  and
future  prospects of the Group, it is declaring  an  increased
interim dividend of 0.75p (1999 : 0.6p).  The dividend will be
paid on 27th July 2000  to all shareholders on the register on
30 June 2000.

United Kingdom

Gooch & Housego PLC

Turnover  for the period was up 16% at £2.65m (1999 :  £2.29m)
while operating profits improved to £0.67m. The order book has
shown  an appreciable increase from £1.6m at the start of  the
financial year to its present value at £2.8m. The majority  of
the   increase  is  in  annual  acousto-optic  contracts  with
particularly  high demand for our Q-switch.  We are  receiving
many new orders including some from China and the Far East  as
well  as  our  core  overseas markets.  The  rest  of  the  UK
business  is  performing satisfactorily, and  we  expect  that
orders  for two large contracts, which are currently on  hold,
will be placed during this year.

In  my  last  report  I mentioned that the fibre-optic  switch
development had made progress and considerable effort has been
expended. Whilst we continue to research this project, I  must
re-state  that  we have not yet reached the  stage  where  the
switch can be developed as a commercial product.

United States

Cleveland Crystals Inc

Cleveland  Crystals Inc (CCI) continues  to  prove  to  be  an
excellent  acquisition for the Group.  The contracts  for  the
growth  and fabrication of crystals with the US Department  of
Energy,  under the guidance of the University of  California's
National  Ignition Facilty (NIF),  are continuing  to  enhance
both  sales  and  profits.  The N.I.F. programme  at  Lawrence
Livermore  National Laboratories (LLNL)  is  financed  with  a
$1.3  billion investment,  and to emphasise the importance  of
our  work,   LLNL  have invested $6m in specialised  equipment
located with CCI. In addition I have recently visited LLNL and
I believe that the Group is  well placed to receive orders for
a  range of optical components. Other countries throughout the
world  are also working on their own comparable programmes  in
co-operation  with  LLNL and this could lead  to  considerable
business  for  CCI  in  crystal growth  and  highly  technical
finishing.

I  continue to discuss with CCI the diversification  of  their
products.    The  development of a new range of  crystals  for
general  commercial  users has been well received  and  future
sales prospects for CCI are very encouraging.  The manufacture
and sale of pockel cells, (electro-optic Q-switches) continues
to  show growth and remains a key contributor to the Company's
profits.

Since  the  acquisition of CCI a new management structure  has
been  formed under the Presidency of Jeff Luken, and on behalf
of  the  Board I thank him, his staff and employees for  their
continued support, which augurs well for the future.

Optronic Laboratories Inc

The Company has performed satisfactorily for the six months to
31  March  2000 with sales increasing from £1.32m  to  £1.41m.
Operating  profits  of £101,000 were achieved  in  the  period
compared to the full year contribution to 30 September 1999 of
£66,000.  The optics facility is now showing signs of  gaining
significant customer orders and will soon be making a material
contribution  to  the  profits of OLI.   The  efforts  of  the
President Steve Denomme continue to be appreciated.

Prospects

The  difficulties experienced last year are now resolved.  Our
Balance Sheet is strong, we continue to generate cash and  are
well placed to finance new opportunities as they arise.

The  results for the six months are most encouraging and  with
the  second half starting well I am confident that the  growth
shown to date will be maintained.

Gooch & Housego PLC
Archie Gooch MBE JP
Executive Chairman
14 June 2000

Unaudited Group Profit and Loss Account
for the six months ended 31 March 2000

                             6 months     6months   12 months
                                ended       ended       ended
                             31 March    31 March30 September
                                 2000        1999        1999
                           (Unaudited) (Unaudited)   (audited)
                                £ 000       £000       £ 000
______________________________________________________________

Turnover                         5976        4254       10377
                                 -----------------------------  
Operating profit                 1318         852        2001

Net interest payable            (130)        (19)       (150)
                                -----------------------------
Profit on ordinary activities
 before taxation                1188         833        1851

Taxation                        (433)       (291)       (756)
                                -----------------------------
Profit on ordinary activities 
 after taxation                  755         542        1095

Dividends                       (127)       (101)       (321)
                                -----------------------------
Retained profit                  628         441         774
                                -----------------------------  
Earnings per share               4.5p        3.2p        6.5p

Dividends per share              0.75p       0.6p        1.9p
                                -----------------------------


Statement Of Total Recognised Gains And Losses


Profit for the financial period   755        542         1095

Currency translation difference
on foreign Currency net
investments                        94        112           16
______________________________________________________________

Total gains and losses for
the financial period              849        654         1111
______________________________________________________________


Unaudited Group Balance Sheet
as at 31st March 2000
                               As at       As at       As at
                            31 March    31 March 30 September
                                2000        1999        1999
                         (Unaudited) (Unaudited)   (audited)
                              £ 000       £000       £ 000
______________________________________________________________

Fixed assets
Intangible assets              3250        3412        3336
Tangible assets                3598        3337        3497
                               ----------------------------
                               6848        6749        6833
                               ----------------------------
Current assets
Stock                          1602        1777        1440
Debtors                        2688        2302        3238
Cash at Bank and in hand       1000         735         269
                               ----------------------------
                               5290        4814        4947
                               ----------------------------
Creditors
Amounts falling due within
 one year                     (2781)      (2443)      (2806)
                               -----------------------------
Net current assets             2509        2371        2141
                               -----------------------------
Total assets less current
 liabilities                   9357        9120        8974
                               -----------------------------
Creditors
Amounts  falling due in more
 than one year                (2573)      (3299)      (2916)
                               -----------------------------
                               6784        5821        6058
                               =============================
Capital and reserves
Called up share capital        3381        3381        3381
Share premium                  1113        1113        1113
Revaluation reserve             308         308         308
Profit and Loss account        1982        1019        1256
                               -----------------------------
                               6784        5821        6058
                               =============================

Consolidated Cash Flow Statement
For the six months ended 31 March 2000

                             6 months     6months   12 months
                                ended       ended       ended
                             31 March    31 March  30 September
                                 2000        1999       1999
                      Note (Unaudited) (Unaudited)   (audited)
                                £ 000       £000       £ 000
Cash flow from 
operating activities   (i)       2157         672        1592
Returns on investments
and servicing of finance
Interest received                  14          31          41
Interest paid                    (143)        (33)       (173)
Interest element of hire 
purchase contracts                 (1)         (2)         (1)
______________________________________________________________

Net cash outflow from
returns on Investments 
and servicing of finance         (130)         (4)       (133)

Taxation                          (78)        (51)       (522)
Overseas tax paid                (230)        (40)       (251)
______________________________________________________________

Cash outflow from taxation       (308)        (91)       (773)

Capital expenditure and 
financial investment
Acquisition of subsidiary          -        (4089)      (4272)
Cash acquired on acquisition       -           55          55
Purchase of tangible fixed
 assets                         (215)        (245)       (612)
Sale of tangible fixed assets      -            3          15
______________________________________________________________

Net cash outflow from capital 
expenditure and Financial
investment                     (215)        (4276)     (4814)

Equity dividends paid          (220)         (203)      (304)
______________________________________________________________

Net cash inflow(outflow)
 before financing              1284         (3902)     (4432)

Financing
New bank loans                    -          3338       3411
Repayment of bank loan         (421)         (105)      (202)
Hire purchase repayment         (34)          (28)       (49)
______________________________________________________________

Net cash (outflow)/inflow
from financing                 (455)         3205       3160

Increase/(Decrease)
in cash in the period  (ii)     829          (697)     (1272)
______________________________________________________________


Notes To The Cash Flow Statement

(i)   Reconciliation  of operating profit  to  operating  cash
flows

                           6 months    6 months    12 months
                              ended       ended        ended
                           31 March    31 March 30 September
                               2000        1999         1999
                        (Unaudited) (Unaudited)    (audited)
                              £ 000       £000        £ 000

Operating profit               1318         852         2001
Depreciation                    209         165          362
Amortisation of goodwill         86          28          115
Loss on sale of fixed assets     22           -            -
(Increase)/Decrease in stock   (224)       (115)         203
Decrease/(increase) in debtors  661        (282)       (1290)
Increase/(decrease) in creditors 85          24          201
______________________________________________________________

                               2157         672         1592
______________________________________________________________

(ii) Reconciliation of net
     cash inflow to movement
     in net debt

Increase/(Decrease) in cash
 in the period                  829        (697)       (1272)
Cash outflow/(inflow) from
decrease/(increase) in debt
and lease financing             455         133        (3160)
______________________________________________________________                 
        
Changes in net debt resulting
 from cashflows                1284        (564)       (4432)
New bank loans                    -       (3338)           -
New  hire purchase and finance
lease contracts                   -          -           (66)
Translation difference           13         (17)          23
______________________________________________________________

Movement in net debt in the
period                         1297       (3919)       (4475)
Net debt at 1 October 1999    (3582)        893          893
______________________________________________________________

Net debt at 31 March 2000     (2285)      (3026)       (3582)
______________________________________________________________


(iii)     Analysis of net (debt)/funds

                        At                              At
                   1 October            Exchange     31 March
                      1999  Cash flow    movement      2000
                     £ 000    £ 000       £ 000       £ 000
______________________________________________________________

Cash in hand at bank   269     715           16         1000
Overdrafts            (114)    114           -            -
______________________________________________________________

                       155     829           16         1000
Debt due after
 1 year              (2900)    329           (2)       (2573)
Debt due within
 1 year               (763)     92           (1)        (672)
Hire Purchase          (74)     34            -          (40)
______________________________________________________________
                     (3582)   1284           13        (2285)
______________________________________________________________


Notes to the Financial statements
for the six months ended 31 March 2000


1.    The summarised results for the six months ended 31 March
  2000 and the comparative figures for the six months ended 31
  March 1999 are unaudited.  The figures for the year ended 30
  September  1999 have been extracted from the group statutory
  accounts,  which  have  been filed  with  the  Registrar  of
  Companies and contain an unqualified audit report.

2.    Taxation for the six months ended 31 March 2000  and  31
  March  1999  has  been  estimated at prevailing  tax  rates.
  Taxation for the year ended 30 September 1999 is the  actual
  provision for that year.

3.    Earnings per share have been calculated on the total  of
  16,904,162  shares,  being the number  of  shares  in  issue
  throughout the periods reported above.

4.    All  of  the amounts above are in respect of  continuing
  operations.

5.    Accounting policies are consistent with those applied in
  previous  years  and are as set out in the  Group's  audited
  accounts at 30 September 1999.

6.    The  interim  dividend will be paid on 27 July  2000  to
  shareholders on the register at close of business on 30 June
  2000.

7.    Copies  of  the Interim Statement will be despatched  to
  shareholders during the week commencing 19 June 2000 and are
  available from the Company Secretary, Gooch & Housego PLC, The
  Old Magistrates Court,  Ilminster, Somerset.  TA19 0AB.