Re Contract

Oxford Instruments PLC
12 October 2004



12 October 2004

                             Oxford Instruments plc
                                        
                                        
                   Contract Extension signed with Varian Inc.

                                        
Oxford Instruments plc ("Oxford Instruments", the "Company"), the advanced
instrumentation company, announces today that it has signed a new contract with
Varian Inc. ("Varian") for the continued supply of Nuclear Magnetic Resonance
("NMR") products, including superconducting magnets for Varian's NMR
instruments. The three-year contract builds on the current long-standing
supplier agreement with both companies and specifies minimum volumes of business
until March 2006 and a framework for supply covering the subsequent two years.
The Company has been supplying the majority of magnets to Varian for NMR
spectroscopy measurements which are used in drug discovery and other
applications.

The contract extension will cover the continued supply of the majority of
Varian's requirements for the current range of NMR magnets. Oxford Instruments
will continue to develop new and differentiated products for the NMR marketplace
in general, as well as other markets.
Andrew Mackintosh, Chief Executive of Oxford Instruments, said: "As Varian has
been one of our principal customers for magnets, we are extremely pleased to
have extended our agreement with them. Overall, we expect demand from the NMR
instrument market to continue at current levels."

Enquiries:

Oxford Instruments plc                                   01865 884667
Andrew Mackintosh, Chief Executive
Martin Lamaison, Finance Director


Hogarth Partnership Limited                              020 7357 9477
Andrew Jaques
Rachel Hirst


Notes to editors

Oxford Instruments plc

Oxford Instruments is a global leader in advanced instrumentation. It is a
recognised world leader in several technologies, including the application of
superconductivity, the creation of low temperatures, the production and
detection of X-rays and in neurological measurements. The Company's products are
used around the world in scientific research, industrial chemical analysis and
quality control, healthcare and semiconductor processing. Its customers include
most of the world's major international companies, as well as the leading
hospitals and research institutes.

Born out of Oxford University, with over 40 years of continuous product
development, Oxford Instruments today comprises three businesses: Analytical,
Medical and Superconductivity.


                      This information is provided by RNS
            The company news service from the London Stock Exchange