Superconductivity Restructure

Oxford Instruments PLC
16 February 2006


Embargoed until 7am Thursday 16 February 2006


      Restructuring of Oxford Instruments' UK Superconductivity businesses

Oxford Instruments plc today announces the creation of Oxford Instruments
NanoScience and its intention to discontinue general volume production of
undifferentiated low field magnets for OEM customers.

In the UK, Oxford Instruments' Superconductivity Segment currently consists of
two businesses: the market leading Physical Science business based at Tubney
Woods in Oxfordshire, providing specialist magnet and cryogenic systems directly
to end user customers in the applied research field; and the Magnet Technology
business based at Eynsham in Oxfordshire, manufacturing NMR and ICR magnet
systems for original equipment manufacturers (OEMs) to incorporate in the
systems they supply to their end user customers.

Whilst the Physical Science business continues to maintain a very strong
position in its market, the Magnet Technology business has been suffering from a
decline in the demand from its OEM customers for undifferentiated low field
magnets. The markets for Oxford Instruments' technically demanding, high field
NMR magnets and the newly emerging DNP-NMR magnet systems continue to provide
growth opportunities.

In order to respond to these changed market circumstances, it is now proposed to
discontinue general volume production of undifferentiated low field magnets for
OEM customers after completing all existing commitments. This creates an
opportunity to merge the high technology, high field NMR magnet products, and
their associated R&D and engineering, with the growing Physical Science
business. In addition, it will be possible to reshape the business, address the
overall cost base and give a secure platform from which to grow.

At the end of March 2006, it is proposed to consolidate all the UK magnet and
cryogenic expertise and resources at the Tubney Woods site, and to form a new
business - Oxford Instruments NanoScience. This business will:


   • include all the activity currently undertaken by the Physical Science
     business of Superconductivity;
   • continue the Superconductivity business' activity in higher margin, high
     performance specialist NMR magnets; these will be sold to end-users,
     including through the Magnets Direct programme.
   • continue to provide a full service support to customers worldwide


As a result of these changes a number of redundancies will be proposed and the
Company is initiating consultation with all parties who may be affected.

The loss-making activities, which are to be discontinued, are expected to
contribute sales of £11m in the current financial year. The establishment of the
new business as a consolidated operation and the closure of these loss-making
activities will involve a one-off non-recurring charge of approximately £5m,
represented by cash costs of £2m together with additional provisions of £3m.
Alternative uses for the Eynsham site are being explored.

Overall, these actions are expected to deliver at least a £3m year on year
improvement in operating profit in 2006/07. The new product development
expenditure programme of up to £5m next year will be unaffected.

Jonathan Flint, Chief Executive of Oxford Instruments, said: "Our strategy is
focused on delivering enhanced and sustainable shareholder value by developing
our position as the leading provider of tools and systems for customers working
at the nanoscale. The formation of the Oxford Instruments NanoScience business
represents an important step in realising this strategy."


Enquiries: 

Oxford Instruments plc                Tel: [phone]     Fax: [phone]
Jonathan Flint, Chief Executive
Martin Lamaison, Financial Director

Hogarth Partnership Limited           Tel: [phone]    Fax: [phone]
Rachel Hirst
Andrew Jaques



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